Bill Text: HI HR96 | 2014 | Regular Session | Introduced
Bill Title: Historic Preservation Income Tax Credit; DLNR and Dept. of Taxation
Spectrum: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced - Dead) 2014-03-12 - Referred to WAL, FIN, referral sheet 33 [HR96 Detail]
Download: Hawaii-2014-HR96-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.R. NO. |
96 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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HOUSE RESOLUTION
urging the department of land and natural resources and the department of taxation to DRAFT PROPOSED legislation to establish an income tax credit for the rehabilitation or preservation of archaeological, cultural, or historic structures in the state.
WHEREAS, the Hawaii State Constitution recognizes the value of historic places and vests the State with the power to conserve and develop objects and places of historic or cultural interest; and
WHEREAS, the Legislature has declared that it is in the public's interest to engage in a comprehensive program of historic preservation at all levels of government to promote the use and conservation of historic properties for the education, inspiration, and enrichment of its citizens; and
WHEREAS, older buildings make ideal locations for small, independent businesses and start-up companies; and
WHEREAS, sixty cents of every dollar spent at independent businesses remain in the local economy, compared to less than ten cents of every dollar spent at national discounters; and
WHEREAS, preserving and appropriately using historic buildings can enhance community character, provide an alternative to urban sprawl, create jobs, provide affordable housing, encourage heritage tourism, and spur economic development in older neighborhoods and commercial districts; and
WHEREAS, Hawaii is the site of many historical structures and landmarks, making it a destination for heritage tourism and the film industry, both of which create additional jobs for Hawaii residents and added revenue for the State; and
WHEREAS, the rehabilitation of existing infrastructure rather than the building of new infrastructure saves money by making use of existing property; and
WHEREAS, the labor intensive work needed for historic rehabilitation projects creates more jobs than new construction projects because more money is spent on labor than materials; and
WHEREAS, according to a study released by the Historic Hawaii Foundation, a state recoups its investment in rehabilitation tax credits through four primary sources: construction period taxes, real property taxes, plus post-construction sales, and income taxes; and
WHEREAS, national studies have found that historic rehabilitation tax credits create a surge in economic development; and
WHEREAS, thirty-one states have adopted laws creating credits against state taxes to provide incentives for the appropriate rehabilitation of historic buildings; and
WHEREAS, many states that provide a historic rehabilitation tax credit have found that the fiscal return was greater than the state’s foregone tax revenue, often returning three to five times more revenue to the state in new taxes and significant new investment; and
WHEREAS, these states also found that historic rehabilitation tax credits were successful in creating new jobs, increasing loan demand and deposits in local financial institutions, enhancing property values, and generating sales as well as benefiting environmental sustainability, affordable housing, tourism and visitation, and neighborhood revitalization; and
WHEREAS, historic rehabilitation tax credit programs have proved to be successful incentives for rehabilitating older structures and returning them to useful life; and
WHEREAS, tax credit programs for the rehabilitation of historic properties have been used at the federal level and by almost two-thirds of the United States, and although the details of the programs vary by state, preservation tax credits universally have been shown to be effective, especially when coupled with the twenty per cent federal historic tax credit available to income-producing historic properties, such as commercial, office, industrial, and resort properties; and
WHEREAS, most historic rehabilitation tax credit programs include the following basic elements:
(1) Criteria establishing the buildings or structures that qualify for the tax credit;
(2) Standards that ensure proper rehabilitation to preserve the historic and architectural character of the building or structure;
(3) A method for calculating the value of the tax credit awarded, reflected as a percentage of the amount expended on that portion of the rehabilitation work that is approved as a certified rehabilitation;
(4) A minimum amount required to be invested in the rehabilitation; and
(5) A mechanism for administering the program through the appropriate state agency; and
WHEREAS, historic rehabilitation tax credits not only provide economic growth, but also facilitate sustainable growth by encouraging the reuse of natural resources and materials found in rehabilitation projects; now, therefore,
BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2014, that the Department of Land and Natural Resources and the Department of Taxation are requested to draft proposed legislation to establish an income tax credit for the rehabilitation or preservation of archaeological, cultural, or historic structures in the State; and
BE IT FURTHER RESOLVED that the Department of Land and Natural Resources and the Department of Taxation, as part of their proposed legislation to the Legislature, are requested to include a clear and specific definition of the terms "archaeological, cultural, and historic structures" that qualify for the proposed income tax credit; and
BE IT FURTHER RESOLVED that the Department of Land and Natural Resources and the Department of Taxation are requested to submit the proposed legislation to the Legislature no later than twenty days prior to the convening of the Regular Session of 2015; and
BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Land and Natural Resources and the Director of Taxation.
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OFFERED BY: |
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Historic Preservation Income Tax Credit; DLNR and Dept. of Taxation
