HB 1318 Summary

• Transfers administration of the historic rehabilitation tax credit from the Division of Historic Preservation and Archeology to the Office of Community and Rural Affairs, effective July 1, 2013.

• Establishes four new credit amount methodologies: 40% for projects under $2,000,000, schools, hospitals, or Main Street properties; 40% for projects scoring 50+ points under a new scoring system; and 20% for all other eligible properties, with a 1.3 multiplier for difficult development areas or qualified census tracts.

• Requires historic properties to have been vacant for at least one year prior to rehabilitation and raises the minimum qualified expenditure threshold from $10,000 to $25,000.

• Phases in increases to the annual statewide tax credit cap: $2,500,000 (FY 2013), $5,000,000 (FY 2014), $7,500,000 (FY 2015), and $10,000,000 (FY 2016 and beyond), with 25% reserved for projects under $500,000 in expenditures.

• Voids the $100,000 maximum credit per project rule and prohibits the office from reallocating unused credits between fiscal years.