A bipartisan group of House of Representatives members today introduced the Historic Tax Credit Growth and Opportunity (HTC-GO) Act of 2021, a bill that includes a temporary increase in the federal historic tax credit (HTC) and a permanent increase in the HTC percentage for small projects. The legislation would increase the HTC percentage from 20% to 30% for 2020-2024, then begin a gradual decline back to 20% by 2027. The bill also would provide a permanent increase in the HTC percentage to 30% for the first $2.5 million of qualified rehabilitation expenditures for smaller projects; a drop in the substantial rehabilitation test threshold from 100% to 50% of the adjusted basis; the elimination of the HTC basis adjustment and elimination of the Internal Revenue Code Section 50(d) income recognition requirement and more. Reps. Earl Blumenauer, D-Oregon; Darrin LaHood, R-Illinois; Brian Higgins, D-New York and Terri Sewell, D-Alabama, are the original sponsors of the bill.

A Notes from Novogradac blog post explains details of the legislation. The 2020 Novogradac  Historic Rehabilitation Handbook provides an overview of the HTC and intricacies of the HTC incentive.