Historic Tax Credit Growth and Opportunity Act of 2025

Key Points

• This bill aims to make it cheaper and easier for people to fix up old, historic buildings. It increases the federal tax credit—which is a dollar-for-dollar reduction in taxes owed—from 20% to 30% for smaller renovation projects.
• Small projects are defined as those costing up to $3.75 million, but the limit goes up to $5 million for projects in rural areas. This is designed to help smaller towns save their historic downtowns and landmarks that might otherwise be torn down.
• The bill makes it easier to qualify for the money. Currently, owners usually have to spend as much money on repairs as the building is worth. This bill would let them qualify if they spend just half of the building's value on renovations.
• For the first time, people doing these small projects would be allowed to sell their tax credits to someone else. This helps developers get the cash they need upfront to pay for construction instead of waiting years to see the tax savings.
• The bill also changes the rules so that owners get the full tax break in the same year the building opens. Previously, this benefit was spread out over five years, which made it harder for projects to stay on budget.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.