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Legislation has been reintroduced in the House and Senate that would make long-overdue changes to the country's Historic Tax Credit (HTC).

As you know, historic tax credits have successfully converted yesterday’s schools, factories, warehouses, hotels, and so many other distinctive places into modern hubs that fuel local economies, create jobs, and preserve our heritage. We now have a chance to make this program even more effective.

Members of Congress have just introduced legislation that will enhance the value of the federal HTC. Both Senate and House bills include provisions to improve access to the credit and increase investment in smaller rehabilitation projects.

Last Congress, HTC-GO attracted a record-setting 104 cosponsors in the House and 15 members in the Senate. The significant base of support that was established in the 117th Congress puts HTC advocacy in a strong position in this Congress.

Public advocacy by supporters like you can make a difference. With sustained advocacy, the preservation community will be well-positioned to take advantage of a very rare opportunity to substantially improve and modernize the federal historic tax credit.

Urge Your Members of Congress to Support Improvements to the Historic Tax Credit!

On March 2, Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA), and Susan Collins (R-ME) introduced the Historic Tax Credit Growth and Opportunity Act (HTC-GO) (S. 639).

The bill includes four permanent provisions that will add value to the federal historic tax credit (HTC) program, improve access to the credit, and increase investment in smaller rehabilitation projects.

Similar legislation was introduced in the House (H.R. 1785) by Representatives Earl Blumenauer (D-OR), Brian Higgins (D-NY), Mike Kelly (R-PA), Darin LaHood (R-IL), Terri Sewell (D-AL), and Mike Turner (R-OH) on March 24.

The House bill also includes a temporary tax provision to address recent challenges facing rehabilitation projects.

The HTC has lost investment value over the past ten years due to multiple complex factors, including new IRS rulings, administrative burdens, changes in the credit structure, along with the changes of the Tax Cuts and Jobs Act of 2017. The result is that the value of the tax credit investment has dropped 20-25%.

These issues, combined with rising interest rates and skyrocketing costs of materials and labor, have exacerbated financing challenges already present with these projects. Current National Park Service data shows that usage of the HTC is down 20%, for both FY22 and FY21, compared to 4 years ago.

Last Congress, HTC-GO attracted a record-setting 104 cosponsors in the House and 15 in the Senate. The National Trust is hopeful that with the significant base of support established in the 117th Congress, HTC legislation is in a strong position to advance.

Ask your members of Congress to support the HTC-GO legislation to strengthen the HTC program.

The Historic Tax Credit (HTC) is a proven tax incentive for revitalizing historic community assets and supporting economic development and recovery.

On March 2, 2023, Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA), and Susan Collins (R-ME) introduced the Historic Tax Credit Growth and Opportunity Act (S. 639). Similar legislation was introduced in the House by Representatives Earl Blumenauer (D-OR), Brian Higgins (D-NY), Mike Kelly (R-PA), and Darin LaHood (R-IL), Terri Sewell (D-AL), and Mike Turner (R-OH). Both bills include provisions to permanently add value to HTC, improve access to the credit, and increase investment in smaller rehabilitation projects.

With more than 70 percent of states adopting some form of historic tax credit incentive to support building reuse, the utility and success of this preservation policy are clear.

As states look to strengthen and tailor these incentives, the National Trust is pleased to offer a Resource Guide that offers an overview of the tangible benefits of historic tax credit programs, the elements of top-performing credits, and a state-by-state comparative analysis of key features.

Web-based Mapping Tool:

The State Historic Tax Credit Data Center tool is intended to serve historic preservation policymakers, advocates, and practitioners alike as they determine the optimal incentive for their state.

The tool allows them to compare up to three state programs at one time as well as a way to compare specific features of a state’s historic tax credit against all other programs.

The National Trust for Historic Preservation gratefully acknowledges the generous support of David and Julia Uihlein, who made the development of the Resource Guide and interactive mapping tool possible.

With the changes in Congress and in the White House, Historic Tax Credit (HTC) advocates are preparing to ramp up advocacy efforts upon the introduction of a new HTC bill in the 117th Congress. Advocates expect the bill to provide temporary COVID-19 relief to HTC projects distressed by the pandemic and permanent enhancements to the HTC. In 2021, there will be multiple “must-pass” legislative vehicles, along with unresolved issues related to COVID-19 relief, that may contain robust tax titles. This will provide opportunities to enact some or all the HTC enhancement provisions outlined in the new legislation. Provisions the National Trust hopes will be incorporated include a temporary increase to the HTC from 20% to 30% for COVID-19 relief and permanent enhancements to the HTC to unlock new projects that presently are not feasible, bring more value to the HTC, and contribute to the economic recovery. These provisions were included in H.R. 2, the “Moving Forward Act,” which passed the House of Representatives in the 116th Congress.

As a result of the pandemic, HTC developers and preservationists continue to experience challenges in rehabbing historic buildings with the freezing of the financial markets, difficulties accessing capital, and banking institutions loaning less to these projects, which tend to carry more risk. In addition to increases in material costs and construction costs on-site, projects are currently facing financing gaps, and many projects are stalled or no longer feasible. Also, with COVID-19 impacting local budgets, local governments are challenged to fulfill funding and partnership agreements with developers and enter into new agreements that incentivize the revitalization of their community.

Advocates should encourage developers who have HTC projects that have faced challenges to share these challenges with their federal legislators and ask them to cosponsor the new legislation upon introduction.