| Summary |
Section 1 of the bill modifies the community revitalization grant
program (grant program) by:
•
Including projects that are eligible for funding under the
space to create program administered by the creative
industries division (division) within the office of economic
development (office) as projects intended to be supported
by the grant program;
•
Extending deadlines for the adoption of policies,
procedures, and guidelines for the grant program and for
grant program reporting; and
•
Extending the scheduled repeal of the grant program from
January 1, 2025, to the date on which all money transferred
or otherwise credited to the community revitalization fund
pursuant to this section is expended.
Section 2 creates a new community revitalization income tax
credit (credit), for income tax years commencing on or after January 1,
2026, but before January 1, 2033, in an amount equal to 25% of the
amount of eligible expenditures made by a qualified applicant in
completing an eligible project; except that the office may reduce the
credit percentage for reservations for credits made in any income tax year,
and the maximum amount of the credit for a single project is $3 million.
In addition, the maximum amount of credits that may be reserved during
any calendar year is $16 million. An eligible project is a capital
improvement project within a creative district, a historic district, or a
neighborhood commercial center or a main street that involves the
construction, rehabilitation, conversion, remodeling, or other
improvement of one or more buildings, structures, or facilities for uses
that support creative industries and creative industry workers and that is
approved as an eligible project by the office.
The bill details a process for claiming the credit that requires:
•
The submission by a qualified applicant to the office of an
eligible project plan that includes an estimate of eligible
expenditures;
•
Preliminary and final review and approval of the plan by
the office;
•
Reservation of a credit for the qualified applicant by the
office;
•
Commencement of the eligible project incurrence by the
qualified applicant of a specified minimum portion of the
eligible expenditures within a specified period;
•
Completion of the eligible project;
•
Issuance of a tax credit certificate by the office;
•
Filing of the tax credit certificate by the qualified applicant
with the department of revenue with the qualified
applicant's tax return or informational return; and
•
Recapture of the credit if the eligible project is not used for
a use that makes it an eligible project during a specified
compliance period.
The office is required to annually report to the general assembly
regarding the credit and may, after soliciting advice from the department
of revenue, create and modify policies and procedures as necessary to
implement the credit.
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