To spur economic growth and urban renewal, U.S. Sens. Bill Cassidy (R-LA) and Susan Collins (R-ME) on March 2 signed on as original cosponsors of a bipartisan bill that would improve the historic rehabilitation tax credit.
“The Historic Tax Credit has restored many cherished buildings in Louisiana creating jobs and revitalizing communities,” Sen. Cassidy said. “This bill will help people across our state and nation return historic buildings to working use and preserve our architectural heritage.”
The Historic Tax Credit Growth & Opportunity (HTC-GO) Act, S. 639, which is sponsored by U.S. Sen. Ben Cardin (D-MD), would create a new 30 percent credit for projects that cost less than $3.75 million while maintaining the existing 20 percent credit. Credits are capped at $750,000, according to a bill summary provided by the senators.
“I have long supported the Historic Tax Credit, a proven tool for revitalizing communities and catalyzing economic development in Maine and across the nation,” said Sen. Collins. “This bipartisan legislation will make the historic tax credit even easier to use, leveraging greater investments in restoration projects and creating good-paying jobs for hard-working Americans.”
If enacted, S. 639 also would lower the threshold for the cost a project must meet to be eligible by eliminating the basis-adjustment requirement, which would bring the HTC in line with other credits, the summary says.
“The Historic Tax Credit is a vital economic and preservation tool, creating jobs and saving history in small and rural Maryland communities, and across America,” said Sen. Cardin. “Maryland is home to hundreds of projects supported by this incentive, directly driving growth and revitalizing neighborhoods.”
Among other provisions, S. 639 also would further expand eligible renovation projects by decreasing the rehabilitation investment threshold from 100 percent to 50 percent of the project’s expenses, which would only have to exceed half of the project’s cost to qualify for the credit, states the summary.
The measure has been referred for consideration to the U.S. Senate Finance Committee.