A bipartisan group of four senators today introduced the Historic Tax Credit Growth and Opportunity (HTC-GO) Act of 2023. The legislation would create a 30% HTC for projects that cost less than $3.75 million, while retaining the 20% credit for other projects. The bill eliminates the basis-adjustment requirement, which increases eligibility and brings parity with other tax credit incentive, and decreases the substantial rehabilitation test threshold to 50% from 100% of expenses. The bill is sponsored by Sens. Ben Cardin, D-Maryland; Bill Cassidy, R-Louisiana; Maria Cantwell, D-Washington; and Susan Collins, R-Maine. The 2023 legislation follows the introduction of similar bills in 2021 and 2019.  In 2019, there were 66 cosponsors in the House and 12 in the Senate. For the 2021 bill, there were 104 cosponsors in the House and 15 in the Senate. A similar bill is expected to be introduced in the House.

The Novogradac Introduction to Historic Tax Credits booklet provides an overview of the HTC incentive.