Bill > S631

This bill aims to enhance the rehabilitation tax credit for buildings located in rural areas by modifying the Internal Revenue Code of 1986. Specifically, the bill creates a new category of tax credits for "applicable rural projects," which are defined as qualified rehabilitated buildings in areas with populations under 50,000 inhabitants. For these rural projects, the rehabilitation tax credit would be increased to 40% for affordable housing projects and 30% for other projects, with a maximum of $5 million in qualified rehabilitation expenditures. The bill defines affordable housing as dwellings for households earning 80% or less of the area's median income. Additionally, the bill introduces a novel feature allowing taxpayers to transfer these rural rehabilitation credits to other taxpayers through a certified process. The bill includes provisions for recapture of credits if affordable housing requirements are not met and eliminates certain basis adjustments for these rural rehabilitation projects. These changes would apply to properties placed in service after December 31, 2025, and are designed to incentivize historic building rehabilitation in smaller, rural communities by providing more generous and flexible tax credits.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/631/all-info