NC H899

Modifies the historic rehabilitation tax credit under G.S. 105-129.105 to allow pass-through entities to allocate credits among owners without regard to Internal Revenue Code provisions treating the allocation as a "disguised sale."

Requires that an owner receiving an allocated credit must have an adjusted basis in the pass-through entity equal to at least 40% of the credit amount allocated to that owner at the end of the taxable year the historic structure is placed in service.

Mandates that pass-through entities and their owners include statements with their tax returns for every year showing the actual credit allocation made and what allocation would have been required under existing law.

Maintains existing credit rates (15% for expenses up to $10 million, 10% for $10-20 million) and bonuses for development tier areas and targeted investment sites.

Credit limitation of $4,500,000 per income-producing certified historic structure remains unchanged.