Income taxes: credits: rehabilitation of certified historic structures.

Assembly Member Haney proposes extending and enhancing California's historic structure rehabilitation tax credit program through 2031, with increased incentives for affordable housing preservation and adaptive reuse projects. The legislation modifies the existing credit structure by raising the maximum credit from 25% to 30% of qualified rehabilitation expenses for projects that either preserve existing affordable housing units or convert at least half of a historic building's floor area to residential use.

The bill maintains the program's annual funding cap of $50 million while continuing dedicated allocations of $2 million for qualified residences and $8 million for smaller projects under $1 million. Property owners must obtain tax credit allocations through the California Tax Credit Allocation Committee and the Office of Historic Preservation, with projects required to meet federal rehabilitation standards. For expenditures exceeding $250,000, cost certifications from licensed CPAs are required.

Applications must detail expected economic benefits, including job creation and tax revenue projections. The Legislative Analyst's Office will continue its annual program effectiveness reviews through 2031, examining factors such as credit demand, project types, employment impacts, and broader economic effects. The bill includes provisions for credit recapture if rehabilitation does not commence within prescribed timeframes or if residential requirements are not met.