2018 Session

Budget Amendments - HB30 (Member Request)

Chief Patron: Miyares
Expand Historic Rehab Tax Credits for Schools (language only)

Item 3-5.16 #1h

Item 3-5.16 #1h

Adjustments and Modifications to Tax Collections
Historic Rehabilitation Tax Credit

Page 469, after line 14, insert:


"Notwithstanding § 58.1-339.2 or any other provision of law, effective for taxable years beginning on or after January 1, 2018, the eligibility for the Historic Rehabilitation Tax Credit is expanded to include any project rehabilitating property for new use as a school.  Further, eligibility for the credit applies regardless of whether the person who incurs the expenses owns the building."


(This amendment reflects the provisions of House Bill 1363, 2018 Session of the General Assembly, which provides that a project may qualify as eligible for the state historic rehabilitation tax credit if it involves rehabilitating property for new use as a school. Current law requires projects to be used either for their historic purpose or for a new use that requires minimal change to the defining characteristics of the building. The bill also provides that for a project rehabilitating a school or a structure to be used as a school expenses incurred in such project shall be eligible for the credit regardless of whether the person who incurs the expenses owns the building. The bill provides that a building qualifies as a historic structure if it is a public school in a school division in which at least half the schools receive funding pursuant to Title I of the federal Elementary and Secondary Education Act. The bill provides that if a project rehabilitates a school, the project qualifies as a material rehabilitation if it costs at least 10 percent of the school's assessed value. Under current law, projects generally must cost at least 50 percent of the assessed value of a building to qualify.)