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July 2025 Policy Update

WASHINGTON, DC, July 16, 2025 – The House Republican Reconciliation Bill, “One Big Beautiful Bill”, was signed into law on July 4th. Community development advocates are celebrating that the New Markets Tax Credit is now permanent and not subject to expiration as has been the case for the last 25 years. This is a huge legislative victory and a celebration for the NMTC advocacy community. The permanency of this credit will allow for continued and uninterrupted investment in economically distressed communities for years to come.

However, the bill also rolls back clean energy credits for wind and solar energy, requiring these projects to begin construction within one year of bill passage, or be placed in service by the end of 2027, to receive the tax credit. Wind and Solar projects that begin construction by July 2026 will have four years to begin operations and receive the credit. NTCIC expects this policy to create a “pull-forward” effect, resulting in an especially active solar marketplace for the next few years. Notably, energy storage and other clean energy projects, including geothermal and hydro, still qualify for the full 48E credit through 2033.

Despite an outpouring of advocacy, no improvements for the Historic Tax Credit were included in the bill, but it is not overlooked that sustained advocacy has positively positioned the HTC to not be targeted for a rollback or elimination as it was in 2017.

There may be opportunities to improve these incentives in a bipartisan tax bill later this year or possibly another reconciliation bill. Our work is not done, and to remain in the tax code and to enact improvements, advocacy must continue and ramp up at the next opportunity for all these important incentives.

URGENT ADVOCACY NEEDED TO SUPPORT HTC-GO!

WASHINGTON, DC, June 26, 2025 – The Senate Finance Committee has released their text of the budget reconciliation tax bill and despite an outpouring of advocacy, no components of HTC-GO were included in the bill. Senator Cassidy (R-LA) is working hard to convince his colleagues to include HTC improvement provisions in the bill, however, he needs the support of other Republican Senators to get positive changes to the HTC included. Senate leadership is now working on the final changes to the bill before consideration by the full Senate. The tax portion of the bill will most likely be bundled with other non-tax related reconciliation provisions and go directly to the Senate floor for a vote. HTC advocates will need to take quick action to urge Republican Senators’ support of Senator Cassidy’s (R-LA) efforts to include HTC improvement provisions in the bill.

URGENT HELP NEEDED FROM THE FOLLOWING STATES:

If you reside in these states, please reach out to your Republican Senators: AK, AL, AR, FL, ID, IN, IA, KS, KY, ME, MS, MO, MT, NE, NC, ND, OH, OK, PA, SC, SD, TN, TX, WV, WI, WY and ask them to reach out to Senate Finance Committee, Chairman-Mike Crapo (R-ID) with their support.

EXAMPLE MESSAGE TO YOUR SENATOR:

“The Historic Tax Credit (HTC) is a critical tool for revitalization which has lost significant value over the last 12 years. Improvements provisions were not included in the Finance Committee bill text. The HTC needs to be improved to bring more value to the credits as we look at future projects. Senator Cassidy is working to include HTC improvements, outlined in the Historic Tax Credit Growth and Opportunity Act (HTC-GO/S. 1459), in the reconciliation bill. Will you please voice support to Senate Finance Committee Chairman, Mike Crapo (R-ID), for Sen. Cassidy’s efforts to improve the HTC?”

Feel free to include brief details on projects that would benefit from these improvements.

Thank you to all who have reached out to Republican Senate offices over the last few weeks and months, and we ask that you please follow up with your Senator using the above messaging.

Please activate other advocates to contact their Republican Senators. If you have the ability to contact a Republican Senator directly, please do so on behalf of the HTC.

If you are successful in your outreach, please let us know so we can follow up with Senator Cassidy and his staff.

For assistance with tax staff contacts, feel free to reach out to Mike Phillips at NTCIC (mphillips@ntcic.com) and/or sign up to join the HTC Advocacy Campaign: Click here

Please find the HTC-GO Fact Sheet for more details on the HTC-GO legislation and bill provisions.

Updated: April 25, 2025

As Congress prepares for a major tax policy overhaul in 2025, the urgency to address expiring tax provisions from the 2017 Tax Cuts and Jobs Act increases. Despite delays, the upcoming legislative session will be crucial for major tax decisions affecting individuals and corporations.

This year, we are thrilled to join our advocacy partners in several upcoming HTC advocacy events and opportunities to learn more about state historic preservation incentives and priorities. These events will provide you with the latest information on the HTC legislation and equip you with the necessary knowledge to engage with legislators and advocate for the bill’s passage.

Get ready to be inspired, informed, and energized as we work together to secure crucial support for this initiative. Don’t miss out on the chance to refresh your knowledge and align your talking points as we embark on this exciting journey toward historic preservation. Let’s make history together by supporting this critical piece of legislation!

NEW HTC-GO BILL INTRODUCED IN THE HOUSE AND SENATE

WASHINGTON, DC, April 23, 2025 – A new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) was recently introduced by Sen. Cassidy (R-LA) and Sen. Warner (D-VA) in the Senate (S. 1459) and by Reps. LaHood (R-IL) and Suozzi (D-NY) in the House. New provisions include returning to a one-year delivery of the HTC, as well as a boost from 20% to 30% in credit and the ability to transfer credits for smaller and rural projects. Now that Congress has passed a budget resolution, the House Ways and Means Committee could pass a tax bill out of committee by early May. Urgent action is needed to compel Congress to include HTC-GO provisions in the tax bill!

HTC-GO Provisions
  • Returns to a 1-year delivery of Historic Tax Credits for all projects: Since 2017, the 20% tax credit has been delivered over 5 years (4% per year); this provision will return delivery of the HTC to 1 year.
  • Lowers the Substantial Rehab Test from 100% to 50% of a building’s basis: Lowers the substantial rehabilitation threshold, making more projects eligible to use the HTC.
  • Eliminates the HTC Basis Adjustment Requirement: Eliminates the requirement that the amount of the HTC must be deducted from a building’s basis (the property’s cost for tax purposes), increasing the value of the HTC and making it much easier to pair with the federal Low-Income Housing Tax Credit.
  • Modifies Tax Exempt Use Rules: Makes the HTC easier to use by nonprofits such as community health centers, local arts centers, affordable housing, homeless services, museums, theaters, and others by eliminating tax code restrictions that make it challenging for nonprofits to partner with developers.
  • Increases the credit for smaller projects: Projects below $3.75 million will receive a 30% credit. Rural projects below $5 million will receive a 30% credit. (Rural Definition: Cities/towns with populations less than 50,000 and not contiguous and adjacent to cities/towns of 50,000 in population). All small projects are eligible for direct transfer, without need of a partnership-style investment.

Please ask your members of Congress to cosponsor the Historic Tax Credit Growth and Opportunity Act (HTC-GO) and urge its inclusion in the emerging tax bill.

ACT NOW: Join the 1000 Actions in 100 Days HTC Advocacy Effort

The Historic Tax Credit Coalition and partnering national preservation organizations are excited to share that we have exceeded 1000 contacts to Capitol Hill to strengthen and defend the Historic Tax Credit in 2025. Thank you to all who are participating in these advocacy efforts!

While this is a great victory, it’s not too late to join this effort! We need more people to vocalize their support for the HTC. Click here and fill in your 9-digit zip code to receive talking points, updates, and the legislative staff contacts of your members of Congress to take action.

We are facing one of the best opportunities to improve the HTC that we have had in many years. All members of Congress — both representatives and senators — must hear from advocates promptly to build support for the HTC-GO bill and urge inclusion in the emerging tax bill.

Please share the information in this blog with other preservation and historic rehab advocates willing to commit to contacting their members of Congress in the first 100 days of 2025.

HTCC DC Lobby Day: Wednesday, June 11

The Historic Tax Credit Coalition is hosting its annual HTC Lobby Day in Washington, D.C. on June 11.  We are facing one of the best opportunities to improve the HTC that we have had in many years. Representatives and Senators need to hear from advocates like you to build support for the HTC-GO bill and urge inclusion in the emerging tax bill.  If you are a resident or have projects in any of the following states: AK, AL, AZ, AR, FL, ID, IN, IA, KS, KY, LA, ME, MS, MO, MT, NE, NY, NC, ND, OH, OK, PA, SC, SD, TN, TX, WV, WI, WY, this is the year to come to D.C.  Thank you to all who have already signed up!  To participate, please email Mike Phillips at mphillips@ntcic.com.  Since June 11 is the day before many in the HTC industry are in town for the IPED Historic Tax Credit Conference, the Coalition anticipates a strong showing from the historic rehabilitation industry and Main Street and preservation advocates on Capitol Hill.

The Coalition will set up your meetings and provide educational materials, including maps and lists of projects for each state and congressional district.  Though most advocates fly in the night before, some participants will fly in early on June 11.  The Coalition will host a mid-morning breakfast briefing, then head to Capitol Hill between 11 am and 12 pm for an afternoon of meetings. For more details on the IPED Historic Tax Credit Conference on June 12  and 13, click here.

Background on Budget Reconciliation-Tax Bill

Republicans are planning to use budget reconciliation to try to extend the $4.7 trillion Tax Cuts and Jobs Act (TCJA) provisions, along with other presidential and congressional tax priorities. Both the House and Senate passed a budget resolution unlocking the ability to pass FY25 budget reconciliation bills out of directed committees. At the end of this process, one large reconciliation bill will be considered by both chambers. The large bill will include border, energy, and defense funding in addition to tax extensions and new priorities. Committees are determining the details of about $1.5 – $2.0 trillion in budget offsets for what could likely be up to a $5 trillion bill. House Republicans have scheduled a vote on the House floor for the week of May 19th, which means the tax bill could pass the Ways and Means Committee as soon as early May.

Advocates are contacting offices, closely monitoring the reconciliation bill efforts, and working with our congressional champions to continue voicing support for enhancing HTC in the tax code. We have more support for historic tax credits than ever before. At the same time, with tremendous budget pressure to finance Republican priorities, we remain vigilant with HTC congressional champions in assessing potential rollbacks as cost-saving measures to community development incentives.

Talking Points, Outreach Guides, and Resources for HTC-GO Advocacy

Now more than ever, advocates need your support to urge members of Congress to Cosponsor the Historic Tax Credit Growth & Opportunity Act (HTC-GO). To help, we have put together a collection of resources, outreach guides, and talking points to help you take action for the HTC-GO and help make this bill a reality.

History of the Historic Tax Credit

The federal Historic Tax Credit (HTC) is a critical community development tool used to encourage investment in the rehabilitation of historic buildings nationwide. Since the program’s establishment in 1976, the HTC has leveraged nearly $235 billion in private investment to preserve more than 49,000 historic properties and support more than 3.2 million jobs. 

Unfortunately, the value of the HTC has diminished over the past decade because of IRS rulings, administrative burdens, and other legislative changes. In an effort to expand and enhance this critical community development program, Congress introduced the Historic Tax Credit Growth & Opportunity Act (HTC-GO). It includes provisions that would encourage more building reuse and redevelopment nationwide and would be particularly impactful for small, midsize, and rural communities.

Learn About the Historic Tax Credit, Advocacy Efforts, and the HTC-GO

Take Action for the HTC-GO

  • Search for local and political events or join a local political party’s email list to learn about events your members of Congress might be attending.
  • Connect with NTCIC for assistance in obtaining the contact information of the scheduling office for your members of Congress.
  • Invite your Representative to tour successful Historic Tax Credit-supported projects.
  • Request cosponsorship through the National Trust for Historic Preservation’s E-Advocacy Tool.
  • Utilize the suggested talking points below for your conversations with your members of Congress.

HTC-GO Talking Points & Advocacy Requests

  • The number of historic preservation projects has significantly decreased over the past several years – by as much as 20%.
  • In addition to skyrocketing costs of materials and labor and rising interest rates, the Historic Tax Credit – our country’s most powerful tool for preservation has lost power and value.
  • Historic Tax Credits have lost value over the past ten years due to IRS revenue procedures and other recent federal policies.
  • Pricing of the credits has dropped 20-25% over the last ten years.
  • “Now is the time to strengthen the Historic Tax Credit to address the slowdown and challenges in rehabilitation projects across the country.”
  • The HTC has not been positively modernized since 1986. In light of other federal investment tax credits being significantly enhanced recently, it is important to improve this incentive.
  • “Would you please cosponsor House Bill H.R. 1785/Senate Bill S. 639 – The Historic Tax Credit Growth and Opportunity Act (HTC-GO) and work to include these provisions in year-end legislation?”
  • The Historic Tax Credit Growth and Opportunity Act (HTC-GO H.R. 1785/S. 639) would bring more value to the credit, make more historic buildings eligible to use the HTC, further incentivize smaller projects and nonprofit projects, and make the credit easier to use.

Urge your Representative and Senators to Cosponsor

March 27, 2023: Late last week, Representatives Darin LaHood (R-IL) and Earl Blumenauer (D-OR), Mike Kelly (R-PA), Terri Sewell (D-AL), Mike Turner (R-OH), and Brian Higgins (D-NY) reintroduced the House version of Historic Tax Credit Growth and Opportunity Act (HTC-GO/H.R. 1785). The bill includes similar permanent provisions as the Senate version and an additional temporary provision to address recent challenges facing historic rehabilitation projects.

In early March, Senators Cardin (D-MD), Cassidy (R-LA), Cantwell (D-WA), and Collins (R-ME) reintroduced HTC-GO (S. 639). Both the House and Senate bills include four permanent provisions that will add value to the Historic Tax Credit (HTC), improve access to the credit, make more projects eligible to use the credit, and increase investment in smaller rehabilitation projects.

How You Can Help Advocate for the HTC-GO
  1. Contact your Representative and Senators:
    • To locate your House Representative, visit: www.house.gov/representatives
    • To locate your Senators, visit: www.senate.gov/senators/senators-contact
    • Send a message through their website and select “tax” or “taxation” as the issue area, OR
    • Call (during office hours) the office, introduce yourself as a constituent, and ask for the email address of tax staff members.
  2. Talking Points to Encourage Your Members of Congress to Cosponsor the HTC-GO:
    • “The Historic Tax Credit Growth and Opportunity Act (HTC-GO), H.R. 1785/ S. 639, is needed now more than ever.”
    • “The Historic Tax Credit is a vital community revitalization tool in both small towns and large urban areas but has lost value due to federal policies over the last ten years.”
    • “The HTC has not been positively modernized since 1986. HTC-GO provisions would bring more value to the credit, make more buildings eligible to use the credit, and make the HTC easier to use.”
    • “Would the Representative/Senator please cosponsor the Historic Tax Credit Growth and Opportunity Act (H.R. 1785/S. 639)?”
    • “Please look for opportunities to include these provisions in future tax legislation.”
    • “Share the National Preservation Organizations HTC-GO Reintroduction Release with offices.”
About the Provisions of the HTC-GO Legislation

The federal HTC is the largest federal investment in historic preservation and a critical economic development tool used to revitalize our communities. Unfortunately, the value of the HTC incentive has diminished over the past decade because of IRS rulings, administrative burdens, changes in the credit structure, as well as spreading the distribution of the credit over five years as modified by the Tax Cuts and Jobs Act of 2017. As a result, the HTC has lost 20 – 25% of its investment value as interest rates continue to climb and materials and labor costs soar.

National Park Service statistics indicate that HTC applications are down 20% compared to pre-pandemic levels (2019), and the number of projects continues to decline even as the economy is rebounding.

Historic buildings have simply become more difficult to rehabilitate.

HTC-GO Temporary Provisions (House Bill Only)

The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) to address profound challenges facing the historic rehabilitation sector.

  • 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.
HTC-GO Permanent Provisions (House and Senate Bills)

The permanent 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:

  • Make the credit easier to use by increasing the credit from 20% to 30% for projects with less than $2.5 million in qualified rehabilitation expenses.
  • Make more projects eligible to use the HTC by lowering the substantial rehabilitation threshold.
  • Increase the value of HTCs and promote affordable housing development by eliminating the requirement that the value of the HTC must be deducted from a building’s basis (property’s value for tax purposes), making it easier to pair with the federal Low-Income Housing Tax Credit.
  • Enable further nonprofit use of the HTC by eliminating IRS restrictions that make it challenging for nonprofits to partner with developers. This change will create more opportunities for workforce development facilities, job/small business incubators, community health centers, local arts centers, affordable housing, and homeless services to be supported by the HTC.
Resources

For further assistance with your advocacy, please contact Mike Phillips, Shaw Sprague, and Patrick Robertson

March 2, 2023: Today, Senators Cardin (D-MD), Cassidy (R-LA), Cantwell (D-WA), and Collins (R-ME) reintroduced the Historic Tax Credit Growth and Opportunity Act (HTC-GO/ S. 639), in the Senate. The bill includes four permanent provisions that will add value to the Historic Tax Credit (HTC), improve access to the credit, make more projects eligible to use the credit, and increase investment in smaller rehabilitation projects.

Representatives Darin LaHood (R-IL) and Earl Blumenauer (D-OR) are expected to reintroduce a House companion HTC-GO bill next week. The bill will include similar permanent provisions and an additional temporary provision to address recent challenges facing historic rehabilitation projects.

How You Can Help Advocate for the HTC-GO
  1. Contact your Senators:
    • Visit the senate.gov contact list to locate your Senators
    • Send a message through their website and select “tax” or “taxation” as the issue area, OR
    • Call (during office hours) the office, introduce yourself as a constituent, and ask for the email address of tax staff members.
  2. Talking Points to Encourage Your Senators to Cosponsor the HTC-GO:
    • The Historic Tax Credit Growth and Opportunity Act (HTC-GO/ S. 639) is needed now more than ever.
    • The Historic Tax Credit is a vital community revitalization tool in small towns and large urban areas but has lost value due to federal policies over the last ten years.
    • The HTC has not been positively modernized since 1986. HTC-GO provisions would bring more value to the credit, make more buildings eligible to use the credit, and make the HTC easier to use.
    • Would the Senator please cosponsor the Historic Tax Credit Growth and Opportunity Act (S. 639)?
    • Please look for opportunities to include these provisions in future tax legislation.
About the Provisions of the HTC-GO Legislation

The federal HTC is the largest federal investment in historic preservation and a critical economic development tool used to revitalize our communities. Unfortunately, the value of the HTC incentive has diminished over the past decade because of IRS rulings, administrative burdens, changes in the credit structure, as well as spreading the distribution of the credit over five years as modified by the Tax Cuts and Jobs Act of 2017. As a result, the HTC has lost 20 – 25% of its investment value as interest rates continue to climb and materials and labor costs soar.

National Park Service statistics indicate that HTC applications are down 20% compared to pre-pandemic levels (2019), and the number of projects continues to decline even as the economy is rebounding.

Historic buildings have simply become more difficult to rehabilitate.

HTC-GO Permanent Provisions

The permanent 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:

  • Make the credit easier to use by increasing the credit from 20% to 30% for projects with less than $2.5 million in qualified rehabilitation expenses.
  • Make more projects eligible to use the HTC by lowering the substantial rehabilitation threshold.
  • Increase the HTC’s value and promote affordable housing development by eliminating the requirement that the value of the HTC must be deducted from a building’s basis (property’s value for tax purposes), making it easier to pair with the federal Low-Income Housing Tax Credit.
  • Enable further nonprofit use of the HTC by eliminating IRS restrictions that make it challenging for nonprofits to partner with developers. This change will create more opportunities for workforce development facilities, job/small business incubators, community health centers, local arts centers, affordable housing, and homeless services to be supported by the HTC.
Resources

For further assistance with your advocacy, please contact Mike Phillips, Shaw Sprague, and Patrick Robertson

The federal Historic Tax Credit (HTC) is a critical community development tool used to encourage investment in the rehabilitation of historic buildings nationwide. Since the program’s establishment in 1976, the HTC has leveraged nearly $120 billion in private investment to preserve more than 48,000 historic properties and support more than 3 million jobs. The credit is also often paired, or “twinned,” with other programs such as the Low-Income Housing Tax Credit and the New Markets Tax Credit, which has helped to create nearly 200,000 units of low- and moderate-income housing units and increase access to vital community goods and services.

Unfortunately, the value of the HTC has diminished over the past decade because of IRS rulings, administrative burdens, changes in the credit structure, and spreading the distribution of the credit over five years as modified by the Tax Cuts and Jobs Act of 2017. As a result, the HTC has lost 20 – 25% of its investment value as interest rates continue to climb and materials and labor costs soar. National Park Service statistics indicate that HTC applications over the last two fiscal years are down 20 percent when compared to 2019 and prior years. Historic buildings have simply become more difficult to rehabilitate.

So, What is the Historic Tax Credit Growth & Opportunity Act?

In an effort to expand and enhance this critical community development program, Congress introduced the Historic Tax Credit Growth & Opportunity Act (HTC-GO). It includes provisions that would bring five more tools to the HTC: More Credits, More Value, More Buildings, More Nonprofit Use, and More Simplicity.

Let’s take a look at what the Historic Tax Credit Growth & Opportunity Act will do to enhance and expand the power of the Historic Tax Credit.

HTC Percentage Increase

Currently, the HTC provides a 20% credit to project costs directly associated with the repair or improvement of historic structural and architectural features of a building, also known as qualified rehabilitation expenditures (QREs). This percentage is the foundation for all equations for determining the value of the HTC through the rehabilitation process.

For example, under the current law, a project with $200,000 in historic rehabilitation costs could receive up to $40,000 in HTCs ($200,000 x 20% = $40,000).

If passed, this bill will increase the HTC percentage from 20% to 30% through 2025. This is a 50% increase in value and benefit to historic preservation projects, so that same project with $200,000 in rehab costs would generate $60,000 in credits ($200,000 x 30% = $60,000). For projects generating more than $2.5 million in QREs, the increase would be in effect from 2020 through 2025 before gradually returning to 20% in 2028. Properties must complete the rehabilitation efforts after March 31, 2021, to be eligible for this provision.

What is the Historic Tax Credit Growth & Opportunity Act?

The Historic Tax Credit enhancements will better support community development projects like the Academy Lofts building in Atlanta, GA, the new home to The Creatives Project, a nonprofit organization providing quality arts-based education & outreach through artist-in-residency programs.

 

Permanent Increase in the Rehabilitation Credit for Small Projects

The HTC is not just for large-scale projects and developers. In fact, over half of all completed historic projects that utilized the HTC were under $2.5 million in qualified costs.

For these smaller projects, after December 31, 2023, a taxpayer would be able to elect a “small project credit” and receive the 30% tax credit for projects with qualified costs up to $2.5 million or less. This increase for small projects would be permanent. This change would ensure rural and non-urban areas are better positioned to benefit from utilizing HTCs even after the temporary 30% credit for larger projects expires in 2025.

Redefinition of “Substantial Rehabilitation”

To be eligible for HTCs, a project must pass the “Substantial Rehabilitation” test. Generally, this means that a project must spend the greater of either $5,000 or the pre-rehabbed worth of the building itself, also known as the “adjusted basis.” Currently, a project can determine its adjusted basis by completing the equation A-B-C+D = Adjusted Basis, where:

A.     Purchase price of the property, both building and land

B.     The cost of the land at the time of purchase

C.     Depreciation taken for an income-producing property

D.     Costs of improvements made to the property since its purchase

The new provision cuts the substantial rehabilitation requirement in half so that qualified rehabilitation expenditures must exceed the greater of 50% of the adjusted basis of the building rather than 100%. This reduction effectively updates the adjusted basis equation to (A-B-C+D)/2 = Adjusted Basis.

Lowering the rehabilitation cost requirements will greatly increase the HTC eligibility for countless projects and make the cost of entry much more approachable.

For example, an individual purchased a historic building for $200,000 ($150,000 for the building and $50,000 for the land). Under current law, the building’s new owners would need to incur at least $150,000 in rehabilitation costs to qualify for the credit. The new bill provision would reduce this threshold to $75,000 in rehabilitation costs.

Elimination of Rehabilitation Credit Basis Adjustment

For a larger-scale project to generate project funding at the onset of development using the HTC, rather than claiming the credits come tax season, a building owner needs to partner with an investor that has both the ability to use the credits themselves and available funding. The investor can then provide financing to the project, typically a percentage of a dollar per credit, in exchange for the ability to claim the credits themselves – lowering the amount of taxes the investor owes at the end of the year.

Currently, the financial and legal process of a building owner and investor partnering in this way requires an investor to recognize income in the amount of credits they can claim, which often results in a lower price per credit the investor can offer to a project. Essentially, the current law lowers the dollar value of the HTC, and the amount of funding a project can receive from an investor.

With the new provision, an investor no longer needs to recognize income in the amount of the HTC to claim the credit. By eliminating this adjustment, an investor can provide more funding per credit to a project. Though complex, this change would place the HTC in line with other development credits like the Low Income Housing Tax Credit (LIHTC) and make it easier to use with such programs.

Modifications Regarding Certain Tax-Exempt Use Property

Currently, to generate HTCs, a building owner and its tenants must be taxable entities. This requirement prevents many nonprofit healthcare centers, daycare organizations, arts organizations, and community service providers from engaging in historic preservation activities, especially if they already own and use their historic property.

This provision would amend and remove certain leasing and tax-exempt use restrictions, making the HTC easier to access by nonprofits that provide critical community services and other tax-exempt entities.

Click Here to Contact Your Representative