Historic Tax Credit Growth and Opportunity Act of 2023

Historic Tax Credit Growth and Opportunity Act of 2023

This bill increases the rehabilitation tax credit and modifies certain requirements for the credit.

The bill increases the rate of the credit for qualified rehabilitation expenditures in taxable years beginning after December 31, 2020, and before January 1, 2028, after which the rate reverts to 20%.

The bill increases the rate of the credit to 30% for certain small projects whose qualified rehabilitation expenditures do not exceed $2.5 million.

The bill also expands the types of buildings eligible for rehabilitation by decreasing the rehabilitation threshold from 100% to 50% of project expenses. It also eliminates the basis adjustment requirement for the credit and modifies rules relating to tax-exempt use property eligible for the credit.

Bill 118 HR 1785, also known as the Historic Tax Credit Growth and Opportunity Act of 2023, aims to expand and enhance the Historic Tax Credit (HTC) program. The HTC program provides tax incentives for the rehabilitation and preservation of historic buildings, encouraging investment in historic properties and revitalizing communities.

The bill proposes several key provisions to strengthen the HTC program. It increases the credit rate for certain projects, making it more financially attractive for developers to undertake historic rehabilitation projects. Additionally, the bill extends the credit to include certain smaller projects that were previously ineligible, broadening the scope of the program.

Furthermore, the bill includes measures to streamline the application process for the HTC program, making it easier for developers to access the tax credits. This is intended to encourage more investment in historic properties and spur economic growth in communities across the country. Overall, the Historic Tax Credit Growth and Opportunity Act of 2023 seeks to promote the preservation of historic buildings, stimulate economic development, and create job opportunities in the construction and preservation industries. It is a bipartisan effort to support the revitalization of historic properties and promote the cultural heritage of the United States.