Introduced By: Representatives Ferguson, Pires and Millard
Date Introduced : January 20, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 44-31-2 of the General Laws in Chapter 44-31 entitled "Investment Tax Credit" is hereby amended to read as follows:
44-31-2. Specialized investment tax credit. -- (a)
A certified building owner as provided in chapter {DEL 64.6 DEL}
{ADD 64.7 ADD} of title 42 of the general laws may be allowed a specialized
investment tax credit against the tax imposed by chapters 11,
{ADD 14, 17 ADD} and 30 of this title.
(b) The taxpayer may claim credit for the costs of substantial
rehabilitation of the certified building, which, as defined in
sections {DEL 42-64.6-4(a)(10) and (11) DEL} {ADD 42-64.7-4(a)(10)
and (11) ADD}, is achieved when rehabilitation or reconstruction
costs equal or exceed twenty percent (20%) of the market value
of the certified building before rehabilitation or reconstruction
begins. Once substantial rehabilitation is established by the
taxpayer, the taxpayer may claim additional credit for additional
rehabilitation or reconstruction costs under this section during
the two (2) years following certification.
(c) The credit is ten percent (10%) of the cost solely and exclusively
for the substantial rehabilitation of the certified building,
provided further that the substantial rehabilitation occurs within
two (2) years following the certification of the building in accordance
with section {DEL 42-64.6-5 DEL} {ADD 42-64.7-5 ADD}. Such
credit shall be allowable in the year the substantial rehabilitation
is first placed into service, which is the year in which, under
the taxpayer's depreciation practice, the period for depreciation
with respect to such property begins, or the year in which the
property is placed in a condition or state of readiness and availability
for its specifically assigned function, whichever is earlier.
(d) The credit shall not offset any tax liability in taxable years other than the year or years in which the taxpayer qualifies for the credit. The credit shall not reduce the tax below the minimum; however, amounts of unused credit for this taxpayer may be carried over and offset against this taxpayer's tax for a period not to exceed the following seven (7) taxable years.
(e) In the case of a corporation, this credit shall only be allowed against the tax of that of a corporation included in a consolidated return that qualifies for the credit and not against the tax of other corporations that may join in the filing of a consolidated tax return.
SECTION 2. This act shall take effect on January 1, 1998.
