Rural Historic Tax Credit Improvement Act
Summary
What This Bill Does
The Rural Historic Tax Credit Improvement Act increases the rehabilitation credit for qualified rehabilitated buildings in rural areas. Applicable rural projects receive a 40 percent credit for affordable housing projects and a 30 percent credit for other rural projects, instead of the ordinary rehabilitation credit. It also provides special treatment so the usual basis reduction rules do not apply to the rehabilitation credit for applicable rural projects. The amendments apply to property placed in service after December 31, 2025. The bill makes rural historic rehabilitation more financially attractive, especially when paired with affordable housing.
Who Benefits and How
Rural historic building owners benefit because qualified rehabilitation expenditures receive a larger credit. Affordable housing developers benefit from a 40 percent rural rehabilitation credit for eligible projects. Rural downtown communities benefit if stronger credits make historic building reuse financially feasible. Historic preservation contractors benefit from more rehabilitation projects in rural areas.
Who Bears the Burden and How
Federal taxpayers bear the revenue cost of enhanced rural rehabilitation credits. The Internal Revenue Service must administer rural project eligibility, higher credit rates, and basis exceptions. Project sponsors must document qualified rehabilitation expenditures and rural-area status. Budget writers must account for increased tax expenditures after 2025.
Key Provisions
- Amends section 47 to create enhanced rehabilitation credits for applicable rural projects.
- Provides a 40 percent credit for rural affordable housing rehabilitation projects.
- Provides a 30 percent credit for other rural rehabilitation projects.
- Removes certain basis adjustment rules for rural rehabilitation credits after 2025.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Enhances the rehabilitation tax credit for rural historic projects to 40 percent for affordable housing projects and 30 percent for other rural projects, with special basis-adjustment treatment for property placed in service after 2025.
Key Policy Areas
Tax, Historic Preservation, Rural Development
Primary Purpose
Enhances the rehabilitation tax credit for rural historic projects to 40 percent for affordable housing projects and 30 percent for other rural projects, with special basis-adjustment treatment for property placed in service after 2025.
Policy Domains
Resolution provisions
Identified Gains
- Rural historic building owners
- Affordable housing developers
- Rural downtown communities
- Historic preservation contractors
Identified Costs
- Federal taxpayers
- Internal Revenue Service
- Project sponsors
- Budget writers
Sponsors
Legislative Progress
In CommitteeMr. Carey (for himself and Mr. Horsford) introduced the following …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Affordable housing developers, Rural historic building owners
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology