Bill Text: HI SB1394 | 2019 | Regular Session | Amended
Bill Title: Relating To Historic Preservation.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Passed) 2019-07-09 - Act 267, 07/08/2019 (Gov. Msg. No. 1369). [SB1394 Detail]
Download: Hawaii-2019-SB1394-Amended.html
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THE SENATE |
S.B. NO. |
1394 |
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THIRTIETH LEGISLATURE, 2019 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HISTORIC PRESERVATION.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§235- Historic preservation income tax credit. (a)
Notwithstanding any law to the contrary, there shall be allowed to each
taxpayer subject to tax imposed by this chapter an income tax credit that shall
be deductible from the taxpayer's net income tax liability, if any, imposed by
this chapter for the taxable year in which the tax credit is properly
claimed. For each rehabilitation plan
for a certified historic property that is certified by qualified professional
staff of the department of land and natural resources' state historic
preservation division, the amount of the tax credit shall be:
(1) Twenty-five per
cent of the qualified rehabilitation expenditures; or
(2) Thirty per cent
of the qualified expenditures in the event that:
(A) At
least twenty per cent of the units are rental units and qualify as affordable
housing; or
(B) At
least ten per cent of the units are individual homeownership units and qualify
as affordable housing.
(b) The tax credit allowed under this section
shall be available in the taxable year in which the substantially rehabilitate
structure is placed into service. In the
case of projects completed in phases, the tax credit shall be prorated to the
substantially rehabilitated identifiable portion of the building placed into
service during that taxable year.
(c) In the case of a partnership, S corporation,
estate, trust, or any developer of a rehabilitated historic structure, the tax
credit allowable shall be as provided under subsection (b) for the taxable
year. The cost upon which the credit is
computed shall be determined at the entity level and the distribution and share
of the tax credit shall be determined pursuant to section 704(b) of the
Internal Revenue Code.
(d) If the tax credit under this section exceeds
the taxpayer's income tax liability, the excess of the credit over the
liability shall be refunded to the taxpayer; provided that no refund on account
of the tax credit allowed by this section shall be refunded for an amount less
than $1. All claims, including any
amended claims, for the tax credit under this section shall be filed on or
before the end of the twelfth month following the close of the taxable year for
which the credit may be claimed. Failure
to comply with foregoing provision shall constitute a waiver of the right to
claim the credit.
(e) The state historic preservation division
shall develop rules pursuant to chapter 91 for the approval of rehabilitation
of certified historic structures for which the tax credit under this section is
sought. These standards and criteria
shall take into account whether the rehabilitation of a certified historic
structure will preserve the historic character of the building.
(f) Following the completion of rehabilitation of
a certified historic structure, the owner shall notify the state historic
preservation division that the rehabilitation has been completed. The owner shall provide the state historic
preservation division with documentation of the costs incurred in
rehabilitating the historic structure and shall submit certification of the
costs incurred in rehabilitating the historic structure. The state historic preservation division
shall review the rehabilitation and verify that the rehabilitation project
complied with the rehabilitation plan.
The administrator of the state historic preservation division shall
certify in writing that the rehabilitation has been completed in accordance
with the approved rehabilitation plan, and provide that certification to both
the project proponent and the director of taxation.
(g) The director of taxation shall prepare any
forms that may be necessary to claim the tax credit under this section. The director may also require the taxpayer to
furnish reasonable information to ascertain the validity of the claim for
credit made under this section and may adopt rules necessary to effectuate the
purposes of this section pursuant to chapter 91.
(h) The aggregate amount of the tax credits
claimed for qualified tax credits claimed for qualified rehabilitation projects
for not exceed:
(1) $
for the 2020 tax year;
(2) $
for the 2021 tax year;
(3) $
for the 2022 tax year;
(4) $
for the 2023 tax year; and
(5) $
for the 2024 tax year and every year thereafter.
The state historic preservation division shall be
required to monitor and advise the department of taxation of the projected tax
credit amount projected each year.
(i) On an annual basis, the state historic
preservation division, in consultation with the department of taxation, shall
determine the information necessary to enable a quantitative and qualitative
assessment of the outcomes of the tax credit to be determined. Each taxpayer claiming this credit shall, no
later than the last day of the taxable year following the close of the tax year
in which qualified costs were expended, submit a written, certified statement
to the state historic preservation division containing the qualified
rehabilitation expenditures incurred by the taxpayer and any other information
the state historic preservation division or department of taxation may require.
Any taxpayer failing to submit
information to the state historic preservation division in a manner prescribed
by the state historic preservation division prior to the last day of the
taxable year following the close of the tax year in which the qualified costs
were expended shall not be eligible to receive the tax credit for those expenses,
and any credit already claimed for that taxable year shall be recaptured in
total. The amount of the recaptured tax
credit shall be added to the taxpayer's tax liability for the taxable year in
which the recapture occurs.
All information in the statement
submitted under this section shall be a public document, except for information
that is otherwise exempt from public disclosure in accordance with chapter 92F.
(j) Recapture of a previously claimed tax credit
shall be required from any taxpayer who received the credit if any of the
following occur:
(1) The projected
qualified expenditures do not materialize;
(2) The qualified
rehabilitation plans do no proceed in a timely manner and in accordance with
the approved plans;
(3) In the case of
the thirty per cent tax credit, less than twenty per cent of the units qualify
as affordable rental housing; or
(4) In the case of
the twenty per cent tax credit, less than ten per cent of the units qualify as
affordable homeownership units.
(k) On an annual basis, the state historic
preservation division, in consultation with the department of taxation, shall
submit a report to the legislature at least twenty days prior to the convening
of each regular legislative session evaluating the effectiveness of the tax
credit. The report shall include
findings and recommendations to improve the effectiveness of the tax credit to
further encourage the rehabilitation of historic properties.
(l) For the purposes of this section:
"Affordable homeownership
units" means housing that meets the guidelines published by the United
States Department of Housing and Urban Development for the year in which the
units are initially offered for sale.
"Affordable rental housing"
means rental housing that meets the guidelines published by the United States
Department of Housing and Urban Development for the year in which the units are
put into service.
"Certified historic
structure" means any structure that is:
(1) Individually
listed in the Hawaii register of historic places or the national register of
historic places;
(2) Located in a
historic district listed in the Hawaii register of historic places or the
national register of historic places and certified by the state historic
preservation division as contributing to the significance of the historic
district; or
(3) A structure
that the state historic preservation division has determined is eligible for
inclusion in the Hawaii register of historic places, and which is listed in
that register by the date of certification by the administrator of the state
historic preservation division in accordance with subsection (f).
"Qualified rehabilitation
expenditures" means any costs incurred for the physical construction
involved in the certified rehabilitation of a certified historic structure;
provided that for projects involving mixed residential and non-residential
uses, at least thirty per cent of the total square footage of the
rehabilitation is placed into service for residential use. "Qualified rehabilitation expenditures"
shall not include the owner's personal labor.
"Qualified staff" means
a staff person meeting the Secretary of the Interior's Professional
Qualification Standards for an architectural historian or historic architect.
"Rehabilitation plan"
means any construction plans and specification for the proposed rehabilitation
of a historic structure in sufficient detail for evaluation of compliance with
the rules adopted by the state historic preservation division.
"Substantial rehabilitation"
means the qualified rehabilitation expenditures of a historic structure that
exceed twenty-five per cent of the assessed value of the structure."
SECTION 2. There is hereby established one temporary position in the state historic preservation division to assist with the establishment and administration of the Hawaii historic preservation income tax credit program. The authorization for this temporary position shall expire at the end of fiscal year .
SECTION 3. The department of land and natural resources shall be authorized to collect reasonable fees to defray the expenses incurred as reviewing and certifying plans pursuant to carrying out section 235- , Hawaii Revised Statutes. Fees collected for these purposes shall be deposited into the Hawaii historic preservation special fund established pursuant to section 6E-16, Hawaii Revised Statutes.
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for one temporary position in the state historic preservation division to assist with the establishment and administration of the Hawaii historic preservation income tax credit program pursuant to this Act.
The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.
SECTION 5. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Historic Preservation; Rehabilitation; Tax Credit; Appropriation
Description:
Establishes a historic preservation income tax credit. Appropriates funds for one temporary position to assist with the establishment and administration of the Hawaii historic preservation income tax credit program. Takes effect 7/1/2050. (SD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
