Historic Tax Credit Growth and Opportunity Act of 2025
Sponsored By: Representative LaHood
Introduced
Summary
Expand and boost the historic rehabilitation tax credit to drive more private investment in rehabilitating older buildings. The bill would raise the credit for qualifying small projects to 30 percent, allow taxpayers to transfer credits for certain projects, broaden what counts toward the credit, and remove the standard basis reduction that usually follows a rehabilitation credit.
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- Small developers: Would let qualifying small projects elect a 30 percent credit on qualified rehabilitation expenditures up to $3.8 million. Projects in rural areas would instead get a $5.0 million cap.
- Owners and lessees: Would remove the rehabilitation-credit basis adjustment so owners do not have the usual basis reduction, and would change tax-exempt use rules so disqualified-lease tests apply only to government entities.
- Investors and credit buyers: Would permit transfer of credits for qualifying small projects using a certificate, exclude amounts received from gross income, disallow a deduction for payments made for the credit, and keep the transferor subject to recapture rules.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bigger credit for small historic rehabs
If enacted, qualifying small projects could get a 30% tax credit on rehab costs. The credit would count up to $3,750,000 in costs, or $5,000,000 in rural areas. You could transfer the credit to another taxpayer if you use a transfer certificate and follow IRS reporting rules. To qualify, you would need to make an election, place the building in service after enactment, and no credit could have been allowed for that building in the prior two tax years. These rules would apply to property placed in service after the law takes effect.
Easier 20% credit for historic rehabs
If enacted, the main historic rehab credit would be 20% of qualified rehab costs and allowed in full when the building is placed in service. This 20% rule would apply to property placed in service after December 31, 2023. The bill would also lower the test to qualify: your rehab costs would need to be at least 50% of the building’s adjusted basis. That 50% test would apply to property placed in service after enactment.
Easier leasing and no basis cut for historic rehabs
If enacted, leased projects would be less likely to be treated as tax‑exempt use just because of a disqualified lease, except for certain tax‑exempt entities. The usual rule that reduces a building’s tax basis after you claim the credit would not apply, including when a lessee claims the credit. Both changes would apply to property placed in service after enactment.
Sponsors & CoSponsors
Sponsor
LaHood
IL • R
Cosponsors
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 8/8/2025
Rep. Pou, Nellie [D-NJ-9]
NJ • D
Sponsored 9/3/2025
Rep. Gillen, Laura [D-NY-4]
NY • D
Sponsored 10/10/2025
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 4/17/2025
Bishop
GA • D
Sponsored 4/28/2025
Rep. Boyle, Brendan F. [D-PA-2]
PA • D
Sponsored 4/29/2025
Schrier
WA • D
Sponsored 5/5/2025
Budzinski
IL • D
Sponsored 5/5/2025
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 5/6/2025
Rep. Yakym, Rudy [R-IN-2]
IN • R
Sponsored 5/13/2025
Rep. Cleaver, Emanuel [D-MO-5]
MO • D
Sponsored 5/13/2025
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 5/19/2025
Rep. Matsui, Doris O. [D-CA-7]
CA • D
Sponsored 5/20/2025
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 5/29/2025
Rep. Harder, Josh [D-CA-9]
CA • D
Sponsored 5/29/2025
Craig
MN • D
Sponsored 6/3/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 6/4/2025
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 6/4/2025
Mrvan
IN • D
Sponsored 6/4/2025
Riley (NY)
NY • D
Sponsored 6/4/2025
Rep. Strickland, Marilyn [D-WA-10]
WA • D
Sponsored 6/4/2025
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 6/4/2025
Rep. McClain Delaney, April [D-MD-6]
MD • D
Sponsored 6/4/2025
Rep. Stanton, Greg [D-AZ-4]
AZ • D
Sponsored 7/10/2025
Kustoff
TN • R
Sponsored 7/16/2025
Turner (OH)
OH • R
Sponsored 11/17/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 11/17/2025
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 12/3/2025
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 12/10/2025
Rep. Sorensen, Eric [D-IL-17]
IL • D
Sponsored 12/16/2025
Wittman
VA • R
Sponsored 2/26/2026
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 3/17/2026
McGuire
VA • R
Sponsored 3/17/2026
Rep. Landsman, Greg [D-OH-1]
OH • D
Sponsored 3/17/2026
Rep. Doggett, Lloyd [D-TX-37]
TX • D
Sponsored 3/17/2026
Rep. Ross, Deborah K. [D-NC-2]
NC • D
Sponsored 3/17/2026
McCollum
MN • D
Sponsored 3/17/2026
Fitzgerald
WI • R
Sponsored 3/19/2026
Mannion
NY • D
Sponsored 3/26/2026
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 3/26/2026
Rep. Moran, Nathaniel [R-TX-1]
TX • R
Sponsored 3/26/2026
Kennedy (NY)
NY • D
Sponsored 4/9/2026
Rep. Latimer, George [D-NY-16]
NY • D
Sponsored 4/29/2026
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 5/14/2026
Roll Call Votes
No roll call votes available for this bill.
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