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Legislation recently introduced in the state House of Representatives would create state tax incentives to promote redevelopment and the reuse of abandoned or neglected factory or mill buildings.
House Bill 653 would establish three types of tax incentive programs:
- A 25 percent tax credit would be for rehabilitation and reconstruction costs incurred by a property’s owner.
- A business tax credit would be equal to the salaries and wages paid to full-time employees up to $7,000 per employee.
- An interest income tax credit of 15 percent would be for the interest from loans taken out for expenditures within a building up to $12,000 per taxable year. The loan holder also would be eligible for a 100 percent tax credit on interest from loans for substantial rehabilitation up to $25,000 per taxable year.
“Using a building for the purpose other than what it was originally intended for is a way to reuse buildings that have stood in our communities for decades. Some of the buildings have been around for more than 100 years. They might be neglected, but they are still standing,” state Rep. Robert Freeman (D-Northampton), who wrote the bill, said.
The bill was referred to the House Finance Committee.