SB 298 Summary

• Establishes a nonrefundable tax credit equal to 25% of qualified rehabilitation expenditures for owner-occupied homes built before December 31, 1949, located in low-income census tracts, with a maximum credit of $30,000 per taxpayer.

• Allows homeowners to apply for rehabilitation tax credit certificates beginning in fiscal year 2011 for expenditures paid after June 30, 2010, with applications limited to 5,000 per application period.

• Defines qualified rehabilitation expenditures to include repair, alteration, architectural/engineering fees, and national register nomination expenses while preserving historic and architectural features.

• Permits certificate owners to carry forward unused credits for up to five subsequent taxable years and requires retention of certificates and documentation for four years following the tax year applied.

• Establishes the tax commissioner authority to adopt rules for application procedures, eligibility requirements, and monitoring, with approval contingent on determining the credit is a major factor in the homeowner's decision to rehabilitate.