WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) re-introduced the Historic Tax Credit Growth & Opportunity (HTC-GO) Act to foster economic growth and local renewal by expanding the Historic Tax Credit.
“Our architectural heritage is a point of Louisiana pride that draws folks to visit our state and supports our economy. If we want to preserve it, we need the tools to do so. The Historic Tax Credit gives us those tools,” said Dr. Cassidy.
The HTC-GO Act:
- Creates a new 30 percent transferable credit for small and rural projects while returning the base credit to be payable in the same year the revitalized property is placed into service. The bill lowers the threshold the cost of a project must meet to be eligible by eliminating the basis-adjustment requirement, which will bring the HTC in line with other credits such as the Low-Income Housing Tax Credit.
- Further expands eligible renovation projects by decreasing the rehabilitation investment threshold from 100 percent to 50 percent of the project’s expenses. Project expenses would only have to exceed half of the project’s cost to qualify for the credit. It also amends rules for tax-exempt entities – such as health care centers, arts organizations, community services, and workforce training providers – to allow better access to the credit.
The bill is endorsed by the National Trust for Historic Preservation.
“The federal historic tax credit is one of our most powerful tools for historic preservation, economic development, and community revitalization,” said Carol Quillen, President and CEO of the National Trust for Historic Preservation. “The leadership of Senators Cassidy and Warner, with the strong support of long-time champions Senators Collins and Cantwell and Representatives LaHood and Souzzi, attests to the role the historic tax credit plays in reenergizing communities across the country. With the reintroduction of the Historic Tax Credit Growth and Opportunity Act, we take a crucial step towards empowering Americans in every state to invest in older and historic buildings, neighborhoods and commercial districts. These investments support small businesses, create housing, and generate economic opportunity as they build community connection and engagement. This time-tested community-serving incentive demonstrates how preservation efforts serve the public good. We’re grateful to our Congressional champions for their steadfast support of the federal historic tax credit and look forward to supporting this effort in upcoming tax discussions.”
Cassidy was joined by U.S. Senators Mark Warner (D-VA), Susan Collins (R-ME), and Maria Cantwell (D-WA) in introducing the bill.
Background
Elimination of the basis adjustment and a return to a one-year credit will increase the value of the credit and simplify transaction structures. Under current tax law, a building owner must subtract the amount of credits received from a building’s basis (the amount a property is worth for tax purposes) and receive the credit over 5 years. Eliminating this requirement will bring more value to all HTC projects by increasing the basis of rehabilitated historic buildings for building owners, providing additional depreciation and other tax benefits, and attracting more capital from tax credit investors.
###