Bill > AB178

Introduced Session

Legislative Counsel's Digest: Section 7 of this bill authorizes a person who undertakes the rehabilitation of a 1 qualified historic building to apply to the Department of Taxation for a certificate 2 of transferable tax credits. Under section 5 of this bill, a building is a qualified 3 historic building if the building is: (1) at least 50 years of age; (2) nonresidential 4 real property as defined in certain federal laws authorizing tax credits for the 5 rehabilitation of historic buildings; and (3) is listed or located in a historic district 6 that is listed in the National Register of Historic Places, the State Register of 7 Historic Places or certain local historic districts. Section 7 requires the Department 8 to approve an application for transferable tax credits for the rehabilitation of a 9 historic building if, in addition to certain other requirements, the applicant incurred 10 certain eligible costs and expenses of at least $20,000 in connection with the 11 rehabilitation of the building and the Office of Historic Preservation of the State 12 Department of Conservation and Natural Resources determines that the building is 13 a qualified historic building and certifies that the rehabilitation of the building 14 satisfies the standards for the rehabilitation of historic buildings set forth in certain 15 federal regulations. Section 7 also provides that an applicant is not eligible for 16 additional transferable tax credits if the applicant has been issued two or more 17 certificates of transferable tax credits during the 2 years before the person s 18 application. Under section 7, the transferable tax credits may be applied to the 19 modified business tax, gaming license fee or the insurance premium tax, or any 20 combination thereof. 21 Sections 8 and 9 of this bill provide for the calculation of the amount of 22 transferable tax credits and duration for which such transferable tax credits are 23 valid. Under section 8, the amount of transferable tax credits issued to an applicant 24 must usually be equal to 20 percent of the eligible costs and expenses incurred by 25 the applicant for the rehabilitation, but this must increase to 25 percent for the 26 rehabilitation of an historic building that is part of certain state or federal programs 27 or 30 percent if the rehabilitated building provides affordable housing. In any event, 28 the tax credits must not exceed $1 million per qualified rehabilitation. Section 8 29 also provides that the Department may not approve more than $10 million in new 30 transferable tax credits each year. Section 9 provides that the transferable tax 31 credits expire 5 years after the date on which the credits are issued. 32 Section 10 of this bill requires the Department to meet certain notice 33 requirements before holding a hearing to approve or disapprove an application for 34 transferable tax credits. Section 11 of this bill requires an applicant to repay any 35 portion of transferable tax credits to which the applicant is not entitled if the 36 applicant becomes ineligible for the tax credits after receiving the tax credits. 37 Sections 2, 3, 4, 6 and 12 of this bill make conforming changes. 38 SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 360 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 to 12, inclusive, of this 2 act. 3 Sec. 2. As used in sections 2 to 12, inclusive, of this act, 4 unless the context otherwise requires, the words and terms defined 5 in sections 3 to 6, inclusive, of this act have the meanings ascribed 6 to them in those sections. 7 Sec. 3. 1. Eligible costs and expenses means any amount 8 properly chargeable to the capital account of a qualified historic 9 building in connection with a qualified rehabilitation. 10 2. The term does not include: 11 (a) The costs of acquiring any building or interest therein; or 12 (b) Any expenditures attributable to the enlargement of an 13 existing building. 14 Sec. 4. Office means the Office of Historic Preservation of 15 the State Department of Conservation and Natural Resources. 16 Sec. 5. Qualified historic building means a building in this 17 State that: 18 1. Is at least 50 years of age; 19 2. Is nonresidential real property as defined in 26 U.S.C. 1 168(e)(2)(B); and 2 3. Is: 3 (a) Listed individually in the National Register of Historic 4 Places pursuant to 54 U.S.C. 302102; 5 (b) Listed individually in the State Register of Historic Places 6 pursuant to NRS 383.085; 7 (c) Located in an historic district listed in the National 8 Register of Historic Places and certified by the Secretary of the 9 Interior as contributing to the historic significance of the district 10 pursuant to 36 C.F.R. 67.5; 11 (d) Located in an historic district listed in the State Register of 12 Historic Places pursuant to NRS 383.085 and is certified by the 13 Office as contributing to the historic character of the district; or 14 (e) Listed individually or as part of a local historic district 15 established pursuant to NRS 384.005 by a local government 16 certified pursuant to 54 U.S.C. 302502. 17 Sec. 6. Qualified rehabilitation means the rehabilitation of 18 a qualified historic building that the Office has certified as 19 meeting the standards for rehabilitation as defined in 36 C.F.R. 20 67.7. 21 Sec. 7. 1. A person who undertakes a qualified 22 rehabilitation may apply to the Department for a certificate of 23 eligibility for transferable tax credits for any eligible costs and 24 expenses. The transferable tax credits may be applied to: 25 (a) Any tax imposed by chapter 363A or 363B of NRS; 26 (b) The gaming license fees imposed by the provisions of 27 NRS 463.370; 28 (c) Any tax imposed pursuant to chapter 680B of NRS; or 29 (d) Any combination of the fees and taxes described in 30 paragraphs (a), (b) and (c). 31 2. Upon receipt of an application for a certificate of eligibility 32 for transferable tax credits pursuant to this section, the 33 Department shall forward the application to the Office, which 34 shall determine whether the building for which the applicant will 35 undertake a qualified rehabilitation is a qualified historic 36 building. The Office shall notify the Department of its 37 determination. If the Office determines that the building for which 38 the applicant will undertake a qualified rehabilitation is a 39 qualified historic building, the Department shall: 40 (a) Approve the application for a certificate of eligibility for 41 transferable tax credits if the Department finds that the person 42 undertaking the qualified rehabilitation qualifies for the 43 transferable tax credits pursuant to subsection 3; and 44 (b) Calculate the estimated amount of the transferable tax 1 credits pursuant to section 8 of this act. 2 3. To be eligible for transferable tax credits pursuant to this 3 section, a person must: 4 (a) Submit an application that meets the requirements of 5 subsection 4; 6 (b) Provide proof satisfactory to the Office that the 7 rehabilitation of the qualified historic building is a qualified 8 rehabilitation; 9 (c) Provide proof satisfactory to the Department that the 10 applicant has incurred eligible costs and expenses of $20,000 or 11 more in undertaking the qualified rehabilitation; 12 (d) Not later than 90 days after the date on which the qualified 13 historic building was first placed in service after the qualified 14 rehabilitation, provide the Department with: 15 (1) A certificate issued by the Office that the rehabilitation 16 of the qualified historic building is a qualified rehabilitation; and 17 (2) An itemized report of eligible costs and expenses 18 incurred by the applicant and documentation to establish the 19 amount of the eligible costs and expenses incurred by the 20 applicant; 21 (e) Not have been issued two or more certificates of 22 transferable tax credits during the 2 years immediately preceding 23 the date of the person s application; and 24 (f) Meet any other requirements prescribed by regulation 25 pursuant to this section. 26 4. An application submitted pursuant to subsection 3 must 27 contain: 28 (a) The name of the applicant; 29 (b) A description of the qualified historic building for which 30 the applicant will undertake a qualified rehabilitation; 31 (c) A summary of the budgeted expenditures for the qualified 32 rehabilitation; 33 (d) A summary of the eligible costs and expenses; and 34 (e) Any other information required by regulations adopted 35 pursuant to subsections 8 and 9. 36 5. If the Department approves an application for a certificate 37 of eligibility for transferable tax credits pursuant to this section, 38 the Department shall immediately forward a copy of the certificate 39 of eligibility which identifies the estimated amount of the tax 40 credits available pursuant to section 8 of this act, to: 41 (a) The applicant; and 42 (b) The Nevada Gaming Control Board. 43 6. Within 60 business days after receipt of the certification 44 and the report and documentation provided pursuant to paragraph 45 (d) of subsection 3 and any other accountings or other 1 information required by the Department, the Department shall 2 make a final determination of whether a certificate of transferable 3 tax credits will be issued. If the Department determines that all 4 other requirements for the transferable tax credits have been met, 5 the Department shall notify the applicant that the transferable tax 6 credits will be issued. Within 30 days after the receipt of the notice, 7 the applicant shall make an irrevocable declaration of the amount 8 of transferable tax credits that will be applied to each fee or tax set 9 forth in subsection 1, thereby accounting for all of the credits 10 which will be issued. Upon receipt of the declaration, the 11 Department shall issue to the applicant a certificate of 12 transferable tax credits in the amount approved by the Department 13 for the fees or taxes included in the declaration of the applicant. 14 The applicant shall notify the Department upon transferring any 15 of the transferable tax credits. The Department shall notify the 16 Nevada Gaming Control Board of all transferable tax credits 17 issued, segregated by each fee or tax set forth in subsection 1, the 18 amount of any transferable tax credits transferred and the person 19 or entity to whom the tax credits were transferred. 20 7. An applicant for transferable tax credits pursuant to this 21 section shall, upon request of: 22 (a) The Administrator of the Office, furnish the Administrator 23 with copies of all records necessary to verify that the building for 24 which the applicant will undertake a qualified rehabilitation is a 25 qualified historic building and the rehabilitation of the qualified 26 historic building is a qualified rehabilitation; and 27 (b) The Department, furnish the Department with copies of all 28 records necessary to verify that the applicant meets the 29 requirements of subsection 3. 30 8. The Office: 31 (a) Shall adopt regulations prescribing any information that 32 must be provided to the Office to enable the Office to determine 33 whether the building for which the applicant will undertake a 34 qualified rehabilitation is a qualified historic building and the 35 rehabilitation of the qualified historic building is a qualified 36 rehabilitation; and 37 (b) May adopt any other regulations that are necessary to 38 carry out the provisions of sections 2 to 12, inclusive, of this act. 39 9. The Nevada Tax Commission: 40 (a) Shall adopt regulations prescribing: 41 (1) Any additional requirements to receive transferable tax 42 credits; 43 (2) Any additional information that must be included with 44 an application; 45 (3) The application review process; and 1 (4) The requirements for notice pursuant to section 10 of 2 this act; and 3 (b) May adopt any other regulations that are necessary to 4 carry out the provisions of sections 2 to 12, inclusive, of this act. 5 10. The Nevada Tax Commission and the Nevada Gaming 6 Commission: 7 (a) Shall adopt regulations prescribing the manner in which 8 the transferable tax credits will be administered. 9 (b) May adopt any other regulations that are necessary to 10 carry out the provisions of sections 2 to 12, inclusive, of this act. 11 Sec. 8. 1. Except as otherwise provided in this section and 12 section 9 of this act, the amount of transferable tax credits issued 13 to a person who applies for a transferable tax credit pursuant to 14 section 7 of this act must equal 20 percent of the eligible costs and 15 expenses incurred by the person for a qualified rehabilitation but 16 must not exceed $1,000,000 per qualified rehabilitation. 17 2. Except as otherwise provided in this section and section 9 18 of this act, the amount of transferable tax credits issued to a 19 person who applies for a transferable tax credit pursuant to 20 section 7 of this act and who undertakes a qualified rehabilitation 21 of a qualified historic building that provides affordable housing 22 must equal 30 percent of the eligible costs and expenses incurred 23 by the person for a qualified rehabilitation but must not exceed 24 $1,000,000 per qualified rehabilitation. 25 3. Except as otherwise provided in this section and section 9 26 of this act, the amount of transferable tax credits issued to a 27 person who applies for a transferrable tax credit pursuant to 28 section 7 of this act and who undertakes a qualified rehabilitation 29 of a qualified historic building that is part of a local Main Street 30 program designated by the Nevada Main Street Program pursuant 31 to NRS 231.1534 or is part of a community which is recognized as 32 a Certified Local Government pursuant to the Certified Local 33 Government Program jointly administered by the National Park 34 Service and the Office of Historic Preservation of the State 35 Department of Conservation and Natural Resources must equal 25 36 percent of the eligible costs and expenses incurred by the person 37 for a qualified rehabilitation but must not exceed $1,000,000 per 38 qualified rehabilitation. 39 4. The Department shall not approve any application for 40 transferrable tax credits submitted pursuant to section 7 of this act 41 if approval of the application would cause the total amount of 42 transferable tax credits approved pursuant to section 7 of this act 43 for each fiscal year to exceed the sum of $10,000,000. Any portion 44 of the $10,000,000 per fiscal year for which transferable tax 45 credits have not previously been approved may be carried forward 1 and made available for approval during the next or any future 2 fiscal year, in addition to the $10,000,000 for that fiscal year. 3 5. The Department may: 4 (a) Reduce the cumulative amount of transferable tax credits 5 that are calculated pursuant to this section by an amount equal to 6 any damages incurred by the State or any political subdivision of 7 the State as a result of the qualified rehabilitation; or 8 (b) Withhold the transferable tax credits, in whole or in part, 9 until any pending legal action in this State against the applicant or 10 involving the qualified rehabilitation is resolved. 11 Sec. 9. The transferable tax credits issued to any applicant 12 for a qualified rehabilitation pursuant to section 7 of this act 13 expire 5 years after the date on which the transferable tax credits 14 are issued. 15 Sec. 10. 1. If the Department receives an application for 16 transferable tax credits pursuant to section 7 of this act, the 17 Department shall, not later than 10 days before a hearing on the 18 application, provide notice of the hearing to: 19 (a) The applicant; 20 (b) The Office; and 21 (c) The Nevada Gaming Control Board. 22 2. The notice required by this section must set forth the date, 23 time and location of the hearing on the application. The date of 24 the hearing must be not later than 60 days after the Department 25 receives the completed application. 26 3. The Department shall issue a decision on the application 27 not later than 30 days after the conclusion of the hearing on the 28 application. 29 4. Except as otherwise provided in this subsection, if the 30 application is approved, the qualified rehabilitation must begin not 31 more than 90 days after the date on which the decision on the 32 application is issued. The Department may extend by not more 33 than 90 days the period otherwise prescribed by this subsection. 34 5. An applicant that undertakes a qualified rehabilitation 35 shall submit the report and documentation required by section 7 of 36 this act and all other required information to the Office or the 37 Department, as applicable, within the time required by paragraph 38 (d) of subsection 3 of section 7 of this act. If the Office or the 39 Department determines that information submitted pursuant to 40 this subsection is incomplete, the applicant shall, not later than 30 41 days after receiving notice that the information is incomplete, 42 provide to the Office or the Department, as applicable, all 43 additional information required by the Office or the Department. 44 6. The Department shall give priority to the approval and 1 processing of an application relating to a qualified rehabilitation 2 that promotes tourism in the State of Nevada. 3 Sec. 11. 1. A person who applied for a transferable tax 4 credit pursuant to section 7 of this act who is found to have 5 submitted any false statement, representation or certification in 6 any document submitted for the purpose of obtaining transferable 7 tax credits or who otherwise becomes ineligible for transferable 8 tax credits after receiving the transferable tax credits pursuant to 9 section 7 of this act shall repay to the Department or the Nevada 10 Gaming Control Board, as applicable, any portion of the 11 transferable tax credits to which the applicant is not entitled. 12 2. Transferable tax credits purchased in good faith are not 13 subject to forfeiture or repayment by the transferee unless the 14 transferee submitted fraudulent information in connection with 15 the purchase. 16 Sec. 12. The Department shall, on or before October 1 of 17 each year, prepare and submit to the Governor and to the Director 18 of the Legislative Counsel Bureau for transmittal to the 19 Legislature an annual report which includes, for the immediately 20 preceding fiscal year: 21 1. The number of applications submitted for transferable tax 22 credits pursuant to section 7 of this act; 23 2. The number of qualified rehabilitations for which 24 transferable tax credits were approved; 25 3. The amount of transferable tax credits approved; 26 4. The amount of transferable tax credits used; 27 5. The amount of transferable tax credits transferred and the 28 person or entity to whom the tax credits were transferred; 29 6. The amount of transferable tax credits taken against each 30 allowable fee or tax, including the actual amount used and 31 outstanding, in total and for each qualified rehabilitation; 32 7. The total amount of the eligible costs and expenses 33 incurred by each qualified rehabilitation; 34 8. The number of persons in Nevada employed by each 35 qualified rehabilitation and the amount of wages paid to those 36 persons; and 37 9. The period during which each qualified rehabilitation 38 employed persons in Nevada. 39 Sec. 13. The provisions of subsection 1 of NRS 218D.380 do 40 not apply to any provision of this act that adds or revises a 41 requirement to submit a report to the Legislature. 42 Sec. 14. This act becomes effective upon passage and approval 43 for the purpose of adopting regulations and performing any other 44 preparatory administrative tasks that are necessary to carry out the 1 provisions of this act and on July 1, 2019, for all other purposes. 2

Heidi Swank (D)*,  Shannon Bilbray-Axelrod (D),  Maggie Carlton (D),  Lesley Cohen (D),  Skip Daly (D),  John Ellison (R),  Edgar Flores (D),  Al Kramer (R),  William McCurdy (D),  Ellen Spiegel (D),  Steve Yeager (D), 

(No further action taken.) (on 06/04/2019)

Official Document