(a) Definitions. In this section, “residential rehabilitation” means demolition qualifying under subsection (c) of an existing single-family detached dwelling unit or units and the construction of an equal number of new single-family detached dwelling units on the same lot or lots. “Residential rehabilitation” does not include existing single-family detached dwelling units located on a lot with a total assessed value for land and improvements of $350,000 or more.
(b) Creation. There is a tax credit from county real property taxes levied on property on which a qualified residential rehabilitation project has been completed and for which a certificate of occupancy has been issued.
(c) Qualifying rehabilitation. In order to qualify as a residential rehabilitation the project shall include any removal or remediation of lead paint required under State law and shall include:
(i) demolition that includes the foundation; or
(ii) demolition that is to the foundation with construction on the same foundation; or
(iii) demolition that is to the framing with construction on the same foundation, and includes removal of all roof systems to the rafters, all siding and insulation, all interior walls, stairs and fixtures, all interior and exterior doors and windows, and all mechanical, electric and plumbing systems.
(d) Calculation and duration. The residential rehabilitation tax credit shall be equal to the real property tax increase attributable to the increase in the assessment of the real property over the assessment before the real property was rehabilitated. A residential rehabilitation tax credit may be claimed and granted for no more than five consecutive years.
(e) Time for filing application. An application for the tax credit created by this section shall be filed on or before June 1 prior to the tax year for which the credit is sought. If the application is filed after June 1, the credit shall be disallowed that year but shall be treated as an application for the tax credit for the next succeeding year. All applications must be filed no later than one year after issuance of a certificate of occupancy.
(f) Form of application. An application for the tax credit shall be submitted to the Controller on a form that the Office of Finance requires; be accompanied by documentary evidence of the qualified residential rehabilitation project and any required lead paint removal or remediation; be accompanied by a copy of a certificate of occupancy for the dwelling unit(s) completed; and include any additional information the Controller believes necessary to determine whether the tax credit should be granted.
(g) Grant of application. The tax credit shall be granted by the Controller if the application meets the requirements of this section.
(Bill. No. 66-16; Bill No. 15-17; Bill No. 81-17; Bill No. 17-20)
Editor’s note – The provisions of this section are in effect for 5 years from December 9, 2016 (Bill Nos. 66-16 and 15-17), after which time the section is repealed and of no further force and effect other than for applications submitted prior to the date of repeal.
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