House Infrastructure Bill Includes Provisions to Expand and Enhance the Historic Tax Credit
This week House Democrats unveiled the Moving Forward Act, a $1.5 trillion infrastructure bill. Among funding for infrastructure priorities, the legislation also incorporates several community development provisions aimed at stimulating the economy, including provisions to expand and enhance the Historic Tax Credit program. This legislation includes to following measures that help to strengthen the Historic Tax Credit.
A temporary increase of the Historic Tax Credit from 20% to 30% for 5 years.
Establishes a permanent 30% Historic Tax Credit for projects $2.5 million and less
Eliminates the HTC Basis Adjustment, bringing more value to HTCs
Reduces the Historic Rehab Test to 50% of a building's basis instead of 100%
Makes the credit easier to use by non-profits
A provision for communities to rehabilitate existing public schools using the HTC
Temporary extension of period for completing rehabilitation
Several of these provisions were included as part of the Historic Tax Credit Growth and Opportunity Act (S.2615/H.R. 2825) and we're part of the request that Preservation Action and many of our partners made to Congress urging them to support historic preservation as lawmakers look for ways to stimulate the economy. In addition to the provisions to strengthen the Historic Tax Credit, the bill also creates a new tax credit for the rehabilitation of dilapidated single-family homes. The House is expected to pass the Moving Forward Act as soon as next week. While the bill's future in the Senate is uncertain, inclusion of HTC provisions is great news for preservation advocates and sets up these priorities well for the future infrastructure or relief legislation.
Take Action
Congress needs to hear from you. Urge your members of Congress to support the enhancements to the Historic Tax Credit included in the Moving Forward Act. Join us in thanking your Representative for including measures to strengthen the HTC in the moving Forward Act, and urge your Senators to include these HTC provisions as part of future infrastructure or relief legislation. If you have a personal contact in your Representative or Senator's Washington D.C or District office, contact that person directly. Forward your member of Congress the Historic Tax Credit Economic Stimulus Request Talking Points.
Legislation in Georgia Threatens to Eliminate the State's Historic Tax Credit Program
As states across the country are struggling to balance their budgets during the current economic downturn, some have started to target tax breaks and incentives. The Georgia Senate is currently debating
House Bill 1035 which would eliminate the state's Historic Tax Credit program. Georgia has a 25% tax credit for the rehabilitation of incoming producing historic properties and personal residences. The program is capped at $25 million annually. Georgia's Historic Tax Credit program has helped to revitalize downtowns and neighborhoods across the state. Studies have shown that the program creates $3.49 for $1 in tax credits issued by the state.
This harmful legislation would also reduce the state's match to the federal Low-Income Housing Tax Credit by 50%. The
Georgia Trust for Historic Preservation and the
Historic Savannah Foundation are asking Georgians should reach out to your state Senators and urge them
to advocate to keep the State's matching portion of the Low-Income Housing Tax Credit fully funded as well as maintain the Historic Tax Credit program. Check out the Advocacy Alert from the Georgia Trust for Historic Preservation to learn more and find out how you can take action.
Legislative Action Threatens Louisiana's Historic Tax Credit Program
The Louisiana legislature is currently considering changes to the state's historic tax credit program that would place an annual cap on the program. Louisiana currently has a 20% state tax credit on the rehabilitation of historic properties. The program is set to expire at the end of 2021, House legislators approved legislation that would extend the program through 2028. While considering this bill the state Senate offered amendments that would
severely limit the economic development brought by this program.
Since 2002, the tax credit has led to the rehabilitation of 1,322 buildings across Louisiana, triggering more than $4 billion in private investment in the state's historic downtowns and cultural districts. Half of all projects receiving the credit were smaller than $500,000 in total costs, demonstrating that the credit is fundamentally a small business incentive.
The
Preservation Resource Center of New Orleans is urging you to contact your Louisiana legislators and urge them to save the state's historic tax credit program. Check out the
alert below to learn more and find out how you can take action!
Preservation Action is the only national
non-profit dedicated exclusively to lobbying for the best preservation policies at the federal level. We seek to make historic preservation a national priority by advocating to all branches of government through a grassroots constituency empowered with information and training.
This week House Democrats unveiled the 
