Historic Tax Credit Growth and Opportunity Act of 2025
Sponsored By: Senator Bill Cassidy
Introduced
Summary
Boosts the historic rehabilitation tax credit. This bill would increase credit rates, expand which building costs count toward the credit, and let some projects transfer credits to outside buyers.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
20% general rehab credit
If enacted, the bill would set the historic rehabilitation credit at 20% of qualified rehab expenditures for property placed in service after December 31, 2023. That means you would multiply qualifying rehab costs by 20% to compute the credit for those properties. This change applies for purposes of section 46.
No basis cut when claiming credit
If enacted, taxpayers who claim the rehabilitation credit for property placed in service after enactment would not have the usual basis-reduction rule apply. That means your building's tax basis would not be lowered because you took the rehab credit. This could keep future depreciation and gain calculations more favorable.
30% credit for small projects
If enacted, owners of qualifying small historic rehab projects could elect a 30% tax credit on rehab costs. The credit would be limited to QREs of $3,750,000, or $5,000,000 for projects in defined rural areas. The bill would let owners transfer all or part of these credits to other taxpayers. Money received from a credit transfer would not be taxable, but both buyer and seller would have to report the transfer. The transferee generally could claim the credit the year of transfer and would face usual recapture rules for rural projects.
50% of adjusted basis counts
If enacted, the bill would change how the building portion is measured for the rehab credit by using 50% of the building's adjusted basis. This applies to property placed in service after enactment. The change can increase the part of a building's basis that counts when figuring the credit.
Lease rule narrowed for tax-exempt use
If enacted, the bill would change how tax-exempt use property is treated. Except for certain tax-exempt entities, disqualified-lease rules would apply only to government lessees. For other entities, whether property is leased under a "disqualified lease" would be ignored for the rehab credit. This applies to property placed in service after enactment.
Sponsors & CoSponsors
Sponsor
Bill Cassidy
LA • R
Cosponsors
Mark Warner
VA • D
Sponsored 4/10/2025
Susan Collins
ME • R
Sponsored 4/10/2025
Maria Cantwell
WA • D
Sponsored 4/10/2025
Amy Klobuchar
MN • D
Sponsored 5/6/2025
Cindy Hyde-Smith
MS • R
Sponsored 5/8/2025
Tina Smith
MN • D
Sponsored 6/2/2025
Jim Banks
IN • R
Sponsored 6/2/2025
Todd Young
IN • R
Sponsored 2/24/2026
Roll Call Votes
No roll call votes available for this bill.
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