Historic Tax Credit Growth and Opportunity Act of 2025 | ChamberLight
Bills · HR 2941
IN COMMITTEE· 119TH CONGRESS
House BillHR 2941Taxation
Historic Tax Credit Growth and Opportunity Act of 2025
INTRO APR 17· LAST ACTION APR 17
READING
6MIN
COSPONSORS
48
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it aims to boost investment in historic preservation, which can help revitalize communities, create local jobs, and maintain important cultural landmarks. By making the tax credit more valuable, more flexible, and easier to use, it could encourage a greater number of historic renovations that might otherwise be too costly or complex to pursue.
If this bill becomes law, we could see more historic buildings across the country, particularly smaller projects and those in rural areas, undergo needed repairs and restoration. If it does not pass, the existing rules for the historic tax credit would remain in place, potentially leading to fewer such projects and a slower pace of historic preservation.
KEY PROVISIONS
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PROVISION 01
Allows the full 20% historic rehabilitation tax credit to be taken in the single year the renovated building is placed in service.
This provides a faster financial return for developers and property owners, potentially making projects more attractive.
PROVISION 02
Increases the rehabilitation tax credit to 30% for 'qualifying small projects' with expenditures up to $3.75 million, or $5 million for projects in rural areas.
This creates stronger financial incentives specifically for smaller-scale renovations and projects in rural communities, which often face greater funding challenges.
PROVISION 03
Permits the tax credit generated by 'qualifying small projects' to be transferred (sold) to other taxpayers.
This provides a mechanism for developers who cannot fully use the credit themselves to monetize it, thereby bringing in additional capital for historic renovations.
PROVISION 04
Lowers the financial threshold required for a renovation to be considered 'substantial rehabilitation,' making it easier for buildings to qualify for the credit.
This expands the eligibility for the historic tax credit, potentially allowing more buildings and projects to benefit.
PROVISION 05
Eliminates the requirement to reduce a building's cost basis by the amount of the rehabilitation tax credit received.
This increases the overall financial benefit for property owners by allowing higher depreciation deductions and potentially reducing future capital gains taxes.
PROVISION 06
Modifies rules so that properties leased to non-government tax-exempt entities (like certain non-profits) can qualify for the historic rehabilitation tax credit.
This expands the types of projects that can utilize the credit, particularly those involving non-profit organizations as tenants.
This bill matters because it aims to boost investment in historic preservation, which can help revitalize communities, create local jobs, and maintain important cultural landmarks. By making the tax credit more valuable, more flexible, and easier to use, it could encourage a greater number of historic renovations that might otherwise be too costly or complex to pursue.
If this bill becomes law, we could see more historic buildings across the country, particularly smaller projects and those in rural areas, undergo needed repairs and restoration. If it does not pass, the existing rules for the historic tax credit would remain in place, potentially leading to fewer such projects and a slower pace of historic preservation.
KEY PROVISIONS
AI-extracted
high
Allows the full 20% historic rehabilitation tax credit to be taken in the single year the renovated building is placed in service.
This provides a faster financial return for developers and property owners, potentially making projects more attractive.
high
Increases the rehabilitation tax credit to 30% for 'qualifying small projects' with expenditures up to $3.75 million, or $5 million for projects in rural areas.
This creates stronger financial incentives specifically for smaller-scale renovations and projects in rural communities, which often face greater funding challenges.
high
Permits the tax credit generated by 'qualifying small projects' to be transferred (sold) to other taxpayers.
This provides a mechanism for developers who cannot fully use the credit themselves to monetize it, thereby bringing in additional capital for historic renovations.
med
Lowers the financial threshold required for a renovation to be considered 'substantial rehabilitation,' making it easier for buildings to qualify for the credit.
This expands the eligibility for the historic tax credit, potentially allowing more buildings and projects to benefit.
med
Eliminates the requirement to reduce a building's cost basis by the amount of the rehabilitation tax credit received.
This increases the overall financial benefit for property owners by allowing higher depreciation deductions and potentially reducing future capital gains taxes.
med
Modifies rules so that properties leased to non-government tax-exempt entities (like certain non-profits) can qualify for the historic rehabilitation tax credit.
This expands the types of projects that can utilize the credit, particularly those involving non-profit organizations as tenants.
The amendment allowing the full 20% credit in the year placed in service applies to property placed in service after
the date of the enactment of this Act
The amendments regarding increased credit for small projects, increased eligibility, elimination of basis adjustment, and modifications for tax-exempt use property apply to property placed in service after
GLOSSARY
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Historic Rehabilitation Tax Credit
A federal tax incentive that encourages the preservation and reuse of historic buildings by providing a tax credit for a percentage of qualified rehabilitation expenses.
Internal Revenue Code of 1986
The official compilation of federal tax laws in the United States, updated regularly by Congress.
Qualified rehabilitation expenditures
The costs incurred for the physical restoration and improvement of a historic building that are eligible for the rehabilitation tax credit.
Adjusted basis
A property's original cost plus the cost of improvements, minus any depreciation or casualty losses, used to determine gain or loss for tax purposes.
Tax-exempt use property
Property that is leased to or used by a tax-exempt organization (like a government entity or a non-profit), which can sometimes affect tax benefits for the property owner.
Recapture
A provision in tax law that requires a taxpayer to pay back a tax benefit previously received if certain conditions are no longer met (e.g., if a property is sold too soon after claiming a credit).
Placed in service
ACTION TIMELINE
2 EVENTS
APR 17, 25
Introduced in House
INTROREFERRAL
APR 17, 25
Referred to the House Committee on Ways and Means.
The date when a property is ready and available for its intended use, even if it is not yet actually used.
Certified historic structure
A building that is either listed in the National Register of Historic Places or located in a registered historic district and certified by the Secretary of the Interior as being of historic significance.
