Washington, DC – The Historic Tax Credit Coalition (HTCC) praised Senators Bill Cassidy (R-LA) and Mark Warner (D-VA) and Representatives Darin LaHood (R-IL-16) and Tom Suozzi (D-NY-3) for introducing the 119th Congress’s version of the Historic Tax Credit Growth and Opportunity (HTC-GO) Act. The bills (S. /H.R. ) build on many years of advocacy by the HTC community and a strong commitment from the bill’s champions to preserve and modernize the federal Historic Tax Credit.

The HTCC looks forward to working with the champions of this legislation to see the bill enacted as part of the tax debate in the 119th Congress.

“These Historic Tax Credit champions have been steadfast advocates to improve the federal credit,” Albert Rex, chair of the HTCC said. He continued, “The Coalition, representing users of the credit in every corner of the country, is energized to work with our Congressional champions to make the first positive changes to the credit since 1986.”

The bill, with leadership from senior members of both tax-writing committees and support from across the ideological spectrum in Congress would make the first positive legislative changes to the HTC since tax reform in 1986.

About the Historic Tax Credit Growth and Opportunity Act

The bill brings more value to the HTC, makes the credit easier to use and encourages smaller projects. New provisions include returning to a one-year delivery of HTC and further incentives for rural projects, as well as including the ability to transfer credits for smaller projects.

HTC-GO Provisions

• Returns to a 1-year delivery of Historic Tax Credits for all projects

• Since 2017, the 20% tax credit has been delivered over 5-years (4% per year); this provision will return delivery of the HTC to 1-year.

• Lowers the Substantial Rehab Test from 100% to 50% of a building’s basis

• Lowers the substantial rehabilitation threshold, making more projects eligible to use the HTC.

• Eliminates the HTC Basis Adjustment Requirement

• Eliminates the requirement that the amount of the HTC must be deducted from a building’s basis (the property’s cost for tax purposes), increasing the value of the HTC and making it much easier to pair with the federal Low-Income Housing Tax Credit.

• Modifies Tax Exempt Use Rules

• Makes the HTC easier to use by nonprofits such as community health centers, local arts centers, affordable housing, homeless services, museums, theaters, and others by eliminating Tax Code restrictions that make it challenging for nonprofits to partner with developers.

• Increases the credit for smaller projects:

• Projects below $3.75 million will receive a 30% credit.

• Rural projects below $5 million will receive a 30% credit. (Rural Definition: Cities/towns with populations less than 50,000 and not contiguous and adjacent to cities/towns of 50,000 in population).

• All small projects are eligible for direct transfer, without need of a partnership-style investment.

About the Historic Tax Credit

The federal Historic Tax Credit (HTC) has served as a cornerstone for community revitalization efforts throughout the nation for more than forty years. The HTC creates public private partnerships between historic property owners and for-profit investors who work with the National Park Service (NPS), and a network of state historic preservation offices that support constituents in identifying eligible historic properties and guide them toward successful rehabilitation outcomes.

The HTC is the most significant financial investment the federal government makes toward the rehabilitation and reuse of our nation’s historic buildings. To date, the credit has preserved more than 50,000 properties in every state leveraging more than $235 billion in private investment. The federal HTC is a model credit that has led 39 states to create their own similar tax incentive programs that work with the federal program. The HTC provides essential gap financing for buildings in urban, suburban and rural areas and is a true catalyst to revitalize vibrant, people-centric communities. After four decades of service, however, the HTC needs updating to continue to encourage community development, as originally intended, and drive more private investment into hard-to-reach areas. The most recent report on the credit’s performance can be found here.

Quotes for each champion

Senator Bill Cassidy

“Senator Cassidy has been the patron saint of the Historic Tax Credit in the United States Senate,” HTCC Chair Albert Rex said. “He saved the credit in the 2017 tax reform process and since has been the leading advocate for expanding and enhancing the HTC. We cannot thank him enough, Rex concluded.

"Louisiana continues to be a powerhouse in Federal Historic Tax Credit utilization, and this success is directly attributable to Senator Cassidy and our committed Louisiana Congressional delegation," said Whitney LaNasa, HTCC Board Member and Senior Managing Director of Stonehenge Capital headquartered in Baton Rouge. "We're enthusiastic about collaborating with Senator Cassidy and our legislative champions to enhance the Historic Tax Credit program and ensure its impact resonates across every region of our state and throughout the nation."

“The Louisiana Congressional delegation – from top to bottom – has provided bipartisan support and demonstrated true dedication to preserving and enhancing the federal Historic Tax Credit, Robert Lay, HTCC Board Member from New Orleans, LA said. “Senator Cassidy has been a champion of the HTC and has joined many of his colleagues in introducing a bill that will make significant improvements to the program to bring more economic development to Louisiana and every other state across the country, including rural and metropolitan communities alike.”

Congressman Darin LaHood

“Congressman LaHood has seen firsthand the benefit of the Historic Tax Credit in Normal, Peoria, Rockford, Galena, and across the 16th District and the State of Illinois,” HTCC Chair Albert Rex said. “He has been as strong a supporter as the credit has ever had and we look forward to working with him to modernize the credit and assure more projects in his district and beyond can use this crucial redevelopment tool,” he concluded.

“We so appreciate all Mr. LaHood has done to champion the Historic Tax Credit in Congress, on the Ways and Means Committee, with multiple Administrations and beyond,” Forrest Milder, Past Chair of the Coalition said. “He has been a champion of using this preservation tool for important redevelopment projects on Main Streets across his district,” Milder concluded.

Senator Mark Warner

“We are excited to have Senator Warner as the lead co-sponsor of the Senate version of the bill this year,” HTCC Chair Albert Rex said. “Virginia is one of the most frequent users of the program and you can see its impact in Richmond, Marion, Bristol, Arlington, Winchester, Harrisonburg, Petersburg, and across the Commonwealth,” he concluded.

 “Senator Warner has always recognized the value of the Historic Tax Credit to Virginia and the country,” Michael Phillips, Chair of the HTCC Advocacy Committee and a Virginian said. “He has seen firsthand the impacts all over the state and we appreciate his leadership this Congress in working to expand the credit to allow buildings to be rehabilitated for another generation,” Phillips concluded.

Representative Tom Suozzi

“New York is one of the leading users of the federal Historic Tax Credit and has a long history of rehabilitating downtowns, Main Streets, and more urban areas,” HTCC Chair Albert Rex said. “We are excited to have Mr. Suozzi, a member of the House Ways and Means Committee, join our efforts to expand usage of the credit in places like Long Island and upstate,” Rex concluded.

Information on HTCC Leadership can be found here, including bios of the Board Members quoted above.