AN ACT TO ENACT A HISTORIC PRESERVATION TAX CREDIT.
Enacts new GS Chapter 105, Article 3L, Historic Rehabilitation Tax Credits Investment Program, providing for tax credits for a taxpayer allowed a federal income tax credit for making qualified rehabilitation expenditures for a certified income-producing historic structure in the amount of 15 percent for rehabilitation expenditures that range from $0 to $10 million, and 10 percent for expenditures that range form $10 million to $20 million. Further provides for development tier bonuses and targeted investment bonuses. Includes provisions in regards to pass-through entities that qualify for a tax credit and how the credit can be allocated. Includes definitions for the new article, including certified historic structure, eligibility certification, pass-through entity, and targeted investment. Establishes a tax credit ceiling, providing that no tax credit for an income-producing certified historic structure can exceed $4.5 million. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.
Establishes a tax credit for a taxpayer not allowed a federal income tax credit for making qualified rehabilitation expenditures for a certified non-income-producing historic structure that has rehabilitation expenses of at least $10,000, providing that the credit is equal to 15 percent of the rehabilitation expenses. Provides a tax credit ceiling of $22,500 per discrete property parcel. Provides certain limitations and allowances for the credit. Provides definitions for use in the section, including discrete property parcel, placed in service, and rehabilitation expenses. Authorizes the NC Historical Commission (Commission), in consultation with the State Historic Preservation Officer, to adopt rules necessary to administer the certification process of Article 3L and allows the adoption of a fee schedule for providing such certifications, with specified limitations. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.
Enacts provisions that outline how and against what tax liability the credits can be claimed as well as specified caps and forfeiture provisions. Enacts language which requires substantiation of certain information in order to claim a credit, including copies of certifications, a copy of an eligibility certification, and other specified records that can be required by the Secretary of Revenue. Provides that if a credit is issued pursuant to Article 3L, no other tax credit can be claimed from Articles 3D or 3H under GS Chapter 105 for the same activity. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.
Provides reporting and tracking requirements, directing the Department of Revenue to include specified information in the economic incentives report, including the number of taxpayers that took the credits allowed, total cost to the General Fund of the credits taken, and the total amount of tax credits carried forward, by type of tax. Provides that new Article 3L expires for rehabilitation expenditures and rehabilitation expenses on January 1, 2021. Effective January 1, 2015, applying to qualified rehabilitation expenditures and expenses incurred on or after that date.
Amends GS 105-129.75, the sunset provision for mill rehabilitation tax credits, providing that the eligibility certifications under GS Chapter 105, Article 3H, expire on January 1, 2023.
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