Referred to the House Committee on Ways and Means.
This bill amends the Internal Revenue Code to change rules for the historic rehabilitation tax credit. It (1) allows the rehabilitation credit to be claimed in the year a building is placed in service, (2) creates a special 30% credit (up to $3.75M, $5M in rural areas) for qualifying small projects and permits transfer of those credits, (3) modifies eligibility tests for types of buildings, (4) removes the required basis reduction when the rehabilitation credit is claimed, and (5) narrows application of disqualified-lease rules for tax-exempt use property except for government entities.
Liberals emphasize preservation, rural gains, and nonprofit monetization
Relative to its intended legislative type, this bill is a detailed set of statutory amendments that clearly specifies substantive changes to the historic rehabilitation tax credit (rates, caps, transferability, basis treatment, and tax‑exempt use rules) and integrates those changes into the Internal Revenue Code with precise citations and effective dates.
This bill amends the Internal Revenue Code to change rules for the historic rehabilitation tax credit.
It (1) allows the rehabilitation credit to be claimed in the year a building is placed in service, (2) creates a special 30% credit (up to $3.75M, $5M in rural areas) for qualifying small projects and permits transfer of those credits, (3) modifies eligibility tests for types of buildings, (4) removes the required basis reduction when the rehabilitation credit is claimed, and (5) narrows application of disqualified-lease rules for tax-exempt use property except for government entities.
Most changes apply to property placed in service after enactment (or after 12/31/2023 for one change).
Content is attractive to preservation and development constituencies but creates material revenue loss; success likely depends on offsets or inclusion in larger compromise package.
Relative to its intended legislative type, this bill is a detailed set of statutory amendments that clearly specifies substantive changes to the historic rehabilitation tax credit (rates, caps, transferability, basis treatment, and tax‑exempt use rules) and integrates those changes into the Internal Revenue Code with precise citations and effective dates.
Liberals emphasize preservation, rural gains, and nonprofit monetization
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals emphasize preservation, rural gains, and nonprofit monetization
Generally favorable because the bill promotes preservation, rural revitalization, and monetization options for nonprofits.
Concerned about possible disproportionate benefits to well-capitalized investors and lost federal revenue without community protections.
Would press for labor, affordability, and community benefit conditions.
Cautiously supportive as a targeted incentive to spur redevelopment, especially for small and rural projects.
Worries about fiscal cost and possible complexity from transfer rules.
Would seek CBO scoring, sunset or guardrails, and clear regulations to limit abuse.
Skeptical because it expands tax expenditures and market-distorting credits.
Might accept limited historic preservation incentives, but opposes larger credits, transferability, and eliminated basis reductions without offsets.
Concerned about fiscal cost, federal intervention, and advantaging well-funded developers.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Content is attractive to preservation and development constituencies but creates material revenue loss; success likely depends on offsets or inclusion in larger compromise package.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize preservation, rural gains, and nonprofit monetization
Content is attractive to preservation and development constituencies but creates material revenue loss; success likely depends on offsets o…
Relative to its intended legislative type, this bill is a detailed set of statutory amendments that clearly specifies substantive changes to the historic rehabilitation tax credit (rates, caps, transferability, basis tr…
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