From Preservation Action:
Legislation to enhance and improve the federal Historic Rehabilitation Tax Credit (HTC) was reintroduced in the Senate by Sen. Ben Cardin (D-MD), Sen. Bill Cassidy (R-LA), Sen. Maria Cantwell (D-WA) and Sen. Susan Collins (R-ME). The Historic Tax Credit Growth and Opportunity Act (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. These provisions would:
- 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
We expect similar legislation, led by Rep. Darin LaHood (R-IL) and Rep. Earl Blumenauer(D-OR), to be introduced in the House in the coming days. The House version is expected to also include a temporary provision to address recent challenges facing historic rehabilitation projects.
These enhancements are needed more now, than ever before. Unfortunately, the value of the HTC incentive has diminished over the last decade. According to National Park Service statistics, HTC applications are down 20% compared to pre-pandemic levels (2019).
We need your help to build support for this critical legislation. Reach out to your Senators and urge them to co-sponsor the Historic Tax Credit Growth and Opportunity Act (S. 639). If you have a personal contact in your Senator's office reach out to them directly. If not, you can find your Senator's contact information here. Check out our Historic Tax Credit One Pager to learn more.
Unless noted, the thoughts and opinions expressed in the article are solely that of the
author and not necessarily the opinion of the editors of PreservationDirectory.com.