Summary of Senate Bill 190

Governor Ehrlich s • Legislative Initiatives Economic & Community Development Initiatives Heritage Structure Rehabilitation Tax Credit Program last fall, Governor Ehrlich named seventeen individuals to the Task Force on the Heritage Structure Rehabilitation Tax Credit Program. The Task Force examined the seven-year legislative and administrative history of the Tax Credit Program in terms of its performance in promoting economic development through historic rehabilitations. This evaluation addressed whether the Tax Credit Program generated a revenue loss or gain to the State and, if so, to what extenr, the direct and indirect economic benefits of the Program; and whether the Program could proceed under a direct grant program. After consideration of available data on the Program's direct and indirect economic benefits to the State, the Task Force determined that projects receiving tax credits generally returned the State's investment of tax credits within one year. It was also determined that projects continued to generate revenue to the State and local ... governments well after the project was completed. Based on the Task Force's recommendations. Governor Ehrlich is recommending the following amendments to the Heritage Structure Rehabilitation Tax Credit Program: • Establishes January 1 , 201 0 as program sunset date. • Adopts changes recommended by the Comptroller regarding claiming of rax credits and audits. • Authorizes the Director to charge fees for application reviews. • Prohibits certifications for projects completed or substantially completed prior to application. Commercial Projects: • Creates annual tax credit cap of $30 million for commercial projects. • Creates time limit for completion and submittal of Request for Certification of Completed Rehabilitation (Part 3). • Removes requirement that rehabilitations of multiple structures that are functionally related be viewed Owner-occupied Residential Projects: • Create a per-project tax credit cap of $50,000 for owner-occupied residential projects.