Historic Rehabilitation Tax Credit Amendments
The bill, if enacted, would directly impact taxpayers who engage in the rehabilitation of historic buildings by providing them with a financial incentive to invest in the preservation and restoration of such structures. By allowing the assignment of tax credits, the legislation encourages more stakeholders to participate in preservation efforts, as credits can be sold or transferred, increasing the net benefit for investors and developers involved in historic projects. This could potentially lead to a resurgence in the restoration of historic properties across the state, contributing to economic development and heritage conservation.
S.B. 234, known as the Historic Rehabilitation Tax Credit Amendments, proposes modifications to the existing tax credits available for expenditures related to the rehabilitation of historic buildings. Specifically, this bill allows taxpayers to claim a tax credit amounting to 20% of qualified rehabilitation expenditures that exceed $10,000, applicable to both residential and commercial certified historic properties. The rehabilitation work must be approved by the State Historic Preservation Office to ensure compliance with the Secretary of the Interior's Standards for Rehabilitation, preserving the historical qualities of the buildings involved.
During discussions surrounding S.B. 234, notable points of contention arose around the administrative capacity of the State Historic Preservation Office to manage the increased volume of project approvals, alongside concerns about ensuring meaningful standards are upheld in rehabilitation projects. Some opponents expressed apprehensions that the assignment feature might lead to abuses of the credit system or diminish the intended preservation outcomes. Proponents, however, argued that the flexibility offered by credit assignment would enhance participation and is essential for revitalizing historic districts that face economic challenges.