HI HB2942

Counties with populations of at least 500,000 must designate at least four square miles of blighted areas as urban core redevelopment districts, focusing on low-density, multi-family residential areas.

Developers and purchasers/lessees of properties in designated districts may claim a 100% income tax deduction for expenditures on acquisition, fees, planning, design, and construction of residential or mixed-use building units.

Purchasers and lessees of developed units receive income tax credits ranging from $3,000 to $20,000 depending on unit type and lease duration, with excess credits usable against future years' tax liability.

Development-related permit applications for urban core redevelopment projects must be approved or denied within 30 days of receipt, or the application is automatically deemed approved.

Act takes effect July 1, 2010, and applies to taxable years beginning after December 31, 2009.