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Senate advances historic-preservation tax credit despite fiscal concerns
Summary
Senate Bill 165 would create a 20% tax credit (for qualified rehabilitation costs over $10,000) for certified historic buildings; senators debated a $450,000 fiscal note and possible amendments to narrow scope; bill advanced to third reading, reported as 18–7.
Senate Bill 165, proposing tax incentives to encourage rehabilitation of certified historic properties, was presented on the Senate floor and advanced to third reading on Feb. 12, 1992.
Sponsor Senator Beatty described SB 165 as an incentive program allowing a tax credit equal to 20% of qualified rehabilitation expenditures costing more than $10,000 for certified historic buildings (those listed on the National Register of Historic Places or designated by the Division of State History). The bill excludes certain expenditures (accelerated depreciation, acquisition costs, enlargement, landscaping and outbuildings) and requires preliminary approval from the State Historic Society to preserve historic integrity. The sponsor said the credit was intended to protect historic neighborhoods and could apply to both residential and commercial properties.
Several senators raised the fiscal note, which the sponsor cited as an estimated $450,000 reduction in the Uniform School Fund. Senator Howell and others questioned the assumption that increased property valuations and subsequent tax revenue would offset the cost; Senator Judkins argued restorations would happen without the credit and cautioned against targeted tax benefits. The sponsor proposed amendments—reducing the credit from 20% to 10% and potentially limiting the credit to residential properties—to address fiscal concerns.
After debate and an announced conflict-of-interest statements by members with ties to historic restoration, the clerk reported SB 165 as passing out to the third-reading calendar with 18 ayes and 7 nays.
