The Senate Ways and Means and Economic Development Committee took additional testimony Tuesday on two bills that would provide tax credits for rehabilitation.
SB60 HISTORIC BUILDINGS (SCHURING K) Nonrefundable tax credits for rehabilitating historic buildings.
Mike Suver, deputy director of legislative affairs for the Department of Development, said he agrees with the sponsor on the need of an incentive that would spur reinvestment in the state's urban centers. He said this type of incentive could be the lynch pin for pulling together a uniquely tailored financing package to rehabilitate historic buildings. He said the program could complement the department's Small Cities Downtown Revitalization & Housing Programs administered through the Community Development Division's Office of Housing and Community Partnerships.
He said the credit "could be syndicated" so that additional financing could be attracted to the project.
Jonathon Sandvick, senior vice chair of Heritage Ohio and president of Downtown Ohio, Inc., testified in support of the bill.
Sandvick presented a detailed overview of how a similar tax credit has operated in Missouri and Maryland.
HB149 HISTORIC BUILDING (CALVERT C) Nonrefundable tax credit-rehabilitate historic building.
Rep. Calvert said his bill calls for a tax credit which would be issued by the tax commissioner for the restoration or rehabilitation of a historic building that is listed in the National Register of Historic Buildings, is certified as contributing to a registered historic district, or designated as historic by a certified local government.
The tax credit would be a nonrefundable credit against the corporate franchise tax or personal income tax for an owner of a rehabilitation tax credit certificate. The rehabilitation tax credit certificate would be established by the state Historic Preservation Office and approved by the tax commissioner.
According to Calvert, the bill would allow 20 projects to be eligible for restoration with the following restrictions:
They must be commercial, not residential properties;
The property will be assessed before the restoration begins and again one year after the restoration;
There will be a one-time restriction on the tax credit; and
The credit would equal 25 percent of the dollar amount of the taxpayers qualified rehabilitation expenditures.