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.