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S.B. 31
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7 AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING DEFINITIONS;
8 EXPANDING THE CORPORATE FRANCHISE AND INCOME TAX AND INDIVIDUAL
9 INCOME TAX HISTORIC PRESERVATION CREDITS TO INCLUDE CREDITS FOR
10 COMMERCIAL CERTIFIED HISTORIC BUILDINGS AND COMMERCIAL QUALIFIED
11 HISTORIC BUILDINGS; DELETING THE RESIDENCY REQUIREMENT FOR THE
12 INDIVIDUAL INCOME TAX CREDIT; MAKING TECHNICAL CHANGES; AND
13 PROVIDING FOR RETROSPECTIVE OPERATION.
14 This act affects sections of Utah Code Annotated 1953 as follows:
15 AMENDS:
16 59-7-609, as enacted by Chapter 42, Laws of Utah 1995
17 59-10-108.5, as last amended by Chapter 25, Laws of Utah 1995
18 Be it enacted by the Legislature of the state of Utah:
19 Section 1. Section 59-7-609 is amended to read:
20 59-7-609. Historic preservation credit.
21 (1) As used in this section:
22 (a) "Certified historic building" means a building or structure that:
23 (i) (A) is listed on the National Register of Historic Places; or
24 (B) is listed on the National Register of Historic Places within a three-year period after a
25 taxpayer claims a credit under this section; or
26 (ii) is located in a National Register Historic District; and
27 (iii) the Division of State History has designated as being of significance to the National
28 Register Historic District.
29 (b) "Commercial certified historic building" means a commercial unit that is a certified
30 historic building.
31 (c) "Commercial qualified historic building" means a commercial unit that is a qualified
32 historic building.
33 (d) "Commercial unit" means a building or structure that is primarily used for the purpose
34 of conducting business.
35 (e) "Qualified historic building" means a building that is determined by the Division of
36 State History to meet the age and integrity requirements established by the National Register of
37 Historic Places.
38 (f) (i) "Qualified rehabilitation expenditures" means any amount properly chargeable to
39 the rehabilitation and restoration of the physical elements of a building, including:
40 (A) the historic decorative elements of the building;
41 (B) the upgrading of the structural, mechanical, electrical, or plumbing systems of the
42 building to applicable codes; or
43 (C) notwithstanding Subsection (1)(f)(ii)(E), an expenditure described in Subsection
44 (1)(f)(ii)(E)(II) or (III) if the outbuilding or secondary structure is a:
45 (I) certified historic building; or
46 (II) qualified historic building.
47 (ii) "Qualified rehabilitation expenditures" does not include:
48 (A) an expenditure related to the taxpayer's personal labor;
49 (B) an expenditure related to the cost of acquiring the property;
50 (C) an expenditure attributable to the enlargement of an existing building;
51 (D) if the rehabilitation work is not approved as provided in Subsection (2)(c), an
52 expenditure related to rehabilitation work on a:
53 (I) certified historic building; or
54 (II) qualified historic building;
55 (E) except as provided in Subsection (1)(f)(i)(C), an expenditure attributable to:
56 (I) landscaping or other site features;
57 (II) an outbuilding;
58 (III) a secondary structure; or
59 (IV) an expenditure similar to those described in Subsections (1)(f)(ii)(E)(I) through (III).
60 (g) "Residential" means a building that is:
61 (i) primarily used for residential purposes; and
62 (ii) (A) occupied by the owner of the building; or
63 (B) income producing.
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66 claim the following nonrefundable credits as provided in this section:
67 (i) for taxable years beginning on or after January 1, 1993, an amount equal to 20% of the
68 total amount of the taxpayer's qualified rehabilitation expenditures[
69 taxpayer expends more than $10,000[
70 historic building[
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72 (ii) except as provided in Subsection (2)(b), for taxable years beginning on or after January
73 1, 2000, an amount equal to 20% of the total amount of the taxpayer's qualified rehabilitation
74 expenditures if the taxpayer expends more than $10,000 in connection with a:
75 (A) commercial certified historic building; or
76 (B) commercial qualified historic building; or
77 (iii) a combination of the credits described in Subsections (2)(a)(i) and (ii).
78 (b) (i) Notwithstanding Subsection (2)(a)(ii), the maximum amount of credit that may be
79 claimed or carried forward during a six-year period is $100,000 for all of the qualified
80 rehabilitation expenditures incurred in connection with:
81 (A) each commercial certified historic building; or
82 (B) each commercial qualified historic building.
83 (ii) A six-year period described in Subsection (2)(b)(i):
84 (A) begins on the first day of the first taxable year for which a taxpayer may claim a credit
85 under Subsection (2)(a)(ii); and
86 (B) ends six years after the date described in Subsection (2)(b)(ii)(A).
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88 shall be approved by the State Historic Preservation Office prior to completion of the rehabilitation
89 project as meeting the Secretary of the Interior's Standards for Rehabilitation so that the [
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91 to preserve the historical qualities of the building.
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93 exceeds the taxpayer's tax liability for a taxable year, the taxpayer may [
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96 expenditures.
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98 Act, the commission, in consultation with the Division of State History, shall promulgate rules to
99 implement this section.
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119 Section 2. Section 59-10-108.5 is amended to read:
120 59-10-108.5. Historic preservation credit.
121 (1) As used in this section:
122 (a) "Certified historic building" means a building or structure that:
123 (i) (A) is listed on the National Register of Historic Places; or
124 (B) is listed on the National Register of Historic Places within a three-year period after a
125 taxpayer claims a credit under this section; or
126 (ii) is located in a National Register Historic District; and
127 (iii) the Division of State History has designated as being of significance to the National
128 Register Historic District.
129 (b) "Commercial certified historic building" means a commercial unit that is a certified
130 historic building.
131 (c) "Commercial qualified historic building" means a commercial unit that is a qualified
132 historic building.
133 (d) "Commercial unit" means a building or structure that is primarily used for the purpose
134 of conducting business.
135 (e) "Qualified historic building" means a building that is determined by the Division of
136 State History to meet the age and integrity requirements established by the National Register of
137 Historic Places.
138 (f) (i) "Qualified rehabilitation expenditures" means any amount properly chargeable to
139 the rehabilitation and restoration of the physical elements of a building, including:
140 (A) the historic decorative elements of the building;
141 (B) the upgrading of the structural, mechanical, electrical, or plumbing systems of the
142 building to applicable codes; or
143 (C) notwithstanding Subsection (1)(f)(ii)(E), an expenditure described in Subsection
144 (1)(f)(ii)(E)(II) or (III) if the outbuilding or secondary structure is a:
145 (I) certified historic building; or
146 (II) qualified historic building.
147 (ii) "Qualified rehabilitation expenditures" does not include:
148 (A) an expenditure related to the taxpayer's personal labor;
149 (B) an expenditure related to the cost of acquiring the property;
150 (C) an expenditure attributable to the enlargement of an existing building;
151 (D) if the rehabilitation work is not approved as provided in Subsection (2)(c), an
152 expenditure related to rehabilitation work on a:
153 (I) certified historic building; or
154 (II) qualified historic building; or
155 (E) except as provided in Subsection (1)(f)(i)(C), an expenditure attributable to:
156 (I) landscaping or other site features;
157 (II) an outbuilding;
158 (III) a secondary structure; or
159 (IV) an expenditure similar to those described in Subsections (1)(f)(ii)(E)(I) through (III).
160 (g) "Residential" means a building that is:
161 (i) primarily used for residential purposes; and
162 (ii) (A) occupied by the owner of the building; or
163 (B) income producing.
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166 nonrefundable credits as provided in this section:
167 (i) for taxable years beginning on or after January 1, 1993, an amount equal to 20% of the
168 total amount of the taxpayer's qualified rehabilitation expenditures[
169 taxpayer expends more than $10,000[
170 historic building[
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172 (ii) except as provided in Subsection (2)(b), for taxable years beginning on or after January
173 1, 2000, an amount equal to 20% of the total amount of the taxpayer's qualified rehabilitation
174 expenditures if the taxpayer expends more than $10,000 in connection with a:
175 (A) commercial certified historic building; or
176 (B) commercial qualified historic building; or
177 (iii) a combination of the credits described in Subsections (2)(a)(i) and (ii).
178 (b) (i) Notwithstanding Subsection (2)(a)(ii), the maximum amount of credit that may be
179 claimed or carried forward during a six-year period is $100,000 for all of the qualified
180 rehabilitation expenditures incurred in connection with:
181 (A) each commercial certified historic building; or
182 (B) each commercial qualified historic building.
183 (ii) A six-year period described in Subsection (2)(b)(i):
184 (A) begins on the first day of the first taxable year for which a taxpayer may claim a credit
185 under Subsection (2)(a)(ii); and
186 (B) ends six years after the date described in Subsection (2)(b)(ii)(A).
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188 shall be approved by the State Historic Preservation Office prior to completion of the
189 rehabilitation project as meeting the Secretary of the Interior's Standards for Rehabilitation so that
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191 taxpayer in order to preserve the historical qualities of the building.
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193 exceeds the taxpayer's tax liability for a taxable year, the taxpayer may [
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195 five [
196 expenditures.
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198 Act, the commission, in consultation with the Division of State History, shall promulgate rules to
199 implement this section.
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219 Section 3. Retrospective operation.
220 This act has retrospective operation for taxable years beginning on or after January 1, 2000.
Legislative Review Note
as of 1-11-00 3:51 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.