Congress·In Committee·H.R. 2941

Historic Building Renovations: Tax Credit Expansion

Historic Tax Credit Growth and Opportunity Act of 2025

11 months ago·View on Congress.gov

Legislative Progress

House

Senate

President

Law

Key Points

The bill increases the federal tax credit for smaller renovation projects from 20% to 30%. This higher rate applies to projects costing up to $3.75 million, or up to $5 million if the building is located in a rural area.
It changes the timing of the tax break so owners get the full benefit immediately. Currently, the credit is spread out over five years, but this plan would allow developers to claim the entire amount in the year the building opens.
The plan makes it easier for more buildings to qualify for help. It cuts the 'substantial rehabilitation' requirement in half, meaning owners don't have to spend as much money on construction relative to the building's value to get the credit.
For small projects, the bill allows owners to sell their tax credits to other people or businesses. This helps developers get cash upfront to pay for construction costs rather than waiting until they file their taxes.
The bill removes a rule that currently forces owners to lower the value of their property on paper when they take the credit. By removing this rule, owners can save more money on their taxes over time through standard building depreciation.
It relaxes rules for non-profit organizations, making it easier for groups like community centers or local charities to partner with developers to save historic buildings in their neighborhoods.

Milestones

2 milestones2 actions

Apr 17, 2025House

Referred to the House Committee on Ways and Means.

Apr 17, 2025

Introduced in House

Related Bills

2 bills

H.R. 6900Related bill

American Affordability Act of 2025

Dec 18 — Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

S. 1459Identical bill

Historic Tax Credit Growth and Opportunity Act of 2025

Apr 10 — Read twice and referred to the Committee on Finance.