Last week, the House Ways and Means Committee passed infrastructure budget reconciliation legislation that includes provisions to expand the federal Historic Tax Credit. Unfortunately, current negotiations with leadership to reduce the cost and scope of the bill means that all historic tax credit provisions are in jeopardy.
Join Preservation Maryland in calling on the Senate to retain preservation provisions in the infrastructure budget reconciliation legislation.
Preservation Maryland is joining with our colleagues from across the country to urge the Senate to support and protect provisions that enhance the federal historic tax credit in the budget reconciliation legislation that is currently moving through Congress. These enhancements to the HTC represent the largest expansion of the HTC in a generation and include investments that will help catalyze economic recovery while also protecting historic and cultural resources.
Despite strong support in the House, the Biden Administration is currently negotiating with House and Senate leadership to reduce the cost and scope of the bill. All historic tax credit provisions are in jeopardy of reduction or elimination. As the debate moves forward, we must reach out to our Senators and urge them to fend off any threats to these provisions.
Add Your Voice: The infrastructure budget reconciliation bill currently includes enhancements and temporary emergency measures for the federal Historic Tax Credit. You can help by adding your voice and contacting your Senators today to encourage them to support these provisions in the reconciliation bill.
HISTORIC TAX CREDIT
The federal historic tax credit (HTC) has been the nation’s most significant investment in historic preservation and has been an essential tool to rehabilitate downtowns and catalyze economic development. Historic rehabilitation incentives have shown time and again in reports their ability to stimulate economic activity and promote job creation.
The provisions currently included in the budget reconciliation legislative text are similar to the House version of the Historic Tax Credit Growth and Opportunity Act (H.R.2294 / HTC-GO) legislation would encourage more building reuse and further incentivize redevelopment in all communities, including smaller and rural Main Street communities. The provisions included in HTC-GO would not only make historic tax credits easier to use and more historic properties eligible for the credit, but they would also enhance the value of these credits for real estate investors.
Also proposed is a temporary increase in the credit percentage for all HTC projects and other provisions designed to keep current rehabilitation projects on track. Past federal disaster recovery legislation included increases to the HTC to help speed economic recovery. For example, the HTC was increased from 20 to 26 percent after Hurricane Katrina in the GO-ZONE Act of 2005 to help rebuild disaster-affected areas. The HTC was similarly increased in the Emergency Economic Stabilization Act of 2008 to address flooding, tornado, and severe weather damage in several mid-Western states. Data shows these temporary increases to the HTC exponentially increase rehabilitation activity, stimulate job creation, and catalyze additional community investment that would not otherwise occur.
SEND A MESSAGE TO YOUR Senators
Infrastructure Budget Reconciliation
The following provisions are included in the budget reconciliation bill that will be moving through Congress:
Rehabilitation Tax Credit
Sec. 135301. Temporarily Increasing the HTC From 20% to 30% for all projects.
Sec. 135302. Permanent increase in the rehabilitation credit for small projects.
Sec. 135303. Modification of substantial rehabilitation definition.
Sec. 135304. Elimination of basis adjustment.
Sec. 135305. Modifications of tax-exempt use leasing rules.
Sec. 135306. Enabling HTC to be used for public school buildings.
Read the full text of the section-by-section breakdown of the infrastructure bill (HTC on Pages 3 and 4)
Preservation Maryland is proud to stand with our national partners in urging Congress to invest in our nation’s future economic health by investing in preservation.
TAKE ACTION
All Marylanders are encouraged to add your voice to urge your Senators to protect preservation provisions in the budget reconciliation bill as it moves forward. Preservation Maryland has prepared a letter that can be customized specifically for constituents to contact their Senators in support of including historic preservation in this legislation.