From Preservation Action:

Lawmakers in the House and Senate introduced legislation that would make it easier to use the Historic Tax Credit (HTC) to rehabilitate historic schools that will continue to serve as schools. Sen. Time Kaine (D-VA) and Sen. Mark Warner (D-VA) introduced the School Infrastructure Modernization Act (S. 1523) in the Senate. Rep. Dwight Evans (D-PA) introduced companion legislation, the Rehabilitation of Historic Schools Act (H.R. 3181) in the House. Current law makes it difficult for school districts to use the HTC because it requires the renovated building to serve a different purpose than before. Both of these bills would waive that requirement, making it easier for school districts with historic but aging school buildings to finance those renovations and continue to serve as schools.

Just in Virginia an estimated 50% of school buildings are at least 50 years old and are in desperate need of renovations. While serving as Mayor of Richmond, VA, Sen. Kaine helped two historic schools in Virginia utilize HTCs by establishing a regional body to oversee the renovations.

These changes have been championed for several years and were originally included as part of a proposed infrastructure bill, along with provisions of the Historic Tax Credit Growth and Opportunity Act, that passed the House in 2021. Champions hope to include this change as part of a general tax policy rewrite later this year.