HB 1111 Summary

• Increases the minimum qualified expenditures for state historic rehabilitation tax credits from $10,000 to $25,000 and requires properties to have been vacant for at least one year to be eligible.

• Caps state tax credits certified annually at $450,000 (excluding carryover amounts) and limits credits for any single property to 20% of the annual cap.

• Requires the division to reserve 25% of annual credits for projects with qualified expenditures not exceeding $500,000 and prohibits reallocating credits between fiscal years.

• Establishes local tax credit authority allowing counties and municipalities to adopt ordinances granting credits against local income tax or property tax (up to 20%) for historic property preservation and rehabilitation.

• Allows pass-through entities and their shareholders/partners/members to claim proportional credits if the entity has insufficient tax liability, and permits unused credits to carry over to future years.