AN ACT CONCERNING HISTORIC DISTRICTS AND HISTORIC PRESERVATION.

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House of Representatives

File No. 733
General Assembly
February Session, 2026 (Reprint of File No. 275)

Substitute House Bill No. 5508
As Amended by House Amendment
Schedule "A"

Approved by the Legislative Commissioner
April 28, 2026

AN ACT CONCERNING HISTORIC DISTRICTS AND HISTORIC
PRESERVATION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. ( Effective from passage) (a) There is established a task force 1
to study issues relating to municipal historic district commissions. Such 2
study shall include, but need not be limited to, an examination of (1) the 3
feasibility of (A) exempting property owned by municipalities from the 4
provisions of part I of chapter 97a of the general statutes, (B) establishing 5
a nonbinding process for the historic district commission review of 6
proposed erections or alterations of municipally owned buildings and 7
structures located within historic districts, (C) establishing a (i) state -8
wide board to which appeals from decisions of historic district 9
commissions may be taken in lieu of appeals to the Superior Court, and 10
(ii) process for the taking of such appeals, and (D) requiring historic 11
district commissions to contemporaneously broadcast hearings 12
conducted pursuant to subsection (a) of section 7 -147e of the general 13
statutes on a public Internet web site, and (2) any other issues deemed 14

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relevant by the chairs of the task force. 15
(b) The task force shall consist of the following members: 16
(1) One appointed by the speaker of the House of Representatives; 17
(2) One appointed by the president pro tempore of the Senate; 18
(3) One appointed by the majority leader of the House of 19
Representatives; 20
(4) One appointed by the majority leader of the Senate; 21
(5) One appointed by the minority leader of the House of 22
Representatives; 23
(6) One appointed by the minority leader of the Senate; and 24
(7) The Commissioner of Economic and Community Development, 25
or the commissioner's designee. 26
(c) Any member of the task force appointed under subdivision (1), 27
(2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 28
of the General Assembly. 29
(d) All initial appointments to the task force shall be made not later 30
than thirty days after the effective date of this section. Any vacancy shall 31
be filled by the appointing authority. 32
(e) The speaker of the House of Representatives and the president pro 33
tempore of the Senate shall select the chairpersons of the task force from 34
among the members of the task force. Such chairpersons shall schedule 35
the first meeting of the task force, which shall be held not later than sixty 36
days after the effective date of this section. 37
(f) The administrative staff of the joint standing committee of the 38
General Assembly having cognizance of matters relating to planning 39
and development shall serve as administrative staff of the task force. 40
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(g) Not later than January 1, 2027, the task force shall submit a report 41
on its findings and recommendations to the joint standing committee of 42
the General Assembly having cognizance of matters relating to planning 43
and development, in accordance with the provisions of section 11 -4a of 44
the general statutes. The task force shall terminate on the date that it 45
submits such report or January 1, 2027, whichever is later. 46
Sec. 2. Section 10 -416c of the general statutes is repealed and the 47
following is substituted in lieu thereof ( Effective July 1, 2027, and 48
applicable to taxable years commencing on or after January 1, 2028): 49
(a) As used in this section, the following terms shall have the 50
following meanings unless the context clearly indicates another 51
meaning: 52
(1) "Officer" means the State Historic Preservation Officer designated 53
pursuant to 36 CFR 61.2; 54
(2) "Certified historic structure" means any property that: (A) Is listed 55
individually on the National or State Register of Historic Places, or (B) 56
is located in a district listed on the National or State Register of Historic 57
Places and has been certified by the officer as contributing to the historic 58
character of such district; 59
(3) "Certified rehabilitation" means any rehabilitation of a certified 60
historic structure for (A) residential use of five units or more, (B) 61
residential use of not less than two and not more than four units, where 62
such units produce income, (C) mixed residential and nonresidential 63
uses, or [(C)] (D) nonresidential use consistent with the historic 64
character of such property or the district in which such property is 65
located, as determined by regulations adopted by the Department of 66
Economic and Community Development; 67
(4) "Owner" means any person, firm, limited liability company, 68
nonprofit or for -profit corporation or other business entity or 69
municipality that possesses title to an historic structure and that 70
undertakes the rehabilitation of such structure; 71
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(5) "Placed in service" means the completion of substantial 72
rehabilitation work that would allow for occupancy of the entire 73
building or an identifiable portion of the building; 74
(6) "Qualified rehabilitation expenditures" means any costs incurred 75
for the physical construction involved in the rehabilitation of a certified 76
historic structure, excluding: (A) The owner's personal labor, (B) the cost 77
of a new addition, except as required to comply with any provision of 78
the State Building Code or the Fire Safety Code, and (C) any 79
nonconstruction cost such as architectural fees, legal fees and financing 80
fees; 81
(7) "Rehabilitation plan" means any narrative, construction plans and 82
specifications for the proposed rehabilitation of a certified historic 83
structure in sufficient detail for evaluation of compliance with the 84
Secretary of the Interior's Standards for Rehabilitation, as established in 85
36 CFR 67; 86
(8) "Substantial rehabilitation" or "substantially rehabilitate" means 87
the qualified rehabilitation expenditures of a certified historic structure 88
that exceed twenty-five per cent of the assessed value of such structure; 89
(9) "Affordable housing" has the same meaning as provided in section 90
8-39a; and 91
(10) "Project" means an undertaking involving rehabilitation work to 92
a certified historic structure and any attached or adjacent new 93
construction, associated demolition or improvements on the site that 94
may affect the historic character or significance of the certified historic 95
structure. 96
(b) (1) The Department of Economic and Community Development 97
shall administer a system of tax credit vouchers within the resources, 98
requirements and purposes of this section for owners rehabilitating 99
certified historic structures. 100
(2) The credit authorized by this section shall be available in the tax 101
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year in which the substantially rehabilitated certified historic structure 102
is placed in service. In the case of projects completed in phases, the tax 103
credit shall be prorated to the substantially rehabilitated identifiable 104
portion of the building placed in service. If the tax credit is more than 105
the amount owed by the taxpayer for the year in which the substantially 106
rehabilitated certified historic structure is placed in service, the amount 107
that is more than the taxpayer's tax liability may be carried forward and 108
credited against the taxes imposed for the succeeding five years or until 109
the full credit is used, whichever occurs first. 110
(3) In the case of projects completed in phases, the Department of 111
Economic and Community Development may issue vouchers for the 112
substantially rehabilitated identifiable portion of the building placed in 113
service. 114
(4) If a credit is allowed under this section for rehabilitation of a 115
certified historic structure with multiple owners, such credit shall be 116
passed through to such owners, or persons designated as partners or 117
members of such owners, pro rata or pursuant to an agreement among 118
such owners, or persons designated as partners or members of such 119
owners, documenting an alternative distribution method without 120
regard to other tax or economic attributes of such owners. 121
(5) Any owner entitled to a credit under this section may sell, assign, 122
or otherwise transfer such credit, in whole or in part, to one or more 123
persons, as defined in section 12 -1, provided any credit, after issuance, 124
may be sold, assigned or otherwise transferred, in whole or in part, not 125
more than three times. Such person shall be entitled to offset the tax 126
imposed under chapter 207, 208, 209, 210, 211 or 212 as if such transferee 127
had incurred the qualified rehabilitation expenditure. 128
(6) If a credit under this section is sold, assigned or otherwise 129
transferred, whether by the owner or any subsequent transferee, the 130
transferor and transferee shall jointly submit written notification of such 131
transfer to the Department of Economic and Community Development 132
not later than thirty days after such transfer. The notification after each 133
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transfer shall include the credit voucher number, the date of transfer, 134
the amount of such credit transferred, the tax credit balance before and 135
after the transfer, the tax identification numbers for both the transferor 136
and the transferee, and any other information required by the 137
department. Failure to comply with this subsection shall result in a 138
disallowance of the tax credit until there is full compliance on the part 139
of the transferor and the transferee, and for a second or third transfer, 140
on the part of all subsequent transferors and transferees. 141
(7) The Department of Economic and Community Development shall 142
provide a list to the Commissioner of Revenue Services, on an annual 143
basis, detailing the credits that have been approved for the most recent 144
fiscal year and all sales, assignments and transfers thereof that were 145
made under this section for said year. 146
(c) The Department of Economic and Community Development may 147
adopt regulations, in accordance with chapter 54, to carry out the 148
purposes of this section. Such regulations shall include provisions for: 149
(1) The filing of applications, (2) the rating criteria for evaluating 150
applications, and (3) the timely approval of applications by the 151
department. The rating criteria for evaluating applications shall give 152
priority to applications of owners rehabilitating certified historic 153
structures located in federally designated opportunity zones. 154
(d) For the purpose of seeking a tax credit pursuant to subsection (b) 155
of this section, prior to beginning any rehabilitation work on a certified 156
historic structure, the owner shall submit to the officer (1) (A) a 157
rehabilitation plan for a determination of whether such rehabilitation 158
work meets the Secretary of the Interior's Standards for Rehabilitation , 159
as established in 36 CFR 67, and (B) if such rehabilitation work is 160
planned to be undertaken in phases, a complete description of each such 161
phase, with anticipated schedules for completion; (2) an estimate of the 162
qualified rehabilitation expenditures ; and (3) for projects pursuant to 163
subparagraph (C) of subdivision [(3)] (1) of subsection (e) of this section, 164
(A) the number of units of affordable housing to be created, (B) the 165
proposed rents or sale prices of such units, and (C) the median income 166
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for the municipality where the project is located. For projects under 167
subparagraph (C) of subdivision [(3)] (1) of subsection (e) of this section, 168
the owner shall submit a copy of data required under subdivision (3) of 169
this subsection to the Department of Housing. 170
(e) [If] (1) Except as provided in subdivision (2) of this subsection, if 171
the officer certifies that the rehabilitation plan conforms to the Secretary 172
of the Interior's Standards for Rehabilitation , as established in 36 CFR 173
67, the Department of Economic and Community Development shall 174
reserve for the benefit of the owner an allocation for a tax credit 175
equivalent to [(1)] (A) twenty-five per cent of the projected qualified 176
rehabilitation expenditures , [(2)] (B) thirty per cent of the projected 177
qualified rehabilitation expenditures if the certified historic structure is 178
located in a federally designated opportunity zone, or [(3)] (C) thirty per 179
cent of the projected qualified rehabilitation expenditures if [(A)] (i) at 180
least twenty per cent of the units are rental units and qualify as 181
affordable housing, or [(B)] (ii) at least ten per cent of the units are 182
individual homeownership units and qualify as affordable housing. No 183
tax credit shall be allocated for the purposes of subparagraph (C) of this 184
subdivision [(3) of this subsection ] unless an applicant received a 185
certificate from the Commissioner of Housing pursuant to section 8-37lll 186
confirming that the project complies with the definition of affordable 187
housing under section 8-39a. 188
(2) The owner of any certified historic structure intended for 189
residential use and having not less than two and not more than four 190
units, where such units produce income, shall not receive a reservation 191
for a tax credit pursuant to this subsection if such owner's projected 192
qualified rehabilitation expenditures are less than fifteen thousand 193
dollars. 194
(f) Following the completion of rehabilitation of a certified historic 195
structure in its entirety or in phases to an identifiable portion of the 196
building, any owner who seeks a tax credit pursuant to subsection (b) of 197
this section shall notify the officer that such rehabilitation is complete. 198
Such owner shall provide the officer with documentation of work 199
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performed on the certified historic structure and shall submit 200
certification of the costs incurred in rehabilitating the certified historic 201
structure. The officer shall review such rehabilitation and verify its 202
compliance with the rehabilitation plan. Following such verification, the 203
Department of Economic and Community Development shall issue a tax 204
credit voucher to such owner or to the taxpayer named by such owner 205
as contributing to the rehabilitation. The tax credit voucher shall be in 206
an amount equivalent to the lesser of the tax credit reserved upon 207
certification of the rehabilitation plan under the provisions of subsection 208
(e) of this section or (1) twenty -five per cent of the actual qualified 209
rehabilitation expenditures, (2) thirty per cent of the projected qualified 210
rehabilitation expenditures if the certified historic structure is located in 211
a federally designated opportunity zone, or [(2)] (3) for projects 212
including affordable housing pursuant to subparagraph (C) of 213
subdivision [(3)] (1) of subsection (e) of this section, thirty per cent of the 214
actual qualified rehabilitation expenditures. In order to obtain a credit 215
against any state tax due that is specified in subsection (g) of this section, 216
the holder of the tax credit voucher shall file the voucher with the 217
holder's state tax return. 218
(g) The Commissioner of Revenue Services shall grant a tax credit to 219
a taxpayer holding the tax credit voucher issued in accordance with 220
subsections (b) to (i), inclusive, of this section against any tax due under 221
chapter 207, 208, 209, 210, 211 or 212 in the amount specified in the tax 222
credit voucher. Such taxpayer shall submit the voucher and the 223
corresponding tax return to the Department of Revenue Services. 224
(h) The Department of Economic and Community Development may 225
charge any owner seeking a tax credit pursuant to subsection (b) of this 226
section an application fee in an amount not to exceed ten thousand 227
dollars to (1) cover the cost of administering the program established 228
pursuant to this section, and (2) fund programs that advance historic 229
preservation in the state. 230
(i) The aggregate amount of all tax credits that may be reserved by 231
the Department of Economic and Community Development upon 232
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certification of rehabilitation plans pursuant to subsections (b) to (h), 233
inclusive, of this section shall not exceed thirty-one million seven 234
hundred thousand dollars in any fiscal year. No project may receive tax 235
credits in an amount exceeding four million five hundred thousand 236
dollars. 237
(j) On or before October 1, 2015, and annually thereafter, the 238
Department of Economic and Community Development shall report, in 239
accordance with section 11 -4a, the total amount of tax credits reserved 240
for the previous fiscal year pursuant to subsections (b) to (i), inclusive, 241
of this section, to the joint standing committees of the General Assembly 242
having cognizance of matters relating to commerce and finance, revenue 243
and bonding. Each such report shall include the following information 244
for each project for which a tax credit has been reserved: (1) The total 245
project costs, (2) the value of the tax credit reservation pursuant to 246
subdivision (1) of subsection (e) of this section, (3) a statement whether 247
the reservation is for mixed -use and if so, the proportion of the project 248
that is not residential, and (4) the number of residential units to be 249
created, and, for reservations pursuant to subparagraph (C) of 250
subdivision [(3)] (1) of subsection (e) of this section, the value of the 251
reservation and percentage of residential units that will qualify as 252
affordable housing. 253
Sec. 3. Subsection (i) of section 2 -150 of the 2026 supplement to the 254
general statutes is repealed and the following is substituted in lieu 255
thereof (Effective October 1, 2026): 256
(i) The commission shall have the following powers and duties: To 257
(1) issue reports and recommendations to all three branches of 258
government concerning historical questions of memorialization and 259
commemoration related to Connecticut and United States history, either 260
upon the request of any executive, legislative or judicial department, 261
board, commission or other agency of the state or upon its own 262
initiative, including, but not limited to, developing the process required 263
under subsection (j) of this section; (2) obtain from any executive, 264
legislative or judicial department, board, commission or other agency of 265
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the state such assistance and data as necessary and available to carry out 266
the purposes of this section; (3) collaborate with the State Commission 267
on Capitol Preservation and Restoration on matters concerning the State 268
Capitol building and grounds; (4) accept any gift, donation or bequest 269
for the purpose of performing the duties described in this section; and 270
[(4)] (5) perform such other acts as may be necessary and appropriate to 271
carry out the duties described in this section. 272
This act shall take effect as follows and shall amend the following
sections:

Section 1 from passage New section
Sec. 2 July 1, 2027, and
applicable to taxable years
commencing on or after
January 1, 2028
10-416c
Sec. 3 October 1, 2026 2-150(i)

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Department of Economic &
Community Development
GF - Cost 98,000 98,000
State Comptroller - Fringe
Benefits1
GF - Cost 41,000 41,000
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill results in the following impacts noted below.
Section 1 has no fiscal impact by establishing a task force to study
issues relating to municipal historic district commissions. It is
anticipated that members assigned to the task force will have the
expertise necessary to complete the study.
Section 2 results in an annual cost of $139,000 to the Department of
Economic and Community Development by expanding the types of
projects that are eligible for the historic rehabilitation tax credit
program. It is anticipated that the agency will require one full -time
position at a cost of $98,000 in salary and $41,000 in fringe benefits in
order to accommodate the increase in applications to the program as a
result of this bill.
The section, which expands the historic rehabilitation tax credit

1The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.82% of payroll in FY 27.
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program, does not result in any state revenue impact as it does not alter
the overall $31.7 million annual program credit cap.2
Section 3 specifies that the State Historical Commission must
collaborate with the State Commission on Capitol Preservation and
Restoration on issues related to the State Capitol building and ground.
This does not result in a fiscal impact as the provision does not increase
the workload of the State Historical Commission.
House "A" strikes the underlying bill and its associated impact and
results in the impacts noted below.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.

Sources: Connecticut Department of Economic and Community Development State
Historic Preservation Office FY 25 Annual Report

2 The program currently reaches the $31.7 million program cap annually.
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OLR Bill Analysis
sHB 5508 (as amended by House "A")*

AN ACT CONCERNING HISTORIC DISTRICTS AND HISTORIC
PRESERVATION.

SUMMARY
This bill expands the state’s Historic Rehabilitation Tax Credit
Program, which generally provides a 25% tax credit for rehabilitating a
(1) residential building with at least five dwellings or (2) mixed -use or
non-residential building. Under the bill, eligibl e projects also include
rehabilitating a two - to four-family home, if the project is expected to
cost at least $15,000 and the dwellings are income producing (rental
units).
The bill also:
1. creates a task force to study issues related to local historic district
commissions (HDCs), including the feasibility of exempting
municipal property from their jurisdiction and creating a
statewide appeals board to hear appeals of HDC decisions;
2. specifies that the duties of the newly created State Historical
Commission (see BACKGROUND) include collaborating with
the State Commission on Capitol Preservation and Restoration
on issues related to the capitol building and grounds; and
3. makes technical and conforming changes.
EFFECTIVE DATE: Upon passage, except the tax credit provisions
are effective July 1, 202 7, and applicable to tax years beginning on or
after January 1, 202 8, and the provision on the State Historical
Commission is effective October 1, 2026.
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*House Amendment “A” (1) adds the provision creating a task force;
(2) modifies the tax credit provisions by, among other things, delaying
the effective date by one year and eliminating a provision requiring a
portion of the credits to be reserved for two- to four- family homes; and
(3) eliminates the provisions in the underlying bill on loc al HDCs
(including one that made HDC decisions on a certificate of
appropriateness application initially appealable to the local zoning
board of appeals, rather than Superior Court).
EXPANDED HISTORIC REHABILITATION TAX CREDIT PROGRAM
Under c urrent law, the historic rehabilitation tax credit applies to
rehabilitation of historic structures for (1) residential use of five units or
more, (2) mixed residential and non -residential uses, or (3) non -
residential use consistent with the property’s or district’s historic
character. Under the bill, eligible projects also include rehabilitating a
two- to four-family home, if the dwellings are income producing (rental
units). Rehabilitation of these homes is eligible for the tax credit only if
anticipated qualified expenditures are at least $15,000. The existing
historic eligibility rules and application procedures also apply to tax
credits for these homes (see BACKGROUND).
By law, the credit equals 25% of qualified rehabilitation expenditures,
or 30% if the project (1) includes a specified percentage of affordable
units or (2) is in an opportunity zone. By law, no project may receive
more than $4.5 million in credits and total program credits are capped
at $31.7 million per year.
(Under existing law, there is also a Historic Homes Rehabilitation Tax
Credit for rehabilitating a one- to four-family historic home that will
have at least one owner-occupied unit. The credit equals 30% of
qualified expenditures and the minimum expenditure is $15,000. The
credits are generally capped at $30,000 for homeowners and $50,000 for
certain nonprofits (CGS § 10-416).)
TASK FORCE
The bill creates a seven -member task force to study issues related to
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HDCs (see BACKGROUND), including examining the feasibility of:
1. exempting property owned by municipalities from HDC
oversight;
2. creating a nonbinding process for HDCs to review construction
of, or work on, municipally owned buildings and structures;
3. establishing a statewide board to hear appeals of HDC decisions,
as well a process for these appeals; and
4. requiring HDCs to contemporaneously broadcast their certificate
of appropriateness hearings online.
The task force must also examine any issues its chairs deem relevant.
It must report to the Planning and Development Committee by January
1, 2027.
The bill requires the six legislative leaders to each appoint one
member to the task force. The seventh member is the Department of
Economic and Community Development commissioner, or his
designee. The legislative leaders’ appointees (1) may be legislators and
(2) must be appointed within 30 days of the bill’s passage. The leaders
fill any vacancies.
The House speaker and Senate president pro tempore must select the
task force’s chairperson from among its members. The chairpersons
must schedule and hold the first meeting within 60 days after the bill’s
passage.
The Planning and Development Committee’s administrative staff
serve as the task force’s staff. The task force terminates on January 1,
2027, or when it submits its report, whichever is later.
BACKGROUND
HDCs (CGS § 7-147c et seq.)
By law, municipalities that establish a historic district must establish
an HDC to govern its operation. Buildings in the district cannot be
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demolished, erected, or altered until the commission grants a certificate
of appropriateness (after holding a public hearing). The commission
also has jurisdiction over non -residential parking areas and outdoor
advertisements within the district.
Historic Rehabilitation Tax Credit (CGS § 10-416c)
This tax credit is only for work on property (1) listed on the national
or state Register of Historic Places or (2) located in a historic district on
the national or state register and certified as contributing to the district’s
historic character.
By law, owners seeking a tax credit under this program must provide
the state with certain information before beginning rehabilitation work,
including a rehabilitation plan. In order for the project to qualify for
credits, the state must determine that the rehabilitation work meets the
U.S. interior secretary’s standards for rehabilitation. If it does, the state
reserves tax credits for the owner. When the rehabilitation is complete,
the state reviews the project for compliance with the approved
rehabilitation plan before issuing the owner a tax credit voucher. The
tax credit may be applied against the air carriers tax, community
antenna and satellite television companies tax, corporation business tax,
insurance companies tax, railroad companies tax, or utility companies
tax.
State Historical Commission
PA 25 -174, §§ 206 -208, created a 12 -member State Historical
Commission to examine and make recommendations to the legislative,
executive, and judicial branches on questions of memorialization and
commemoration related to Connecticut and U.S. history. The l aw also
required the commission to develop a (1) plan to install placards or other
signs around the capitol to give the public information on the statues
and other markers on the building’s exterior and (2) process for
identifying and commissioning additional statues that reflect the state’s
diversity, character, and accomplishments.
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COMMITTEE ACTION
Planning and Development Committee
Joint Favorable Substitute
Yea 21 Nay 0 (03/13/2026)

Appropriations Committee
Joint Favorable
Yea 41 Nay 10 (04/24/2026)