Bill > HR2941

This bill, the Historic Tax Credit Growth and Opportunity Act of 2025, proposes several significant changes to the Internal Revenue Code's historic rehabilitation tax credit (HTC) to make historic building restoration more financially attractive. First, the bill increases the rehabilitation credit from 20% to 30% for small projects with qualified rehabilitation expenditures not exceeding $3,750,000 (or $5,000,000 for rural projects), and allows these credits to be transferred to other taxpayers through a certification process. Second, the bill modifies eligibility requirements by lowering the threshold for qualifying buildings from 100% to 50% of the adjusted basis, thereby expanding the types of buildings that can receive the credit. Third, the bill eliminates the basis adjustment for rehabilitation credits, which means taxpayers can now claim the full credit without reducing the building's tax basis. Additionally, the bill modifies rules for tax-exempt use property, making the credit more accessible by changing how leased properties are evaluated for eligibility. These changes aim to incentivize historic building preservation by making renovation projects more financially feasible, particularly for smaller-scale and rural developments. The provisions would apply to properties placed in service after December 31, 2023, or after the act's enactment date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2941/all-info