Sen. Susan Collins (R-ME), Sen. Ben Cardin (D-MD), Rep. Mike Kelly (R-PA) and Rep. Earl Blumenauer (D-OR) introduced the Historic Tax Credit Improvement Act (S. 425, H.R. 1158) yesterday. This new legislation would increase the number of historic buildings across the country that can benefit from historic tax credits and thus enable more rehabilitation projects. The following is a statement from Stephanie K. Meeks, president and CEO of the National Trust for Historic Preservation:

“The federal historic tax credit is the driving force behind rehabilitation projects that have given new life to historic buildings, created millions of jobs and attracted billions in private investment. We commend Sens. Collins and Cardin and Reps. Kelly and Blumenauer for their leadership in proposing sound improvements to the federal historic tax credit. Now, more libraries, theaters, town halls and other buildings can be restored to serve their communities in new ways. Tax reform aimed at growing the economy should enhance the historic tax credit.”

BACKGROUND ON THE HISTORIC TAX CREDIT IMPROVEMENT ACT of 2017

The Historic Tax Credit Improvement Act of 2017 makes long overdue changes to the federal Historic Tax Credit to further encourage reuse and redevelopment in small, midsize and rural communities. Main Streets across America will have a stronger tool to help breathe new life into their historic buildings. The bill will increase the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million, which will help inject new private investment into smaller and more rural communities. Other improvements include simplifying the process for the transfer of historic tax credits to investors for projects under $2.5 million. The bill provisions would be the first major changes to the federal Historic Tax Credit since the 1986 tax bill.