HB 2316 Summary

• Allows restaurants classified under section 42-5074 a tax credit equal to 30% of audited remodeling costs against transaction privilege tax liability for taxable periods beginning after December 31, 2018.

• Credit applies only to increased tax liability from additional business revenue at the remodeled premises, calculated by comparing current period taxes to the average tax paid over the 36 months before remodeling began; requires the taxpayer to have operated at the same location for at least 36 months.

• Requires taxpayers to enter into a limited managed audit agreement with an independent certified public accountant (not regularly affiliated with the taxpayer) to verify remodeling expenses and the credit amount; once accepted by the director, the audited costs and credit cannot be recaptured unless the taxpayer failed to disclose material information or falsified records.

• Unused credit amounts carry forward to succeeding taxable periods until fully consumed; taxpayer must claim credit on department-prescribed forms and cannot be delinquent on tax payments.

• Defines "remodeling" as structural alterations to the restaurant including changes in decorations, furnishings, and appliances.