Monday, April 11, 2005

HB 26: Historic Rehabilitation Tax Credit

H.B. 26, P.N. 29 (FRANKEL) This would create the Historic Rehabilitation and Economic Revitalization Tax Credit Act.
The Community and Economic Development Department would be able to award tax credits for 20% of qualified rehabilitation expenses to a historic commercial site. A maximum of $20 million annually in tax credits would be awarded. If the total amount of credits awarded exceeds this maximum amount, the excess award would be carried over into the next year with these funds made available in addition to another $20 million of maximum funds being made available. No more than $4 million would be awarded to any one applicant. No more than 20% of the total annual allocation of credits could be made within the same political subdivision. The Pennsylvania Commission Historical and Museum Commission would certify and prioritize properties eligible for the tax credit and would determine if any covenants are violated. This tax credit could be carried forward for 15 taxable years. The penalty for a covenant breach would be equal to the recapture percentage of the awarded credit.


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