AB 370 — Provides for transferable tax credits for the rehabilitation of historic buildings. (BDR 32-536)

(Reprinted with amendments adopted on April 21, 2017) FIRST REPRINT A.B.

370 ASSEMBLYA SSEMBLY BILL NNO O..

370–A370–ASSEMBLYWOMEN SSEMBLYWOMENS SWANKWANK AND CCOHEN OHEN M ARCH 20, 2017 ____________ Referred to Committee on Taxation SUMMARY—Provides for transferable tax credits for the rehabilitation of historic buildings.

authorizing the Office of Historic Preservation of the State Department of Conservation and Natural Resources to approve and issue a certificate of transferable tax credits to a person who rehabilitates a historicalhistoric building in this State under certain circumstances;

providing for the calculation of the transferrabletransferable tax credits;

requiring the Office to provide notice of certain hearings;hearings concerning an application for transferable tax credits;

requiring a person who rehabilitates a historicalhistoric building to return any portion of transferable tax credits to which he or she is not entitled;

qualifiedSection historical7 buildingof tothis applybill toauthorizes thea Officeperson ofwho Historicundertakes Preservationthe rehabilitation of thea State Department of Conservation and Natural Resources for a certificate of of the transferable tax credits.

Under section 5 of this bill, a building is a “qualified historicalhistoric building” if the building isis: at least 50 years of age and is nonresidential real property as defined in certain federal laws authorizing tax credits for the rehabilitation of historical buildings.

Section(1) 7at requiresleast the50 Officeyears to approve an the applicant incurred certain eligible costs and expenses in connection with thements, rehabilitation of theage; building and the Office certifies that the rehabilitation of the building satisfies the standards for the rehabilitation of historical buildings set forth in certain federal regulations.

(2) nonresidential real property as defined in certain federal laws authorizing tax credits for the rehabilitation of historic buildings;

and (3) eligible for the National Register of Historic Places.

Section 7 requires the Office to approve an application for incurred certain eligible costs and expenses of at least $20,000 in connection withnt the rehabilitation of the building and the Office certifies that the rehabilitation of the building satisfies the standards for the rehabilitation of historic buildings set forth in certain federal regulations.

- *AB370_R1* – 2 – Sections 8 and 9 of this bill provide for the calculation of the amount of transferable tax credits and duration for which such transferable tax credits are valid.must be equal to 20 percent of the eligible costs and expenses incurred by theplicant applicant for the rehabilitation but must not exceed $3 million per qualified rehabilitation.

UnderSection section9 8,provides that the amount of transferable tax credits issuedexpire to5 anyears applicantafter - *AB370* – 2 – must be equal to 20 percent of the eligibledate costson andwhich expenses incurred by the applicantcredits forare theissued. rehabilitation.

Section 9 provides that the transferable tax credits expSection 10 of this bill requires the Office to meet certain notice requirements before holding a hearing to approve or disapprove an application for transferable tax credits.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:DFOLLOWS: IN Section 1.

Section 1.

“Eligible costs and expenses” means any amount properly chargeable to the capital account of a qualified historicalhistoric building in connection with a qualified rehabilitation.

“Qualified historicalhistoric building” means a building in this State that isis: at least 50 years of age and is nonresidential real property as defined in 26 U.S.C.

§1. 168(e)(2)(B).

At least 50 years of age;

2.

Nonresidential real property as defined in 26 U.S.C.

§ 168(e)(2)(B);

and 3.

Eligible for listing in the National Register of Historic Places.

“Qualified rehabilitation” means the rehabilitation of a qualified historicalhistoric building that the Office has certified as meeting the standards for rehabilitation as defined in 36 C.F.R.

A person who undertakes a qualified rehabilitation may apply to the Office for a certificate of eligibility - *AB370_R1* – 3 – for transferable tax credits for any eligible costs and expenses.

The transferable tax creditcredits may be applied to:

- *AB370* – 3 – 2.

(b) Provide proof satisfactory to the Office that the building is a qualified historicalhistoric building;

(c) Provide proof satisfactory to the Office that the rehabilitation of the qualified historicalhistoric building is a qualified rehabilitation;

(d) NotProvide laterproof thansatisfactory 90to days after the dateOffice onthat which the qualifiedapplicant historicalhas buildingincurred was first placed in service after the qualified rehabilitation, provide the Office with an itemized report of eligible costs and expenses incurred by the applicant and documentation to establish the amount of the$20,000 eligibleor costsmore andin expensesundertaking incurred by the applicant;qualified rehabilitation;

and (e) MeetNot anylater otherthan requirements90 prescribeddays after the date on which the qualified historic building was first placed in service after the qualified rehabilitation, provide the Office with an itemized report of eligible costs and expenses incurred by regulationthe pursuantapplicant and documentation to thisestablish section.the amount of the eligible costs and expenses incurred by the applicant;

and (f) Meet any other requirements prescribed by regulation pursuant to this section.

(b) A description of the qualified historicalhistoric building for which the applicant will undertake a qualified rehabilitation;

- *AB370_R1* – 4 – 5.

If the Office approves an application for a certificate of eligibility for transferrabletransferable tax credits pursuant to this section, the Office shall immediately forward a copy of the certificate of eligibility which identifiedidentifies the estimated amount of the tax credits available pursuant to section 8 of this act, to:

Within 60 business days after receipt of the report and documentation provided pursuant to paragraph (c)(e) of subsection 3 and any other accountings or other information required by the Office, the Office shall make a final determination of whether a - *AB370* – 4 – certificate of transferable tax credits will be issued.