SB 10

Under current law, a person who owns an income-producing historic building

may claim a federal income tax credit that is equal to 20 percent of certain costs to

rehabilitate the historic building. To claim the credit, the building must be listed,

or be eligible for listing, on the national register of historic places or located in certain

national, state, or local historic districts, and the rehabilitation work must comply

with standards established by the secretary of the interior.

Under current law, a person who may claim the federal income tax credit for

rehabilitating an income-producing historic building may also claim a state income

tax or franchise tax credit that is equal to 5 percent of certain costs to rehabilitate

the historic building. To claim the credit, the person must include with the person's

tax return evidence that the secretary of the interior approved the rehabilitation

work before the rehabilitation work began.

Under this bill, a person may claim the state income and franchise tax credit

for rehabilitating an income-producing historic building if the person includes with

the person's tax return evidence that the state historic preservation officer

recommended the rehabilitation work for approval by the secretary of the interior

before the rehabilitation work began and that the rehabilitation was approved by the

secretary of the interior.

Under current law, each partner in a partnership or member of a limited

liability company is allocated a portion of any tax credit that the partnership or

limited liability company may claim, including the credit for rehabilitating a historic

building, based on each partner's or member's ownership interest. Under this bill,

a partner or member is allocated a portion of the tax credit for rehabilitating a

historic building in a manner specified in an agreement with the other partners or

members.