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Increased tax credits for historic building rehabilitation in rural areas.

This law increases tax credits for individuals and businesses renovating historic buildings in rural areas. The goal is to encourage investment in older properties outside major cities, potentially leading to community revitalization and the creation of new housing. For affordable housing projects, the credit is highest, supporting the availability of low-cost homes.
Key points
Enhanced Rehabilitation Credit: Instead of the standard credit, rural projects can receive a tax credit of 30% of rehabilitation expenditures.
Support for Affordable Housing: If a rural project is designated as affordable housing (for households earning up to 80% of the median income), the credit increases to 40% of the costs.
Definition of Rural Area: A rural area is defined as any location with a population of 50,000 or less, and areas not adjacent to larger urbanized zones.
Transferability of Credit: Investors can sell or transfer this tax credit to other taxpayers, making project financing easier.
Cost Limit and Penalties: The maximum qualified rehabilitation expenditures eligible for the credit are capped at $5 million. For affordable housing projects, violating the housing requirements results in the full recapture of the credit.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1454
Sponsor: Rep. Carey, Mike [R-OH-15]
Process start date: 2025-02-21
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rural Historic Tax Credit Improvement Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1454.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-02-21.

What are the main provisions?

Key points include:

  • Enhanced Rehabilitation Credit: Instead of the standard credit, rural projects can receive a tax credit of 30% of rehabilitation expenditures.
  • Support for Affordable Housing: If a rural project is designated as affordable housing (for households earning up to 80% of the median income), the credit increases to 40% of the costs.
  • Definition of Rural Area: A rural area is defined as any location with a population of 50,000 or less, and areas not adjacent to larger urbanized zones.
  • Transferability of Credit: Investors can sell or transfer this tax credit to other taxpayers, making project financing easier.
  • Cost Limit and Penalties: The maximum qualified rehabilitation expenditures eligible for the credit are capped at $5 million. For affordable housing projects, violating the housing requirements results in the full recapture of the credit.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Carey, Mike [R-OH-15].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Taxes Real Estate Economy