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Earlier this month, the Historic Tax Credit Growth and Opportunity Act (HTC-GO) was introduced in the Senate (S. 1459) by Senators Bill Cassidy (R-LA) and Mark Warner (D-VA), and in the House (H.R. 2941) by Representatives Darin LaHood (R-IL) and Tom Suozzi (D-NY).

The bill includes targeted improvements to make the credit more accessible and effective, including a return to a one-year credit structure, eliminating the basis reduction requirement which will support affordable housing projects, and several provisions that support smaller projects and projects located in rural areas.

These updates are designed to build on the HTC’s long-standing success in revitalizing communities, creating jobs, and encouraging private investment in the reuse of historic buildings.

HTC-GO represents a major opportunity to ensure that this proven community development tool is better positioned to meet the needs of both urban and rural areas.

Despite strong bipartisan support for HTC-GO, however, improvements to the incentive were not included in the House Ways and Means Committee’s tax reconciliation package, which passed out of the committee earlier this month.

The Committee bill focuses primarily on extending provisions of the 2017 Tax Cuts and Jobs Act and advancing the Administration’s top tax priorities.

As a result of the tight spending constraints of the House Reconciliation bill, few opportunities exist to incorporate substantive provisions for community development incentives, including the historic tax credit.

This makes HTC advocacy in the Senate critically needed. The Senate Finance Committee is currently drafting its version of the reconciliation tax bill.

Advocates must take action now to make the most of this opportunity by urging Senators to support including improvements to the HTC in the Senate package.

This is the moment advocates have been waiting for to improve the HTC.

We encourage all historic tax credit supporters to contact their Senators – especially Republican members of the Senate Finance Committee – and urge them to support HTC-GO and include it in the final reconciliation bill.

With Congress set to deliberate on the size and scope of a significant tax package over the next several weeks, your advocacy is again needed to send a powerful message to Congress that the time to improve the historic tax credit is now!

House and Senate champions recently introduced the bipartisan Historic Tax Credit Growth and Opportunity Act (HTC-GO; H.R.2941/S.1459).

The new bill brings more value to the HTC, makes the credit easier to use, and encourages rehabilitation of smaller projects and projects in rural areas.

The Historic Tax Credit has turned bygone schools, factories, and hotels into thriving places that boost local economies and preserve our past. And with improvements, the HTC will help produce even more housing options for all income levels.

As we speak, Congress is preparing to mark up and vote on a large tax bill. Rehabilitation and reuse advocates have a rare opportunity to make changes to the historic tax credit incentive and make it work even better for our communities. But Congress needs to hear from you!

A simple email from you can help modernize and improve the Historic Tax Credit. It’s quick. It matters. And it works.

Reach out to your members of Congress now, urge them to support the Historic Tax Growth and Opportunity Act of 2025 (H.R.2941/S.1459), and request the inclusion of HTC-GO bill provisions in the emerging tax bill.

With a number of tax provisions expiring at the end of 2025, Congress and the White House are highly motivated to pass a significant tax bill tax during the current legislative session.

Historic tax credits have successfully converted historic schools, factories, warehouses, hotels, and 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.

But we need your help.

Grassroots advocacy makes a difference. With consistent outreach to Congressional decisionmakers, the preservation community will be well-positioned to take advantage of legislative opportunities to substantially improve and modernize the federal historic tax credit.

Reach out to your members of Congress now to urge them to protect and enhance the HTC in any forthcoming tax reform legislation.

Learn more about the Revolution Mill project featured in the photo above. The National Trust Community Investment Corporation (NTCIC), a for-profit subsidiary of the National Trust, provided tax credit financing needed for the Mill House rehabilitation, completed in May 2023.

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.

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.