Read twice and referred to the Committee on Finance.
The bill amends the Internal Revenue Code to change the historic rehabilitation tax credit: it (1) treats the rehabilitation credit as available in the year a property is placed in service, (2) creates a higher 30% credit (versus 20%) for qualifying small projects with a $3.75 million cap (higher $5 million cap for rural projects) and allows transferability of those credits, (3) broadens building-eligibility criteria by adjusting a 50 percent adjusted-basis rule, (4) eliminates a basis-reduction rule tied to the credit, and (5) narrows "disqualified lease" treatment for certain tax-exempt use property. All changes apply to property placed in service after enactment (or after Dec 31, 2023 where specified).
Liberal emphasizes community preservation and usability; conservatives emphasize revenue loss.
Narrow, locally beneficial tax incentives attract constituency support but lack of offsets and added cost create opposition.
The bill amends the Internal Revenue Code to change the historic rehabilitation tax credit: it (1) treats the rehabilitation credit as available in the year a property is placed in service, (2) creates a higher 30% credit (versus 20%) for qualifying small projects with a $3.75 million cap (higher $5 million cap for rural projects) and allows transferability of those credits, (3) broadens building-eligibility criteria by adjusting a 50 percent adjusted-basis rule, (4) eliminates a basis-reduction rule tied to the credit, and (5) narrows "disqualified lease" treatment for certain tax-exempt use property.
All changes apply to property placed in service after enactment (or after Dec 31, 2023 where specified).
Policy is narrow and bipartisan-appealing but creates measurable fiscal cost and requires tax-committee and floor consensus or placement in a larger bill.
How solid the drafting looks.
Liberal emphasizes community preservation and usability; conservatives emphasize revenue loss.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberal emphasizes community preservation and usability; conservatives emphasize revenue loss.
Likely broadly supportive.
The bill strengthens incentives for rehabilitating historic buildings, helps small and rural projects, and makes credits more usable for nonprofits and community developers.
Concerns would focus on preventing displacement and ensuring community benefits.
Cautious support with reservations.
The bill targets small and rural projects and improves credit usability, but raises fiscal and anti-abuse questions requiring offsets and regulatory clarity.
Skeptical to opposed.
While approving incentives for private investment and rural development, the persona is concerned the bill significantly expands tax expenditures, reduces taxable basis, and enables credit transfers that erode revenue.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Policy is narrow and bipartisan-appealing but creates measurable fiscal cost and requires tax-committee and floor consensus or placement in a larger bill.
The bill has not accumulated any surfaced votes yet.
Liberal emphasizes community preservation and usability; conservatives emphasize revenue loss.
Policy is narrow and bipartisan-appealing but creates measurable fiscal cost and requires tax-committee and floor consensus or placement in…
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