Bill > HR1454

This bill aims to enhance the rehabilitation tax credit for historic buildings located in rural areas by creating a new set of provisions for what it calls "applicable rural projects". Specifically, the bill would increase the tax credit percentage for qualified rehabilitation expenditures to 40% for affordable housing projects and 30% for non-affordable housing projects in rural areas, defined as locations with populations under 50,000 inhabitants and not adjacent to larger urban areas. The bill limits the total qualifying expenditures to $5 million per project and introduces a novel feature allowing tax credits to be transferred between taxpayers through a certification process. An affordable housing project is defined as one where at least 50% of the space is housing, with at least half of that housing being new or continuing to provide affordable housing for households earning 80% or less of the area's median income. The bill also establishes a recapture provision that would impose a 100% tax penalty if the affordable housing requirements are not maintained, with a 45-day window to rectify any violations. 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 while promoting affordable housing development.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1454/all-info