HB 5190 — AN ACT CONCERNING THE HISTORIC HOMES REHABILITATION TAX CREDIT.

Substitute House ofBill Representatives General Assembly File No.

3595190 FebruaryPublic Session,Act 2024 Substitute House Bill No.

519024-109 HouseAN ofACT Representatives,CONCERNING AprilTHE 9,HISTORIC 2024HOMES TheREHABILITATION CommitteeTAX onCREDIT. Commerce reported through REP.

MESKERS of the 150th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING THE HISTORIC HOMES REHABILITATION TAX CREDIT.

(A) Will contain one-to- four dwelling units of which at least one unit will be occupied as the principal residence of the owner for not less than five years following sHB5190the /completion Fileof No.rehabilitation work, and (B) is (i) listed individually on the National or State Register of Historic Places, or (ii) located in a district listed on the National or State Register of Historic Places, and has been certified by the department as contributing to the historic character of such district;

359Substitute 1House sHB5190Bill File No.

3595190 the(3) completion"Nonprofit ofcorporation" rehabilitationmeans work,a andnonprofit (B)corporation isincorporated (i)pursuant listedto individuallychapter on602 theor Nationalany orpredecessor Statestatutes Registerthereto, having as one of Historicits Places,purposes the construction, rehabilitation, ownership or (ii)operation locatedof inhousing aand districthaving listedarticles onof theincorporation Nationalapproved orby Statethe RegisterCommissioner of HistoricEconomic Places, and hasCommunity beenDevelopment certifiedin byaccordance thewith departmentregulations asadopted contributingpursuant to thesection historic8-79a characteror of8-84; such district;

(3) "Nonprofit corporation" means a nonprofit corporation incorporated pursuant to chapter 602 or any predecessor statutes thereto, having as one of its purposes the construction, rehabilitation, ownership or operation of housing and having articles of incorporation approved by the Commissioner of Economic and Community Development in accordance with regulations adopted pursuant to section 8-79a or 8-84;

and sHB5190(7) /"Occupancy Fileperiod" No.means a period of five years during which one or more owners occupy an historic homeas such owner's or owners' primary residence.

359The 2occupancy sHB5190period Filebegins on the date the tax Public Act No.

35924-109 (7)2 "Occupancy period" means a period of five6 yearsSubstitute duringHouse whichBill oneNo. or more owners occupy an historic homeas such owner's or owners' primary residence.

The5190 occupancy period begins on the date the tax credit voucher is issued by the Department of Economic and Community Development.

The department shall sHB5190Public /Act File No.

35924-109 3 sHB5190of File6 Substitute House Bill No.

3595190 review such rehabilitation and verify its compliance with the rehabilitation plan.

(A) (i) For a taxpayer holding a tax credit voucher issued prior to January 1, 2024, under subsections (d) to (h), inclusive, of this section, againstPublic anyAct taxNo. due under chapter 207, 208, 209, 210, 211 or 212 in the amount specified in the tax credit voucher.

sHB519024-109 /4 Fileof 6 Substitute House Bill No.

3595190 4against sHB5190any Filetax No.due under chapter 207, 208, 209, 210, 211 or 212 in the amount specified in the tax credit voucher.

359 (ii) Any unused portion of such credit under this subparagraph may be carried forward to any or all of the four income years following the year in which the tax credit voucher is issued;

and] [(C) (i) For an owner that is a nonprofit corporation holding a tax credit voucher issued on or after January 1, 2024, under subsections (d) to (h), inclusive, of this section, against the tax due under chapter 208a in the amount specified in the tax credit voucher.] [(ii) Any] (iii) If a taxpayer holding such tax credit voucher claims a credit against any tax imposed under chapter 207, 208, 208a, 209, 210, 211 or 212, any unused portion of such credit under this subparagraph may be carried forward to any or all of the four income years following the year in which the tax credit voucher is issued.

(2) The Department of Economic and Community Development shall providePublic aAct copyNo. of the voucher to the Commissioner of Revenue Services upon the request of said commissioner.

(j)24-109 A5 creditof allowed6 underSubstitute thisHouse sectionBill shall not exceed thirty thousand dollars per dwelling unit for an historic home, except that sHB5190 / File No.

3595190 5provide sHB5190a Filecopy No.of the voucher to the Commissioner of Revenue Services upon the request of said commissioner.

359(j) A credit allowed under this section shall not exceed thirty thousand dollars per dwelling unit for an historic home, except that such credit shall not exceed fifty thousand dollars per such dwelling unit for an owner that is a nonprofit corporation.

ThisApproved actJune shall4, take2024 effectPublic asAct followsNo. and shall amend the following sections:

Section24-109 16 Julyof 1,6 2024, and 10-416 applicable to taxable and income years commencing on or after January 1, 2024 CE Joint Favorable Subst.

sHB5190 / File No.

359 6 sHB5190 File No.

359 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill, which restores the ability to apply historic homes rehabilitation tax credits against a variety of taxes, does not result in any fiscalimpacttothestateormunicipalities.

Itdoesnotaltertheaggregate $3 million cap on the amount of credits allowed annually, and current projections (January 16, 2024, Consensus Revenue) assume full credit utilization each fiscal year.

The Out Years State Impact:

None Municipal Impact:

None sHB5190 / File No.

359 7 sHB5190 File No.