Historic rehabilitation; extends tax credit to use for historic school buildings.
Impact
If enacted, HB2109 will modify existing tax credit provisions in the Code of Virginia to include school rehabilitation expenses. Eligible rehabilitation expenses must now either substantially improve a certified historic structure or meet certain standards for school buildings. This change is designed to encourage both private and public investments in school facilities, aiming to safeguard the integrity of historic educational sites while also improving their functionality and safety for students.
Summary
House Bill 2109 introduces an extension of the tax credit program related to the rehabilitation of historic structures, with a specific emphasis on historic school buildings. The bill defines 'historic school buildings' as those that are either certified historic structures or at least 50 years old and used as public schools for students in grades K through 12. The intent of this legislation is to incentivize the renovation and preservation of valuable historic properties, particularly educational institutions, which hold significant cultural and historical importance.
Contention
Debates around HB2109 may arise from differing perspectives on tax incentives for historic renovations. Proponents argue that enhancing tax credits for the rehabilitation of historic schools will not only preserve educational heritage but potentially stimulate local economies through construction and renovation jobs. On the other hand, opponents may express concerns about the fiscal impact on state revenues, questioning whether such tax expenditures will yield sufficient public benefit relative to their cost, especially when state resources are limited.
Extends the date for eligible expenses to qualify for the tax credit for the rehabilitation of historic structures and extends the effectiveness of the credit (Item #19) (EN SEE FISC NOTE GF RV See Note)
An act to amend Section 17053.91 of, and to add and repeal Sections 17053.92 and 23692 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
Establishes the large projects historic rehabilitation tax credit and the "white elephant" housing historic rehabilitation projects tax credit program for qualified rehabilitation expenditures totaling fifty million dollars or more with respect to a certified historic structure that has been vacant, as determined by local code enforcement or other reasonable means, for at least ten of fifteen consecutive years preceding the date of the taxpayer's application for the rehabilitation credit.