Historic Tax Credit Growth and Opportunity Act of 2023

Hozzl · 2024-01-23T08:15:19Z

Explore the details of House Bill 1785 Historic Tax Credit Growth and Opportunity Act of 2023 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

1/23/2024, 8:15 AM

Summary of Bill HR 1785

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.

Congressional Summary of HR 1785

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.

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Current Status of Bill HR 1785

Bill HR 1785 is currently in the status of Bill Introduced since March 24, 2023. Bill HR 1785 was introduced during Congress 118 and was introduced to the House on March 24, 2023. Bill HR 1785's most recent activity was Referred to the House Committee on Ways and Means. as of March 24, 2023

Bipartisan Support of Bill HR 1785

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

102

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 1785

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 1785

Historic Tax Credit Growth and Opportunity Act of 2023

To amend the Internal Revenue Code of 1986 to modify the rehabilitation credit for certain small projects, to eliminate the requirement that the taxpayer's basis in a building be reduced by the amount of the rehabilitation credit determined with respect to such building, and for other purposes.