Colorado State Rehabilitation Tax Credit Set To Expire!

Support Reauthorization of this Tax Credit byContacting your State Senator and State Representative

Upate: February 1, 2008

The House Finance committee met on January 23rd to hear HB-1033- Historic Preservation Tax Credit. HB-1033 was postponed until after lunch at which point Rep. Levy started with a summary of the bill. She explained the details of the credit and Rep. Doug Bruce was first to ask a question. His concerns were expressed throughout the two hours of testimony about how tax credit reauthorizations do cause a fiscal impact.  Legislative Council staff defended their position that fiscal notes for sunset or reauthorization bills are mostly given a “no fiscal impact” heading because these costs are already calculated into the upcoming budget. Since it will not change the budget, there is no fiscal impact. The committee is going to continue to work with legislative council staff to understand more about the process of fiscal notes in relation to tax credits.

Rep. Judd, Chairman of the Finance committee, decided that the amendments and action would not take place until they had a chance to look into the fiscal note issue further. He did allow for testimony to be heard and there were six people who testified in support of the bill. Each testifier presented their personal knowledge or experience they have had with the tax credit and the committee continued to ask very personal and direct questions. Rep. Bruce asked many questions about who uses the credits, what they are used for, and how much the projects cost; and the other committee members listened intently and asked few questions.

Representative Levy, the sponsor of the bill, gave an excellent summary about how the projects that use the tax credits are for modest projects and very few commercial. She discussed how the tax credits have revitalized the Baker neighborhood and Curtis Park, and she said that this credit “tips the scale in the favor of preserving properties.” Levy closed by saying she was not going to get into the political tax credit debate but stated that there was “ample justification for this particular tax credit” given throughout the day.

Download Fact Sheet

Colorado Preservation Inc. and its members are working with State Representative Claire Levy (D-Boulder) and State Senator Paula Sandoval (D-Denver) to run legislation in the 2008 session to reauthorize the State’s Income Tax Credit for Historic Preservation projects.

The credit, last authorized in 1999, can cover 20% of qualified rehabilitation expenses up to a maximum of $50,000 per property for qualified properties (Commercial or Residential listed on the National Register of Historic Places, State Register of Historic Properties or in a local historic district designated by a Certified Local Government).

It’s vital that preservationists be in contact with state legislators to encourage support of this legislation. Contacts made in November and December are ideal, as legislators are inundated with phone calls and emails once the General Assembly goes back in session in early January. Please take a moment to contact your State Representative and State Senator now and let them know of your support for the extension of the State Income Tax Credit and the economic impact and other benefits of historic preservation in your neighborhood.

You can identify your legislators at www.vote-smart.org. You can obtain their contact information at www.leg.state.co.us. If Rep. Levy or Sen. Sandoval represents you, please add a “thanks” as you share your story. If a legislator with whom you are in touch is interested in being added as a co-sponsor of the bill, please let us know, at action@coloradopreservation.org or 303-893-4260.
 
A fact sheet on the tax credit reauthorization can be found here. For more information about the State Income Tax Credit for Historic Preservation, visit here.