Florida House approves tax credit for historic structure rehabilitation

The Florida House of Representatives has introduced House Bill 923, a significant piece of legislation aimed at promoting the rehabilitation of historic structures across the state. Proposed on February 24, 2025, this bill seeks to provide a tax credit to property owners who invest in restoring certified historic buildings, thereby encouraging preservation efforts and boosting local economies.

The main provision of HB 923 allows for a tax credit equal to 20 percent of the total qualified expenses incurred in rehabilitating a certified historic structure. To qualify, the structure must be approved by the National Park Service for the federal historic rehabilitation tax credit. This initiative is set to take effect on January 1, 2026, and is designed to incentivize property owners to undertake costly restoration projects that might otherwise be financially unfeasible.

One of the key aspects of the bill is the cap on tax credits, which limits the amount a taxpayer can receive to $2.5 million for a single project, even if the credits are accrued over multiple tax years. This provision aims to ensure that the benefits of the program are distributed fairly while still encouraging substantial investment in historic preservation.

Supporters of HB 923 argue that the bill will not only help preserve Florida's rich architectural heritage but also stimulate local economies by attracting tourism and creating jobs in the construction and restoration sectors. By revitalizing historic neighborhoods, the bill could enhance property values and foster community pride.

However, the bill has faced some opposition. Critics express concerns about the potential loss of tax revenue for the state, arguing that the financial benefits may not outweigh the costs associated with the tax credits. Additionally, there are worries about the equitable distribution of funds, as larger projects may disproportionately benefit from the tax incentives.

As the bill moves through the legislative process, its implications for Florida's historic preservation efforts and local economies will be closely monitored. Experts suggest that if passed, HB 923 could serve as a model for similar initiatives in other states, highlighting the importance of balancing economic growth with the preservation of cultural heritage.

In conclusion, House Bill 923 represents a proactive step towards safeguarding Florida's historic structures while simultaneously fostering economic development. As discussions continue, the outcome of this legislation could have lasting effects on communities throughout the state, shaping the landscape of historic preservation for years to come.