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H 3036

An Act relative to historic building tax credits

194th Legislature (2025-2026) Introduced by Tony Cabral

Creates a historic building fire prevention tax credit covering 50% of sprinkler costs up to $10,000 per year, through 2035.

Hearing scheduled for 07/15/2025 from 10:00 AM-01:00 PM in A-1
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Bill Summary · H 3036

Legislative Bill Summary: H.3036 — An Act relative to historic building fire prevention tax credits

Overview

  • Bill number: H.3036
  • Short title: An Act relative to historic building tax credits
  • Introduced: February 27, 2025
  • Current status: Hearing scheduled for July 15, 2025, 10:00 AM–1:00 PM, in room A-1
  • Committee assignment: Revenue (referenced in bill actions)
  • Related bill: HD 479 (a related matter filed in a prior session; indicated as replacing)

Purpose and intent

The bill establishes a new tax credit to encourage the installation of fire protection sprinkler systems in historic structures. It aims to support the preservation of historic buildings by offsetting a portion of the costs of modern fire safety equipment, thereby reducing the risk of fire damage and supporting safer, more durable historic resources.

Key provisions

  • New credit creation: Section 6P added to Chapter 62 of the General Laws defines the Historic Building Fire Prevention Tax Credit.
  • Who can claim the credit: Any taxpayer subject to Massachusetts income tax under Chapter 62 or Chapter 63 (individuals, firms, partnerships, trusts, estates, LLCs, etc.) may claim the credit.
  • Eligible project and structure: The credit applies to the cost of installing a fire protection sprinkler system in a qualified historic structure, as defined by existing law (Section 6J of Chapter 62). Eligibility criteria are to be determined by regulations of the Massachusetts Fire Prevention Regulations Board.
  • Credit amount and cap: The credit equals 50% of eligible installation costs, with a maximum credit of $10,000 per taxpayer per fiscal year.
  • Regulatory framework: The Fire Prevention Regulations Board will establish eligibility criteria and other details via regulations under this section.
  • Duration and sunset: The credit is available for taxable years in which the costs are incurred and may be claimed through 2035.
  • Tax treatment and carryover: The credit cannot reduce tax owed below zero. Any unused credit amount in a given year may be carried forward for up to 5 succeeding taxable years.

Administrative and procedural details

  • Regulatory administration: Eligibility and implementation criteria will be set by the Massachusetts Fire Prevention Regulations Board through regulatory promulgation.
  • Taxpayer impact: The credit is targeted at owners or successors in interest of historic structures who undertake sprinkler installation projects.
  • Relationship to existing credits: This is a new, separate credit that supplements existing state tax provisions related to historic buildings and safety funding.

Timeline and legislative context

  • Hearing date: July 15, 2025 (10:00 AM–1:00 PM) in A-1.
  • Introduction and referral: Introduced February 27, 2025; referred to the Committee on Revenue.
  • ** Legislative track note:** Similar matter previously filed (House No. 2723 in 2023–2024); related House filing HD 479 noted as replacing the current proposal.

Potential impact

  • Encourages preservation of historic structures by offsetting up to 50% of sprinkler installation costs, up to $10,000 per taxpayer per year.
  • Provides a predictable, time-limited incentive through 2035.
  • Shifts administrative burden to the Fire Prevention Regulations Board to determine eligibility criteria.
  • Likely affects owners and managers of historic properties undertaking fire safety upgrades, as well as accountants and tax professionals advising on eligible expenditures.

If you’d like, I can adapt this summary to focus on a specific stakeholder group (e.g., historic property owners, developers, or tax practitioners) or add a quick comparison to similar existing credits.

Compiled from official sources — confirm details with the bill’s official record.

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