Bill > S1459

This bill, known as the Historic Tax Credit Growth and Opportunity Act of 2025, proposes several significant changes to the historic rehabilitation tax credit to make it more attractive and accessible for property developers. The bill increases the rehabilitation tax credit from 20% to 30% for smaller projects (defined as those with qualified rehabilitation expenditures up to $3.75 million, or $5 million for rural areas), and allows these credits to be transferable to other taxpayers. It also expands the types of buildings eligible for the credit by modifying the basis calculation requirements, reduces the existing basis adjustment rules that previously decreased the tax benefit, and creates special rules for tax-exempt use property. Specifically, the bill allows developers to claim the full credit in the year the building is placed in service, creates a new pathway for small project credits with more favorable terms, and simplifies the process for transferring these credits between taxpayers. These changes are designed to incentivize historic building rehabilitation, particularly in smaller and rural communities, by making the tax credit more flexible and financially beneficial for developers and investors.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1459/all-info