HB 504: Historic Rehabilitation Tax Credits

H.B. 504, P.N. 542 (KILLION) This would amend the Tax Reform Code, Act 2 of 1971, P.L. 6.
This would exempt from sales and use tax tangible personal property or services purchased for the rehabilitation or restoration of a historic homesite. This exemption would not apply towards the net gain on the sale of such a site. A tax credit for 20% of the amount spent on such rehabilitation or restoration, where the Pennsylvania Historical and Museum Commission determines the work has been satisfactorily completed, would be provided. An unused tax credit could be carried forth for no more than five taxable years. A total of $5 million of tax credits per year would be offered, and these would be awarded on a pro rata basis should the amount of credits allocated exceed $5 million in one year. A person who breaches the term of this tax credit covenant would be penalized by the amount of the tax credit provided.
A tax credit for 20% of the amount of rehabilitation expenses spent on certified rehabilitation of a historic commercial site would be provided. An unused tax credit could be carried forth for no more than 15 taxable years. No more than $20 million per year of such tax credit would be provided, and these would be awarded on a pro rata basis should the amount of credits allocated exceed $20 million in one year. No single application for such a tax credit could receive more than $4 million in tax credit. No more than one fifth of these credits may be awarded within any single political subdivision during the same year. The breach of a tax credit covenant would result in a penalty equal to the recapture percentage of the awarded tax credit.
The denial of a tax credit could be appealed for judicial review.