Bill > H2505

This bill establishes an economic development tax credit incentive program for the substantial rehabilitation of mill properties located in severely economically distressed communities, which are defined as specific cities like Fall River, Holyoke, Lawrence, New Bedford, and Springfield, or any city meeting certain criteria for low median household income, high unemployment, and high rates of subsidized housing and poverty. The program allows taxpayers who own income-producing properties listed on or eligible for the National Register of Historic Places to receive a tax credit ranging from 20% to 30% of their "qualified expenditures" – costs associated with rehabilitation, excluding property acquisition, new construction, parking, and landscaping – when undertaking a "substantial rehabilitation," meaning qualified expenditures exceed the property's adjusted basis (purchase price minus land costs and depreciation, plus improvement costs within a 24-month period) or $5,000, whichever is greater. The rehabilitated property must be used for housing (at least 90% market-rate rental), commercial, mixed-use, or industrial purposes and be deed-restricted for at least 10 years. The Department of Housing and Community Development will conduct cost-benefit analyses of projects, and the Department of Revenue will report on the program's effectiveness, with a cap of $10,000,000 in tax credits per taxpayer annually. This new program replaces a previously repealed subsection related to similar tax credits.