Senate Finance Committee Hearing Highlights Bipartisan Support for Expanding the Historic Tax Credit
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.