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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1459 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1459
To amend the Internal Revenue Code of 1986 to improve the historic
rehabilitation tax credit, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 10, 2025
Mr. Cassidy (for himself, Mr. Warner, Ms. Collins, and Ms. Cantwell)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to improve the historic
rehabilitation tax credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Historic Tax Credit Growth and
Opportunity Act of 2025''.
SEC. 2. FULL CREDIT ALLOWED IN THE YEAR BUILDING PLACED IN SERVICE.
(a) In General.--Section 47(a) of the Internal Revenue Code of 1986
is amended to read as follows:
``(a) General Rule.--For purposes of section 46, the rehabilitation
credit for any taxable year is 20 percent of the qualified
rehabilitation expenditures.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2023.
SEC. 3. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL
PROJECTS.
(a) In General.--Section 47 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(e) Special Rule Regarding Certain Small Projects.--
``(1) In general.--In the case of any qualifying small
project with respect to which there is an election in effect
under this subsection--
``(A) the total qualified rehabilitation
expenditures taken into account for purposes of this
section with respect to the rehabilitation shall not
exceed $3,750,000,
``(B) subsection (a) shall be applied by
substituting `30 percent' for `20 percent', and
``(C) subject to paragraph (4) and such regulations
or other guidance as the Secretary may provide, the
taxpayer may transfer all or a portion of the credit
determined under this section with respect to such
qualifying small project.
``(2) Qualifying small project.--For purposes of this
subsection, the term `qualifying small project' means any
qualified rehabilitated building or portion thereof if--
``(A) such building is placed in service after the
date of the enactment of this subsection, and
``(B) no credit was allowed under this section
(other than a credits allowed by reason of subsection
(d)) for either of the two immediately preceding
taxable years with respect to such building.
``(3) Special rule for rural projects.--
``(A) In general.--In the case of any qualifying
small project in a rural area, paragraph (1)(A) shall
be applied by substituting `$5,000,000' for
`$3,750,000'.
``(B) Rural area.--For purposes of this
subparagraph, the term `rural area' means any area
other than--
``(i) a city or town that has a population
of greater than 50,000 inhabitants, or
``(ii) the urbanized area contiguous and
adjacent to a city or town described in clause
(i), as defined by the Bureau of the Census
based on the latest decennial census of the
United States.
``(4) Transfer of credit for qualifying small projects.--
``(A) Certification.--
``(i) In general.--A transfer under
paragraph (1)(C)) shall be accompanied by a
certificate which includes--
``(I) the certification for the
certified historic structure referred
to in subsection (c)(3),
``(II) the taxpayer's name,
address, tax identification number,
date of project completion, and the
amount of credit being transferred,
``(III) the transferee's name,
address, tax identification number, and
the amount of credit being transferred,
and
``(IV) such other information as
may be required by the Secretary.
``(ii) Transferability of certificate.--A
certificate issued under this subsection to a
taxpayer shall be transferable to any other
taxpayer.
``(B) Tax treatment relating to certificate.--
``(i) Disallowance of deduction.--No
deduction shall be allowed for the amount of
consideration paid or incurred by the
transferee.
``(ii) Allowance of credit.--The amount of
credit transferred under paragraph (1)(C)--
``(I) shall not be allowed to the
transferor for any taxable year, and
``(II) shall be allowable to the
transferee as a credit determined under
this section for the taxable year of
the transferee in which such credit is
transferred.
``(iii) Exclusion.--Gross income shall not
include any amount received in connection with
the transfer of the certificate.
``(C) Recapture and other special rules.--The
taxpayer who claims a credit determined under this
section by reason of a transfer of an amount of credit
under paragraph (1)(A) with respect to an applicable
rural project shall be treated as the taxpayer with
respect to such project for purposes of section 50.
``(D) Information reporting.--The transferor and
the transferee shall each make such reports regarding
the transfer of an amount of credit under paragraph
(1)(C) and containing such information as the Secretary
may require. The reports required by this subparagraph
shall be filed at such time and in such manner as may
be required by the Secretary.
``(E) Regulations.--The Secretary shall prescribe
regulations or other guidance to carry out paragraph
(1)(C) and this paragraph in a manner which is
consistent with applicable requirements with respect to
transfer of credits under section 6418.
``(5) Election.--An election under this subsection shall be
made at such time and in such manner as the Secretary may by
regulations prescribe.''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after the date of the enactment of this
Act.
SEC. 4. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR REHABILITATION.
(a) In General.--Section 47(c)(1)(B)(i)(I) of the Internal Revenue
Code of 1986 is amended by inserting ``50 percent of'' before ``the
adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to property placed in service after the date of the enactment of
this Act..
SEC. 5. ELIMINATION OF REHABILITATION CREDIT BASIS ADJUSTMENT.
(a) In General.--Section 50(c) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(6) Exception for rehabilitation credit.--In the case of
the rehabilitation credit, paragraph (1) shall not apply.''.
(b) Treatment in Case of Credit Allowed to Lessee.--Section 50(d)
of such Code is amended by adding at the end the following: ``In the
case of the rehabilitation credit, paragraph (5)(B) of the section
48(d) referred to in paragraph (5) of this subsection shall not
apply.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 6. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.
(a) In General.--Section 47(c)(2)(B)(v) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subclause:
``(III) Disqualified lease rules to
apply only in case of government
entity.--For purposes of subclause (I),
except in the case of a tax-exempt
entity described in section
168(h)(2)(A)(i), the determination of
whether property is tax-exempt use
property shall be made under section
168(h) without regard to whether the
property is leased in a disqualified
lease (as defined in section
168(h)(1)(B)(ii)).''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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