NC H152

Establishes a new historic preservation tax credit program for taxpayers rehabilitating certified historic structures in North Carolina, effective January 1, 2015, and expiring January 1, 2021.

For income-producing historic structures, allows a credit of 15% on qualified rehabilitation expenses up to $10 million, 10% on expenses from $10-$20 million, plus additional bonuses of 5% each for development tier areas and eligible targeted investment sites, capped at $4,500,000 per structure.

For non-income-producing historic structures, allows a credit of 15% of rehabilitation expenses (minimum $10,000), capped at $22,500 per property parcel, with limitations on claiming more than once per five-year period.

Permits pass-through entities to allocate credits among owners if the owner maintains at least 40% adjusted basis, and requires forfeiture of credits if federal credits are recaptured or if ownership interests change significantly within five years of placing the structure in service.

Credits can be claimed against franchise tax, income tax, or gross premiums tax, with unused credits carried forward for up to nine years, and requires taxpayers to maintain documentation and obtain certification from the State Historic Preservation Officer.