House Bill 1201 Summary

• Establishes a tax credit program allowing taxpayers to claim 25% of rehabilitation costs for developing blighted, tax-forfeited property as owner-occupied dwellings or commercial buildings, with minimum costs of $50,000 for residential and $100,000 for commercial properties.

• Allows excess tax credits to carry forward for 10 years, with taxpayers able to elect a 75% rebate instead of a credit, paid from current tax collections within 12 months of voucher issuance.

• Caps annual tax credits and rebates at $2 million per calendar year and $10 million aggregate across all years, with credits awarded based on project completion dates.

• Creates a separate incentive payment program where municipalities and counties remit ad valorem tax revenue from increased property values to the state, which distributes these funds to developers as incentive payments not to exceed 25% of approved project budgets.

• Limits both programs to properties approved by December 31, 2030, with Section 1 effective January 1, 2025, and remaining sections effective July 1, 2025.