Colorado Legislative Council Staff

REVISED NO FISCAL IMPACT

(replaces fiscal impact dated January 23, 1999)

TITLE:            CONCERNING THE STATE INCOME TAX CREDIT FOR QUALIFIED COSTS INCURRED IN THE PRESERVATION OF HISTORIC PROPERTIES.

Summary of Assessment

            The bill, as amended in the Senate Finance Committee, permanently extends the state income tax credit for the preservation of historic properties. The credit is scheduled to expire on January 1, 2000. Under current law, the credit shall not exceed an aggregate of $50,000 per qualified property, or 20 percent of the aggregate qualified costs incurred per qualified property, whichever is less. This amended bill retains the current-law cap.

            Current law states that for any given taxable year, the maximum amount of the income tax credit that may be claimed shall not exceed $2,000 plus 50 percent of the difference between the tax liability of the taxpayer and $2,000. The bill eliminates this provision. While the aggregate amount of the income tax credit will not change, under certain circumstances, the elimination of this provision may increase the amount of the credit that may be used in the current tax year for some taxpayers. This, in turn, would reduce the credit that may be carried forward to future years by a corresponding amount.

            Since the bill extends a state income tax credit that is presently available, the bill is viewed as not affecting state revenues or expenditures. Therefore, the bill is assessed as having no fiscal impact. The bill would become effective upon signature of the Governor.

Departments Contacted

            Revenue

Omissions and Technical or Mechanical Defects

            The Senate Finance Committee amendment reinstated the maximum value of the credit as an amount that shall not exceed an aggregate of $50,000 per qualified property or an amount equal to 20 percent of the aggregate qualified costs incurred per qualified property. For consistency, the qualifier "whichever is less" should be added after the word "property".