HTC Growth and Opportunity Act Introduced in Senate

Thursday, October 17, 2019 - 8:45am

Sens. Bill Cassidy, R-La., Ben Cardin, D-Md., Susan Collins, R-Maine, and Maria Cantwell, D-Wash., today introduced the Historic Tax Credit Growth and Opportunity Act. The bill is designed to bring more value to historic tax credit (HTC) transactions and to encourage redevelopment of smaller, income-producing properties. The Senate bill eliminates the HTC basis adjustment requirement, increases the HTC from 20 percent to 30 percent for properties with rehabilitation expenses of less than $3.75 million (capped at $750,000), makes it easier to meet the substantial rehabilitation test and creates greater flexibility for nonprofits to partner with developers. The Senate bill is a companion bill to the House version of the legislation, except that the Senate bill does not allow the transfer of HTCs as a tax certificate in developments with qualified rehabilitation expenses of less than $2.5 million. The House bill was introduced in May by Reps. Earl Blumenauer, D-Ore., Darin LaHood, R-Ill., Terri Sewell, D-Ala., and Mike Kelly, R-Pa.