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Committee backs due pass for hotel restoration tax credit aimed at small and historic properties
Summary
The House committee gave HB506 a due pass after testimony that the credit would target small and historic hotels, require minimum room counts and minimum renovation levels, and partner with the tourism department to verify economic impact.
The House committee voted to give House Bill 506 a due pass after proponents said the measure would help small and historic hotels invest in renovations and recovery.
The bill would create a tax credit to support restoration and rehabilitation of qualifying hotels, with proponents saying it targets smaller and older properties that need investment. Melissa Mitten, senior director of state and local government affairs for the American Hotel and Lodging Association, testified in favor, saying, “I appreciate the opportunity to testify and support HB 506 today. Thank you for your time. I'll keep it short.”
Supporters told the committee the state’s hotel industry employs nearly 53,000 residents and pays more than $2.3 billion in wages and salaries, and that HB506 would allow property owners to invest in renovations. Representative Matthews asked whether the program would be limited to “viable” hotels or whether it could subsidize properties in low-demand locations; Mitten said the measure requires a qualifying hotel to have at least 15 guest rooms and to commit to renovating at least 40 percent of rooms. She said the bill was crafted to help small towns such as Silver City and Santa Rosa and to dovetail with Route 66 tourism efforts. “The tourism department’s process would involve overseeing their application and having them determine and prove the economic impact and the tourism impact of that renovation,” Mitten said.
Representative Murphy moved for a due pass and noted he would discuss a potential amendment about uniformity of standards for small communities outside the hearing. The committee roll call showed 8 votes in favor and 0 opposed; the chair announced the motion carried.
The bill was advanced to the next stage as a due pass recommendation; committee members and proponents indicated willingness to continue refining qualifying thresholds and standards before floor action.
HB506 provenance: testimony opening at transcript time 538.33; final tally announced at transcript time 1291.16.
