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S.F. No. 1175 - Historic Structure Rehabilitation Credit Modifications
 
Author: Senator Kari Dziedzic
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: March 19, 2013



 

Section 1.  [Definitions]  Taxpayers must be eligible for the federal historic rehabilitation structure credit in order to be eligible for the Minnesota credit.  This section references the definitions of “federal credit," placed in service,” and “qualified rehabilitation expenditures” to the meanings given in the Internal Revenue Code.  Effective the day following final enactment.

Section 2.  [Applications; Allocations]  Removes the $5,000 cap on the application fee the State Historic Structure Preservation Office may collect.  The amount is left blank in this bill.  Replaces the term “expenses” with “expenditures” for purposes of the historic structure rehabilitation credit.  Requires the Office to notify the developer of a project of its eligibility determination in writing.  Provides for a decision of the Office regarding eligibility for a state credit or grant to be challenged as a contested case under the state administrative procedure statutes.  Updates the references to the Commissioner of Revenue in the statute for consistency with references throughout the income tax chapter.  Effective the day following final enactment.

Section 3.  [Credit certificates; grants]  Provides that assignment of credit allocation certificates issued by the State Historic Preservation Office is not valid unless the assignee notifies the Commissioner of Revenue within 30 days that the assignment is made.  Requires the Commissioner to prescribe the forms necessary for such notification.  Provides that a credit issued to a partnership, LLC taxed as a partnership, S corporation, or multiple owners of property passed through pro rata to partners, members, shareholders, or owners respectively, is not an assignment of a credit.  Allows a grant agreement between the Office and a grant recipient to be issued to another individual or entity.  Effective the day following final enactment. 

Section 4.  [Partnerships; multiple owners]  Allows credits granted to corporate entities to be passed through to partners, members, shareholders, or owners of a corporate entity according to any executed agreement between relevant parties.  Effective the day following final enactment.

Section 5.  [Sunset]  Extends the availability of the credit by five years, through fiscal year 2022 (June 30, 2021) and extends the State Historic Preservation Office’s authority to issue credit certificates based on allocation certificates issued before fiscal year 2023 (June 30, 2022) through calendar year 2025.  Extends the annual reporting requirement through the earlier of 2026, or the year following the year in which all allocation certificates have been canceled or resulted in issuance of credit certificates.  Effective the day following final enactment. 

Section 6.  [Effective date]  Clarifies the effective date of the credit to make the credit effective for rehabilitation expenditures first paid by the developer or taxpayer after May 1, 2010, and for rehabilitation that occurs after May 1, 2010, provided that the application submitted for credit eligibility is submitted before the project is placed in service.  Effective the day following final enactment and applies retroactively for certified historic structures placed in service after May 1, 2010, but no credit certificates allowed under the change to this effective date clarification may be issued until July 1, 2013.

NBP:dv

 

 

 
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