From Preservation Action:
Legislation to enhance and improve the federal Historic Rehabilitation Tax Credit (HTC) was reintroduced in the House by Rep. Darin LaHood (R-IL), Rep. Earl Blumenauer (D-OR), Rep. Mike Kelly (R-PA), Rep. Terri Sewell (D-AL), Rep. Mike Turner (R-OH), and Rep. Brian Higgins (D-NY). The Historic Tax Credit Growth and Opportunity Act (H.R. 1785, S.639) is identical to the HTC-GO bill introduced in the last Congress and includes four permanent provisions that would bring more value to Historic Tax Credit projects, improve access, make more projects eligible and encourage investment in smaller rehabilitation projects. These provisions will make important changes to the HTC to encourage more building reuse and redevelopment nationwide and would be particularly impactful for small, midsize, and rural communities. The House version of the bill also includes a temporary provision to address recent challenges facing historic rehabilitation projects. These provisions would:
Permanent Provisions:
- Establishes a permanent 30% Historic Tax Credit for projects $2.5 million and less, making it easier to complete small projects
- Eliminates the HTC Basis Adjustment, bringing more value to HTCs and making it easier to pair with the Low-Income Housing Tax Credit
- Reduces the substantial rehabilitation threshold, making more buildings eligible to use the HTC
- Makes the credit easier to use by non-profits
Temporary Provision (House version only):
- This provision increases the HTC percentage from 20% to 30% for 2023 through 2026.
- The credit percentage is phased down to 26% in 2027, 23% in 2028, and returns to 20% in 2029 and thereafter.
Similar legislation was introduced in the Senate earlier this month by Sen. Ben Cardin (D-MD) and Sen. Bill Cassidy (R-LA). The Senate version does not include the temporary provision.
These enhancements are needed more now, than ever before. Unfortunately, the value of the HTC incentive has diminished over the last decade and according to National Park Service statistics, HTC applications are down 20% compared to pre-pandemic levels (2019). Historic buildings have simply become more difficult to rehabilitate.
We need your help!. Reach out to your members of Congress and urge them to co-sponsor the Historic Tax Credit Growth and Opportunity Act (H.R. 1785, S. 639) and look for opportunities to include these provisions in future legislation. Help us build on the momentum from last Congress that saw a record number of co-sponsors on the bill. If you have a personal contact in your Representative and Senators' office reach out to them directly. We've also made it easy for you to take action. Check out our action alert to learn more and easily edit and send a letter to your members of Congress. Also be sure to and share this alert with your networks!
Take Action: https://preservationaction.org/htc-go-alert