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SS#2/SCS/SB 590 - This act modifies several provisions relating to historic buildings. Currently, the Department of Economic Development (DED) shall not approve tax credits for the rehabilitation of historic structures which, in the aggregate, exceed $140 million, increased by any amount of tax credits for which approval shall be rescinded for any reason. For each fiscal year beginning on or after July 1, 2018, the act reduces the aggregate cap to $90 million. DED may authorize up to an additional $30 million in Historic Preservation tax credits above the $90 million cap provided that any such tax credits are authorized solely for projects located in a qualified census tract, which is defined as a census tract with a 30% poverty rate or higher as determined by a map published by DED, as described in the act. If the $90M cap and the $30M supplemental cap are both authorized in a fiscal year, the $90M cap shall be adjusted by the percent increase in inflation. Only one such adjustment shall be made for each instance in which the inflation adjustment is triggered. (Section 253.550) This provision is similar to a provision contained in SCS/SB 6 (2017) and SB 1112 (2016). This act also modifies the Historic Preservation Tax Credit by requiring DED to consider additional factors prior to determining whether a credit shall be awarded, including the projected net fiscal benefit of the project, the overall size and quality of the project, the level of economic distress in the area, and input from the local municipality as to the importance of the project to the municipality. An applicant shall also show proof of the necessary financing to complete the project. (Section 253.559) This act requires that a taxpayer receiving approval for tax credits shall commence rehabilitation within nine months, rather than two years, of the date of approval. (Section 253.559.7) Current law allows DED to charge a fee of 2.5% on the amount of tax credits issued by the Department. This act allows the Department to charge a fee of 4% on the amount of Historic Preservation tax credits issued by the Department. 37.5% of the revenue generated by the 4% fee rate shall be appropriated from the Economic Development Advancement Fund for business recruitment and marketing. This act contains an emergency clause. JOSHUA NORBERG
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