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Governor Landry has called for a special legislative session to start November 6, setting the stage for a critical showdown on Louisiana’s historic tax credits.

One of these draft bills would eliminate all state tax credit programs in Louisiana, including the historic rehabilitation tax credit, as of December 31, 2024. If passed, Louisiana would lose a critical tool for creating new housing, attracting tourists, generating jobs, and revitalizing neighborhoods.

Your voice is critical right now. If you live or work in Louisiana, please contact your Louisiana state representatives to express the importance of preserving these credits.

Let them know how the Louisiana Historic Tax Credit is helping revitalize your community. Every letter counts in the fight to protect Louisiana's history and future.

The Senate Finance Committee held a hearing in late July titled, "Tax Tools for Local Economic Development" to explore the effectiveness of key tax incentives in revitalizing communities.

A central part of the discussion was the Historic Tax Credit (HTC), a longstanding federal incentive that has been instrumental in preserving historically significant properties while fostering economic growth, creating jobs, and increasing investments in local communities.

Senators responded positively to the notion that the HTC contributes significantly to local economic development and should be modernized to enhance its performance.

Bipartisan efforts to modernize and strengthen the HTC are underway in the Senate. Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Susan Collins (R-ME), and Maria Cantwell (D-WA) are leading legislation to enhance the HTC.

The Historic Tax Credit Growth and Opportunity Act (HTC-GO)(S.639 / H.R.1785) aims to modernize the credit by making it easier for smaller projects to access the credit, reducing basis adjustment requirements so the credit will twin more easily with other community development credits, and easing the "substantial rehabilitation" threshold so more buildings will qualify for the credit.

Michael Novogradac, managing partner of Novogradac & Company LLP, provided expert testimony, highlighting the HTC's impact since its inception.

The HTC has supported the rehabilitation of over 49,000 properties across the U.S., leading to nearly $132 billion in private investment.

The HTC has succeeded in creating more than 3.2 million jobs and has generated significant federal tax revenue.

The credit has rehabilitated and created hundreds of thousands of homes, including over 314,000 rental homes and nearly 200,000 units affordable to low- and moderate-income households.

Mr. Novogradac also noted that in economically distressed areas, where private capital is harder to secure, the HTC has been a lifeline, attracting much-needed private investment to communities in need.

Despite its strong record of success, voicing support for the HTC ahead of the 2025 tax debate is critical. Urge your representatives in Congress to support legislation that will improve the HTC and ensure it will remain both an attractive and effective revitalization tool for your community.

Let your members of Congress know that you support HTC-GO.

Missouri and Pennsylvania both recently passed legislation to increase and improve their State Historic Tax Credits (HTC).

The recent increase in Pennsylvania's state historic tax credit marks a significant victory for historic preservation efforts across the state as a result of a dedicated and diligent statewide coalition.

State Representative Steve Samuelson (D-Lehigh County) championed the effort in the House, proposing to raise the tax credit from $5 million to $20 million.

This proposal gained rapid approval, navigated the budget negotiations, and culminated in Governor Josh Shapiro's signature last Thursday. Legislators highlighted the dual benefits of historic preservation: celebrating Pennsylvania's rich history and driving economic growth by converting historic structures into income-producing properties. The data supports this, showing that every $1 million invested in historic rehabilitation projects creates over 12 jobs, both directly and indirectly. This increase propels Pennsylvania out of its previous last-place ranking in the region and sets the stage for future enhancements to the historic tax credit program.

In Missouri, State Senator Steven Roberts (D-St. Louis) sponsored the Historic, Rural Revitalization and Regulatory Streaming Act, which was later amended into House Bill 2062 and signed into law by the governor on July 9. The new bill increases the HTC in counties outside of St. Louis and Kansas City from 25% to 35% of the total costs of rehabilitation.

On June 12, the Government Relations team took part in an in-person advocacy day for the Historic Tax Credit, hosted by the Historic Tax Credit Coalition (HTCC) and the National Trust Community Investment Corporation (NTCIC).

Alongside several dozen HTC stakeholders from across the country, advocates met with more than 60 Congressional offices in both the House and Senate, stressing the importance of historic preservation for all Americans and the need to modernize the historic tax credit as more and more buildings reach the 50-year threshold.

As a result, new cosponsors were added to the Historic Tax Credit Growth and Opportunities Act (HTC-GO) (S. 639/ H.R. 1785) and several representatives in the House expressed interest in joining the Historic Preservation Caucus.

HTC-GO is a bipartisan bill sponsored in the House by Representatives Darin LaHood (R-IL), Earl Blumenauer (D-OR), Mike Kelly (R-PA), Terri Sewell (D-AL), Mike Turner (R-OH), and Brian Higgins (D-NY) and in the Senate by Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA), and Susan Collins (R-ME).

The House and Senate bills include several provisions that will add value to the Historic Tax Credit and strengthen the incentive to make more historic rehabilitation projects possible.

Among other provisions, the bill increases the HTC percentage from 20%-30% for smaller projects and lowers the substantial rehabilitation threshold, which will allow more buildings to access the HTC.

The tax credit has not been positively changed since 1986, and your support is needed.

Please take the time to reach out to your Representatives and Senators and ask them to support this bill.

A bipartisan and bicameral group of lawmakers have been steadfastly working on bipartisan tax legislation under the leadership of House Ways and Means Committee Chair Jason Smith (R-MO) and Ranking Member Ron Wyden (D-OR) of the Senate Finance Committee, who have been facilitating discussions and negotiations to address critical tax policy issues with a primary focus on advancing the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024).

The House Ways and Means Committee passed the bill 40-3, clearing the way for it to pass the full House with strong bipartisan support in a 357-70 vote. The fate of the bill in the Senate, however, remains uncertain, which has prompted discussions about what changes may be needed to secure passage.

In the meantime, as Congress looks ahead to a slate of expiring tax provisions in 2025, the House Ways and Means Committee has established working groups dedicated to examining specific tax policy areas including child tax credits, business tax provisions, and affordable housing to facilitate bipartisan collaboration and comprehensive analysis.

The National Trust will submit comments to relevant working groups in support of improvements to the federal historic tax credit and other policies that support historic preservation outcomes considered by the Committee.

Statement of the National Trust for Historic Preservation for the Committee on Ways and Means, U.S. House of Representatives, Hearing on “Expanding on the Success of the 2017 Trump Tax Cuts," April 12, 2024

Early efforts by the Ways & Means Committee to highlight the legislative work needed in 2025, underscore the complexities of and opportunities for advancing bipartisan tax legislation in a divided Congress. This dynamic is setting the stage for major tax policy discussions that are anticipated in the 119th Congress.