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F I S C A L I M P A C T R E P O R T
SPONSOR Miera
DATE TYPED 02/10/05 HB HJM47
SHORT TITLE Historic Building & Contributions Tax Credit
SB
ANALYST Padilla-Jackson
REVENUE
Estimated Revenue
Subsequent
Years Impact
Recurring
or Non-Rec
Fund
Affected
FY05
FY06
NFI
(Parenthesis ( ) Indicate Revenue Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Taxation and Revenue Department (TRD)
Economic Development Department (EDD)
SUMMARY
Synopsis of Bill
House Joint Memorial 47 requests that the Taxation and Revenue Department and the Historic
Preservation Division of the Cultural Affairs Department study the possibility of expanding eli-
gibility for the state income and corporate income tax credit for historic properties to persons
making donations to rehabilitate historic properties to not-for-profit organizations or to state and
local governments that own eligible properties. The study would examine feasibility, legal
status, practical application and fiscal impact of expanding the tax credit. The two departments
would be required to report to the appropriate interim committee of the legislature the findings
and recommendations no later than November 2005.
FISCAL IMPLICATIONS
There is significant direct fiscal impact.
pg_0002
House Joint Memorial 47 -- Page 2
ADMINISTRATIVE IMPLICATIONS
TRD expects that the bill will require 10 FTE and at a cost of approximately $15,000 in materi-
als, equipment and staff time.
OTHER SUBSTANTIVE ISSUES
TRD notes that personal income tax credits provided for cultural property preservation totaled
approximately $313,000 for tax year 2003. Fewer than 100 personal income tax returns out of
roughly 850,000 filed contain claims for the credits. They also note that the proposed memorial
would be most effective if it provided as much guidance as possible as to the specific issues that
sponsors would like addressed in the study.
OPJ/lg