Historic Rehab Credit Rises To 35 Percent In Poor Tracts

The text as introduced · 303 words

By: Blanco
S.B. No. 2606

A BILL TO BE ENTITLED

AN ACT

relating to the franchise and insurance premium tax credit for the

certified rehabilitation of certified historic structures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 172.101(b), Tax Code, is amended by

adding Subdivision (4) to read as follows:

(4) "Distressed area" means an area of land located

entirely in a census tract with:

(A) a poverty rate equal to or greater than 40

percent;

(B) a median family income of not more than 40

percent of the area median family income that is established by the

United States Department of Housing and Urban Development; or

(C) an unemployment rate of at least 2.5 times

the national average unemployment rate.

SECTION 2. Section 172.106, Tax Code, is amended by

amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(a) Except as provided by Subsection (a-1), the [ The ] total

amount of the credit under this chapter with respect to the

rehabilitation of a single certified historic structure that may be

claimed may not exceed 25 percent of the total eligible costs and

expenses incurred in the certified rehabilitation of the certified

historic structure.

(a-1) The total amount of the credit under this chapter that

may be claimed with respect to the rehabilitation of a single

certified historic structure located in an area that is a

distressed area on the date the eligible costs and expenses are

incurred may not exceed 35 percent of those costs and expenses

incurred in the certified rehabilitation of the certified historic

structure.

SECTION 3. The changes in law made by this Act apply only to

a tax report originally due on or after the effective date of this

Act.

SECTION 4. This Act takes effect January 1, 2026.