BackgroundSpeaker of the Assembly, Toni Atkins (D-78) of San Diego introduced legislation for a California Historic Rehabilitation Tax Credit to benefit economic development of properties on or eligible for the State or Federal Register of Historic Places.
“The Economic Development and State Historic Tax Credit Act” (AB 1999) introduced during the 2014 legislative session, is sponsored by a broad-based coalition under the leadership of the California Preservation Foundation and the California Chapter of the American Institute of Architects.
AB 1999 was amended in the Senate Governance and Finance Committee on July 2, 2014. Changes to the bill included a reduction in the annual aggregate cap to $80 million, an increase in the sunset period from 5 to 7 years and a reduction in the percentage of the tax credit from 25% to 20%.
Proposed features of the bill include:
The total $80 million, plus the unused allocation tax credit for the preceding year.
The credit will take effect on and after January 1, 2015 and will terminate before January 1, 2023.
If passed, this bill will: