Relating to the Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax

Sponsored by the House Ways and Means Committee

Topics:Taxes Tax credits & incentives

Same legislation: HSB 123

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 1, 2023
Done: SubcommitteeFebruary 1, 2023
Done: House committeeApril 5, 2023
Done: Passes the HouseApril 19, 202395–0
Done: Senate committeeApril 25, 2023
Done: Passes the SenateMay 3, 202348–0
Done: To the GovernorMay 9, 2023
Done: Signed into lawJune 1, 2023

Signed into law What’s a funnel?

What’s in it

AI summary People and businesses who donate to the Hoover Presidential Library renovation project can receive a tax credit. This bill extends the time people can claim that credit by one year, making it available for tax years starting before January 1, 2025.¹

Read the official explanation

This bill relates to the Hoover presidential library tax credit available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax. Currently, the tax credit applies to tax years beginning on or after January 1, 2021, but before January 1, 2024. The bill extends the tax years a taxpayer is able to take the tax credit by one tax year. Under the bill, a taxpayer is able to take the tax credit through tax years beginning before January 1, 2025. The bill extends the repeal date of the tax credit by one year to align with the current carryforward provisions allowing any unused portion of the tax credit to be carried forward up to five years. The Hoover presidential library tax credit equals percent of a taxpayer’s donation to the Hoover presidential foundation for the Hoover presidential library and museum renovation project fund.

Full bill text · What changed before it passed²

Senate subcommittee

Named April 20, 2023. On April 24, 2023 it recommended passage. [].

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

Less revenue: up to $560,000 Compare with other bills

AI summary This bill extends the deadline for taxpayers to receive a tax credit for donations made to the Hoover Presidential Library Foundation through the end of calendar year 2024. The extension is projected to reduce General Fund revenue by $560,000 in fiscal year 2025 and by $38,000 per fiscal year from fiscal year 2026 through fiscal year 2030.³

Read the fiscal note

Description

House File 703 relates to the Hoover Presidential Library Tax Credit. Under current law, this tax credit may be awarded through the end of calendar year (CY) 2023. The Bill extends award availability through the end of CY 2024.

Background

The Hoover Presidential Library Tax Credit equals 25.0% of a taxpayer’s qualified donation to the Hoover Presidential Library Foundation for use through the Hoover Presidential Library and Museum Fund. The total amount of tax credits that may be awarded under this tax credit program is $5.0 million, representing $20.0 million in potential donations. The credit is not transferable or refundable. Unused credits may be carried forward for up to five additional tax years.

The tax credit was first available for donations starting January 1, 2021. Through December 31, 2022, tax credits totaling $469,000 have been awarded. Under current law, tax credits may be awarded through December 31, 2023.

Assumptions

Tax credit awards during CY 2023 are assumed to total $750,000.
Total credit awards will not reach the $5.0 million program limit by December 31, 2023.
With the extension contained in the Bill, tax credit awards during CY 2024 are assumed to total $750,000.
Tax credit awards are assumed to be redeemed 75.0% in the fiscal year following the year of award and 5.0% each fiscal year for the next five fiscal years.

Fiscal Impact

Extending the tax credit award deadline will allow credits to be awarded that will not be available without a law change that extends the availability of the tax credits. The tax credit extension is projected to reduce General Fund revenue by the following amounts: