Bill Text: NC S202 | 2015-2016 | Regular Session | Amended

North Carolina Senate Bill 202 (Prior Session Legislation)

Bill Title: Reenact Preservation Rehab Tax Credits

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2015-03-18 - Re-ref Com On Finance [S202 Detail]

Download: North_Carolina-2015-S202-Amended.html

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2015

S 1

SENATE BILL 202

Short Title: Reenact Preservation Rehab Tax Credits.		(Public)
Sponsors:	Senators Lowe (Primary Sponsor); Foushee, J. Jackson, Smith, Van Duyn, Waddell, and Woodard.
Referred to:	Rules and Operations of the Senate.

March 10, 2015

A BILL TO BE ENTITLED

AN ACT to reenact the rehabilitation tax credits.

The General Assembly of North Carolina enacts:

PART I. MILL REHABILITATION TAX CREDIT

SECTION 1.(a) Article 3H of Subchapter I of Chapter 105 of the General Statutes is reenacted as it existed immediately before its repeal and reads as rewritten:

"Article 3H.

"Mill Rehabilitation Tax Credit.

"§ 105‑129.70. Definitions.

The following definitions apply in this Article:

�

"§ 105‑129.71. Credit for income‑producing rehabilitated mill property.

(a) Credit. � A taxpayer who is allowed a credit under section 47 of the Code for making qualified rehabilitation expenditures of at least three million dollars ($3,000,000) with respect to a certified rehabilitation of an eligible site is allowed a credit equal to a percentage of the expenditures that qualify for the federal credit. The credit may be claimed in the year in which the eligible site is placed into service. When the eligible site is placed into service in two or more phases in different years, the amount of credit that may be claimed in a year is the amount based on the qualified rehabilitation expenditures associated with the phase placed into service during that year. In order to be eligible for a credit allowed by this Article, the taxpayer must provide to the Secretary a copy of the eligibility certification and the cost certification. The amount of the credit is as follows:

(1) For an eligible site located in a development tier one or two area, determined as of the date of the eligibility certification, the amount of the credit is equal to forty percent (40%) of the qualified rehabilitation expenditures.

(2) For an eligible site located in a development tier three area, determined as of the date of the eligibility certification, the amount of the credit is equal to thirty percent (30%) of the qualified rehabilitation expenditures.

�

"§ 105‑129.72. Credit for nonincome‑producing rehabilitated mill property.

(a) Credit. � A taxpayer who is not allowed a federal income tax credit under section 47 of the Code and who makes rehabilitation expenses of at least three million dollars ($3,000,000) with respect to a certified rehabilitation of an eligible site is allowed a credit equal to a percentage of the rehabilitation expenses. The entire credit may not be taken for the taxable year in which the property is placed in service, but must be taken in five equal installments beginning with the taxable year in which the property is placed in service. When the eligible site is placed into service in two or more phases in different years, the amount of credit that may be claimed in a year is the amount based on the rehabilitation expenses associated with the phase placed into service during that year. In order to be eligible for a credit allowed by this Article, the taxpayer must provide to the Secretary a copy of the eligibility certification and the cost certification. For an eligible site located in a development tier one or two area, determined as of the date of the eligibility certification, the amount of the credit is equal to forty percent (40%) of the rehabilitation expenses. No credit is allowed for a site located in a development tier three area.

�

"§ 105‑129.73. Tax credited; cap.

(a) Taxes Credited. � The credits allowed by this Article may be claimed against the franchise tax imposed under Article 3 of this Chapter, the income taxes imposed under Article 4 of this Chapter, or the gross premiums tax imposed under Article 8B of this Chapter. The taxpayer may take the credits allowed by this Article against only one of the taxes against which it is allowed. The taxpayer must elect the tax against which a credit will be claimed when filing the return on which it is claimed. This election is binding. Any carryforwards of the credit must be claimed against the same tax.

(b) Cap. � A credit allowed under this Article may not exceed the amount of the tax against which it is claimed for the taxable year reduced by the sum of all credits allowed, except payment of tax made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding nine years.

"§ 105‑129.74. Coordination with Article 3D of this Chapter.

A taxpayer that claims a credit under this Article may not also claim a credit under Article 3D of this Chapter with respect to the same activity. The rules and fee schedule adopted under G.S. 105‑129.36A apply to this Article.

"§ 105‑129.75. Sunset.

This Article expires January 1, ~~2015,~~2021, for rehabilitation projects for which an application for an eligibility certification is submitted on or after that date.

"§ 105‑129.75A. Report.

The Department must include in the economic incentives report required by G.S. 105‑256 the following information itemized by taxpayer:

(1) The number of taxpayers that took the credits allowed in this Article.

(2) The amount of rehabilitation expenses and qualified rehabilitation expenditures with respect to which credits were taken.

(3) The total cost to the General Fund of the credits taken."

SECTION 1.(b) This Part is effective when it becomes law and applies to rehabilitation projects for which an application for eligibility certification is submitted on or after that date.

PART II. HISTORIC REHABILITATION TAX CREDITS

SECTION 2.(a) Article 3D of Subchapter I of Chapter 105 of the General Statutes is reenacted as it existed immediately before its repeal and reads as rewritten:

"Article 3D.

"Historic Rehabilitation Tax Credits.

"§ 105‑129.35. Credit for rehabilitating income‑producing historic structure.

(a) Credit. � A taxpayer who is allowed a federal income tax credit under section 47 of the Code for making qualified rehabilitation expenditures for a certified historic structure located in this State is allowed a credit equal to twenty percent (20%) of the expenditures that qualify for the federal credit. If the certified historic structure is a facility that at one time served as a State training school for juvenile offenders, the amount of the credit is equal to forty percent (40%) of the expenditures that qualify for the federal credit. To claim the credit allowed by this subsection, the taxpayer must provide a copy of the certification obtained from the State Historic Preservation Officer verifying that the historic structure has been rehabilitated in accordance with this subsection.

�

"§ 105‑129.36. Credit for rehabilitating nonincome‑producing historic structure.

(a) Credit. � A taxpayer who is not allowed a federal income tax credit under section 47 of the Code and who makes rehabilitation expenses for a State‑certified historic structure located in this State is allowed a credit equal to thirty percent (30%) of the rehabilitation expenses. If the certified historic structure is a facility that at one time served as a State training school for juvenile offenders, the amount of the credit is equal to forty percent (40%) of the expenditures that qualify for the federal credit. To qualify for the credit, the taxpayer's rehabilitation expenses must exceed twenty‑five thousand dollars ($25,000) within a 24‑month period. To claim the credit allowed by this subsection, the taxpayer must provide a copy of the certification obtained from the State Historic Preservation Officer verifying that the historic structure has been rehabilitated in accordance with this subsection.

�

"§ 105‑129.37. Tax credited; credit limitations.

(a) Tax Credited. � The credits provided in this Article are allowed against the income taxes levied in Article 4 of this Chapter.

(b) Credit Limitations. � The entire credit may not be taken for the taxable year in which the property is placed in service but must be taken in five equal installments beginning with the taxable year in which the property is placed in service. Any unused portion of the credit may be carried forward for the succeeding five years. A credit allowed under this Article may not exceed the amount of the tax against which it is claimed for the taxable year reduced by the sum of all credits allowed, except payments of tax made by or on behalf of the taxpayer.

�

"§ 105‑129.38. Report.

The Department must include in the economic incentives report required by G.S. 105‑256 the following information itemized by taxpayer:

(1) The number of taxpayers that took the credits allowed in this Article.

(2) The amount of rehabilitation expenses and qualified rehabilitation expenditures with respect to which credits were taken.

(3) The total cost to the General Fund of the credits taken.

"§ 105‑129.39. Sunset.

This Article expires for qualified rehabilitation expenditures and rehabilitation expenses incurred on or after January 1, ~~2015.~~2021."

SECTION 2.(b) This Part is effective when it becomes law and applies to qualified rehabilitation expenditures and rehabilitation expenses incurred on or after that date.