Increased Tax Credits for Historic Building Renovations
This act increases tax credits for individuals and businesses renovating historic buildings, potentially encouraging more investment in older properties. This could lead to more restored buildings in towns and cities, impacting local aesthetics and property values. The changes aim to make historic preservation more accessible and financially attractive.
Key points
Increased rehabilitation tax credit to 30% for expenditures incurred until the end of 2025, gradually decreasing to 20% after 2027.
Introduction of a special, higher credit (30%) for small rehabilitation projects with costs not exceeding $2.5 million, with an overall expenditure limit of $3.75 million.
Easier qualification for "substantially rehabilitated" status by lowering the expenditure threshold to 50% of the building's value, encouraging smaller but significant renovations.
Elimination of the requirement to reduce the building's basis by the amount of the rehabilitation credit, resulting in greater financial benefits for owners.
Modifications to facilitate the use of the credit for properties leased to tax-exempt entities, potentially opening new avenues for rehabilitation projects.
Expired
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