Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1459

Introduced

4/10/25

Refer

4/10/25

Caption

Historic Tax Credit Growth and Opportunity Act of 2025

Impact

The bill is poised to impact the landscape of state laws concerning tax credits for rehabilitation projects. With the proposed increase in credit percentages, the bill could encourage more property owners to invest in restoring historic structures, potentially leading to economic growth in communities reliant on tourism and heritage. However, the bill also presents new complexities in tax treatment and credit transfer rules that demand careful attention from stakeholders involved in historic rehabilitation.

Summary

SB1459, also known as the Historic Tax Credit Growth and Opportunity Act of 2025, aims to amend the Internal Revenue Code to enhance the historic rehabilitation tax credit. It primarily focuses on increasing the benefits available to small projects, specifically by allowing a 30% credit for qualifying small rehabilitation projects and establishing a new threshold for rural projects. The bill’s inclusion of these measures demonstrates a clear intention to stimulate investment and revitalization in historic buildings across various regions, especially in rural areas that may need additional support. Furthermore, the effective date stipulated for these amendments is for properties placed in service after December 31, 2023.

Contention

Notable points of contention include the conditions surrounding the transferability of tax credits for small projects and how these regulations will be interpreted and enforced. While proponents tout the bill’s benefits in promoting economic development in undercapitalized areas, critics may raise concerns about the potential for misuse of tax credits or the complexity of the new rules and their administrative implications. Consequently, stakeholders must navigate these new measures to ensure that intended benefits result in sustainable outcomes for communities.