| 1 | 1 | | I |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION H. R. 2941 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to improve the historic |
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| 6 | 6 | | rehabilitation tax credit, and for other purposes. |
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| 7 | 7 | | IN THE HOUSE OF REPRESENTATIVES |
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| 8 | 8 | | APRIL17, 2025 |
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| 9 | 9 | | Mr. L |
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| 10 | 10 | | AHOOD(for himself and Mr. SUOZZI) introduced the following bill; |
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| 11 | 11 | | which was referred to the Committee on Ways and Means |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To amend the Internal Revenue Code of 1986 to improve |
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| 14 | 14 | | the historic rehabilitation tax credit, and for other purposes. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘Historic Tax Credit 4 |
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| 19 | 19 | | Growth and Opportunity Act of 2025’’. 5 |
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| 20 | 20 | | SEC. 2. FULL CREDIT ALLOWED IN THE YEAR BUILDING 6 |
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| 21 | 21 | | PLACED IN SERVICE. 7 |
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| 22 | 22 | | (a) I |
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| 23 | 23 | | NGENERAL.—Section 47(a) of the Internal Rev-8 |
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| 24 | 24 | | enue Code of 1986 is amended to read as follows: 9 |
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| 26 | 26 | | mprince on LAP1J3WLY3PROD with $$_JOB 2 |
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| 27 | 27 | | •HR 2941 IH |
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| 28 | 28 | | ‘‘(a) GENERALRULE.—For purposes of section 46, 1 |
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| 29 | 29 | | the rehabilitation credit for any taxable year is 20 percent 2 |
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| 30 | 30 | | of the qualified rehabilitation expenditures.’’. 3 |
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| 31 | 31 | | (b) E |
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| 32 | 32 | | FFECTIVEDATE.—The amendment made by 4 |
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| 33 | 33 | | this section shall apply to property placed in service after 5 |
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| 34 | 34 | | December 31, 2023. 6 |
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| 35 | 35 | | SEC. 3. INCREASE IN THE REHABILITATION CREDIT FOR 7 |
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| 36 | 36 | | CERTAIN SMALL PROJECTS. 8 |
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| 37 | 37 | | (a) I |
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| 38 | 38 | | NGENERAL.—Section 47 of the Internal Rev-9 |
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| 39 | 39 | | enue Code of 1986 is amended by adding at the end the 10 |
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| 40 | 40 | | following new subsection: 11 |
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| 41 | 41 | | ‘‘(e) S |
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| 42 | 42 | | PECIALRULEREGARDINGCERTAINSMALL 12 |
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| 43 | 43 | | P |
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| 44 | 44 | | ROJECTS.— 13 |
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| 45 | 45 | | ‘‘(1) I |
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| 46 | 46 | | N GENERAL.—In the case of any quali-14 |
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| 47 | 47 | | fying small project with respect to which there is an 15 |
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| 48 | 48 | | election in effect under this subsection— 16 |
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| 49 | 49 | | ‘‘(A) the total qualified rehabilitation ex-17 |
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| 50 | 50 | | penditures taken into account for purposes of 18 |
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| 51 | 51 | | this section with respect to the rehabilitation 19 |
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| 52 | 52 | | shall not exceed $3,750,000, 20 |
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| 53 | 53 | | ‘‘(B) subsection (a) shall be applied by 21 |
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| 54 | 54 | | substituting ‘30 percent’ for ‘20 percent’, and 22 |
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| 55 | 55 | | ‘‘(C) subject to paragraph (4) and such 23 |
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| 56 | 56 | | regulations or other guidance as the Secretary 24 |
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| 57 | 57 | | may provide, the taxpayer may transfer all or 25 |
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| 59 | 59 | | mprince on LAP1J3WLY3PROD with $$_JOB 3 |
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| 60 | 60 | | •HR 2941 IH |
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| 61 | 61 | | a portion of the credit determined under this 1 |
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| 62 | 62 | | section with respect to such qualifying small 2 |
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| 63 | 63 | | project. 3 |
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| 64 | 64 | | ‘‘(2) Q |
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| 65 | 65 | | UALIFYING SMALL PROJECT .—For pur-4 |
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| 66 | 66 | | poses of this subsection, the term ‘qualifying small 5 |
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| 67 | 67 | | project’ means any qualified rehabilitated building or 6 |
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| 68 | 68 | | portion thereof if— 7 |
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| 69 | 69 | | ‘‘(A) such building is placed in service 8 |
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| 70 | 70 | | after the date of the enactment of this sub-9 |
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| 71 | 71 | | section, and 10 |
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| 72 | 72 | | ‘‘(B) no credit was allowed under this sec-11 |
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| 73 | 73 | | tion (other than a credits allowed by reason of 12 |
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| 74 | 74 | | subsection (d)) for either of the two imme-13 |
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| 75 | 75 | | diately preceding taxable years with respect to 14 |
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| 76 | 76 | | such building. 15 |
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| 77 | 77 | | ‘‘(3) S |
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| 78 | 78 | | PECIAL RULE FOR RURAL PROJECTS .— 16 |
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| 79 | 79 | | ‘‘(A) I |
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| 80 | 80 | | N GENERAL.—In the case of any 17 |
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| 81 | 81 | | qualifying small project in a rural area, para-18 |
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| 82 | 82 | | graph (1)(A) shall be applied by substituting 19 |
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| 83 | 83 | | ‘$5,000,000’ for ‘$3,750,000’. 20 |
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| 84 | 84 | | ‘‘(B) R |
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| 85 | 85 | | URAL AREA.—For purposes of this 21 |
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| 86 | 86 | | subparagraph, the term ‘rural area’ means any 22 |
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| 87 | 87 | | area other than— 23 |
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| 89 | 89 | | mprince on LAP1J3WLY3PROD with $$_JOB 4 |
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| 90 | 90 | | •HR 2941 IH |
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| 91 | 91 | | ‘‘(i) a city or town that has a popu-1 |
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| 92 | 92 | | lation of greater than 50,000 inhabitants, 2 |
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| 93 | 93 | | or 3 |
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| 94 | 94 | | ‘‘(ii) the urbanized area contiguous 4 |
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| 95 | 95 | | and adjacent to a city or town described in 5 |
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| 96 | 96 | | clause (i), as defined by the Bureau of the 6 |
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| 97 | 97 | | Census based on the latest decennial cen-7 |
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| 98 | 98 | | sus of the United States. 8 |
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| 99 | 99 | | ‘‘(4) T |
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| 100 | 100 | | RANSFER OF CREDIT FOR QUALIFYING 9 |
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| 101 | 101 | | SMALL PROJECTS.— 10 |
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| 102 | 102 | | ‘‘(A) C |
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| 103 | 103 | | ERTIFICATION.— 11 |
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| 104 | 104 | | ‘‘(i) I |
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| 105 | 105 | | N GENERAL.—A transfer under 12 |
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| 106 | 106 | | paragraph (1)(C) shall be accompanied by 13 |
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| 107 | 107 | | a certificate which includes— 14 |
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| 108 | 108 | | ‘‘(I) the certification for the cer-15 |
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| 109 | 109 | | tified historic structure referred to in 16 |
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| 110 | 110 | | subsection (c)(3), 17 |
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| 111 | 111 | | ‘‘(II) the taxpayer’s name, ad-18 |
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| 112 | 112 | | dress, tax identification number, date 19 |
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| 113 | 113 | | of project completion, and the amount 20 |
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| 114 | 114 | | of credit being transferred, 21 |
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| 115 | 115 | | ‘‘(III) the transferee’s name, ad-22 |
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| 116 | 116 | | dress, tax identification number, and 23 |
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| 117 | 117 | | the amount of credit being trans-24 |
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| 118 | 118 | | ferred, and 25 |
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| 119 | 119 | | VerDate Sep 11 2014 10:04 May 01, 2025 Jkt 000000 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2941.IH H2941 |
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| 120 | 120 | | mprince on LAP1J3WLY3PROD with $$_JOB 5 |
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| 121 | 121 | | •HR 2941 IH |
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| 122 | 122 | | ‘‘(IV) such other information as 1 |
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| 123 | 123 | | may be required by the Secretary. 2 |
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| 124 | 124 | | ‘‘(ii) T |
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| 125 | 125 | | RANSFERABILITY OF CERTIFI -3 |
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| 126 | 126 | | CATE.—A certificate issued under this sub-4 |
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| 127 | 127 | | section to a taxpayer shall be transferable 5 |
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| 128 | 128 | | to any other taxpayer. 6 |
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| 129 | 129 | | ‘‘(B) T |
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| 130 | 130 | | AX TREATMENT RELATING TO CER -7 |
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| 131 | 131 | | TIFICATE.— 8 |
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| 132 | 132 | | ‘‘(i) D |
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| 133 | 133 | | ISALLOWANCE OF DEDUC -9 |
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| 134 | 134 | | TION.—No deduction shall be allowed for 10 |
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| 135 | 135 | | the amount of consideration paid or in-11 |
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| 136 | 136 | | curred by the transferee. 12 |
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| 137 | 137 | | ‘‘(ii) A |
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| 138 | 138 | | LLOWANCE OF CREDIT .—The 13 |
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| 139 | 139 | | amount of credit transferred under para-14 |
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| 140 | 140 | | graph (1)(C)— 15 |
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| 141 | 141 | | ‘‘(I) shall not be allowed to the 16 |
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| 142 | 142 | | transferor for any taxable year, and 17 |
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| 143 | 143 | | ‘‘(II) shall be allowable to the 18 |
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| 144 | 144 | | transferee as a credit determined 19 |
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| 145 | 145 | | under this section for the taxable year 20 |
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| 146 | 146 | | of the transferee in which such credit 21 |
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| 147 | 147 | | is transferred. 22 |
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| 148 | 148 | | ‘‘(iii) E |
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| 149 | 149 | | XCLUSION.—Gross income 23 |
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| 150 | 150 | | shall not include any amount received in 24 |
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| 152 | 152 | | mprince on LAP1J3WLY3PROD with $$_JOB 6 |
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| 153 | 153 | | •HR 2941 IH |
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| 154 | 154 | | connection with the transfer of the certifi-1 |
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| 155 | 155 | | cate. 2 |
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| 156 | 156 | | ‘‘(C) R |
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| 157 | 157 | | ECAPTURE AND OTHER SPECIAL 3 |
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| 158 | 158 | | RULES.—The taxpayer who claims a credit de-4 |
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| 159 | 159 | | termined under this section by reason of a 5 |
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| 160 | 160 | | transfer of an amount of credit under para-6 |
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| 161 | 161 | | graph (1)(A) with respect to an applicable rural 7 |
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| 162 | 162 | | project shall be treated as the taxpayer with re-8 |
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| 163 | 163 | | spect to such project for purposes of section 50. 9 |
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| 164 | 164 | | ‘‘(D) I |
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| 165 | 165 | | NFORMATION REPORTING .—The 10 |
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| 166 | 166 | | transferor and the transferee shall each make 11 |
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| 167 | 167 | | such reports regarding the transfer of an 12 |
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| 168 | 168 | | amount of credit under paragraph (1)(C) and 13 |
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| 169 | 169 | | containing such information as the Secretary 14 |
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| 170 | 170 | | may require. The reports required by this sub-15 |
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| 171 | 171 | | paragraph shall be filed at such time and in 16 |
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| 172 | 172 | | such manner as may be required by the Sec-17 |
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| 173 | 173 | | retary. 18 |
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| 174 | 174 | | ‘‘(E) R |
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| 175 | 175 | | EGULATIONS.—The Secretary shall 19 |
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| 176 | 176 | | prescribe regulations or other guidance to carry 20 |
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| 177 | 177 | | out paragraph (1)(C) and this paragraph in a 21 |
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| 178 | 178 | | manner which is consistent with applicable re-22 |
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| 179 | 179 | | quirements with respect to transfer of credits 23 |
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| 180 | 180 | | under section 6418. 24 |
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| 182 | 182 | | mprince on LAP1J3WLY3PROD with $$_JOB 7 |
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| 183 | 183 | | •HR 2941 IH |
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| 184 | 184 | | ‘‘(5) ELECTION.—An election under this sub-1 |
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| 185 | 185 | | section shall be made at such time and in such man-2 |
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| 186 | 186 | | ner as the Secretary may by regulations prescribe.’’. 3 |
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| 187 | 187 | | (b) E |
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| 188 | 188 | | FFECTIVEDATE.—The amendment made by 4 |
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| 189 | 189 | | this section shall apply to property placed in service after 5 |
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| 190 | 190 | | the date of the enactment of this Act. 6 |
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| 191 | 191 | | SEC. 4. INCREASING THE TYPE OF BUILDINGS ELIGIBLE 7 |
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| 192 | 192 | | FOR REHABILITATION. 8 |
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| 193 | 193 | | (a) I |
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| 194 | 194 | | NGENERAL.—Section 47(c)(1)(B)(i)(I) of the 9 |
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| 195 | 195 | | Internal Revenue Code of 1986 is amended by inserting 10 |
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| 196 | 196 | | ‘‘50 percent of’’ before ‘‘the adjusted basis’’. 11 |
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| 197 | 197 | | (b) E |
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| 198 | 198 | | FFECTIVEDATE.—The amendment made by 12 |
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| 199 | 199 | | subsection (a) shall apply to property placed in service 13 |
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| 200 | 200 | | after the date of the enactment of this Act. 14 |
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| 201 | 201 | | SEC. 5. ELIMINATION OF REHABILITATION CREDIT BASIS 15 |
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| 202 | 202 | | ADJUSTMENT. 16 |
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| 203 | 203 | | (a) I |
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| 204 | 204 | | NGENERAL.—Section 50(c) of the Internal Rev-17 |
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| 205 | 205 | | enue Code of 1986 is amended by adding at the end the 18 |
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| 206 | 206 | | following new paragraph: 19 |
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| 207 | 207 | | ‘‘(6) E |
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| 208 | 208 | | XCEPTION FOR REHABILITATION CRED -20 |
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| 209 | 209 | | IT.—In the case of the rehabilitation credit, para-21 |
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| 210 | 210 | | graph (1) shall not apply.’’. 22 |
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| 211 | 211 | | (b) T |
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| 212 | 212 | | REATMENT INCASE OFCREDITALLOWED TO 23 |
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| 213 | 213 | | L |
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| 214 | 214 | | ESSEE.—Section 50(d) of such Code is amended by add-24 |
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| 215 | 215 | | ing at the end the following: ‘‘In the case of the rehabilita-25 |
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| 217 | 217 | | mprince on LAP1J3WLY3PROD with $$_JOB 8 |
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| 218 | 218 | | •HR 2941 IH |
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| 219 | 219 | | tion credit, paragraph (5)(B) of the section 48(d) referred 1 |
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| 220 | 220 | | to in paragraph (5) of this subsection shall not apply.’’. 2 |
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| 221 | 221 | | (c) E |
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| 222 | 222 | | FFECTIVEDATE.—The amendments made by 3 |
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| 223 | 223 | | this section shall apply to property placed in service after 4 |
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| 224 | 224 | | the date of the enactment of this Act. 5 |
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| 225 | 225 | | SEC. 6. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT 6 |
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| 226 | 226 | | USE PROPERTY. 7 |
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| 227 | 227 | | (a) I |
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| 228 | 228 | | NGENERAL.—Section 47(c)(2)(B)(v) of the In-8 |
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| 229 | 229 | | ternal Revenue Code of 1986 is amended by adding at the 9 |
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| 230 | 230 | | end the following new subclause: 10 |
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| 231 | 231 | | ‘‘(III) D |
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| 232 | 232 | | ISQUALIFIED LEASE 11 |
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| 233 | 233 | | RULES TO APPLY ONLY IN CASE OF 12 |
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| 234 | 234 | | GOVERNMENT ENTITY .—For purposes 13 |
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| 235 | 235 | | of subclause (I), except in the case of 14 |
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| 236 | 236 | | a tax-exempt entity described in sec-15 |
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| 237 | 237 | | tion 168(h)(2)(A)(i), the determina-16 |
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| 238 | 238 | | tion of whether property is tax-exempt 17 |
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| 239 | 239 | | use property shall be made under sec-18 |
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| 240 | 240 | | tion 168(h) without regard to whether 19 |
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| 241 | 241 | | the property is leased in a disqualified 20 |
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| 242 | 242 | | lease (as defined in section 21 |
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| 243 | 243 | | 168(h)(1)(B)(ii)).’’. 22 |
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| 245 | 245 | | mprince on LAP1J3WLY3PROD with $$_JOB 9 |
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| 246 | 246 | | •HR 2941 IH |
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| 247 | 247 | | (b) EFFECTIVEDATE.—The amendments made by 1 |
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| 248 | 248 | | this section shall apply to property placed in service after 2 |
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| 249 | 249 | | the date of the enactment of this Act. 3 |
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| 250 | 250 | | Æ |
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| 252 | 252 | | mprince on LAP1J3WLY3PROD with $$_JOB |
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