This week, a powerful message echoed through the halls of Congress: the time to revitalize the federal Historic Tax Credit (HTC) is now. With the introduction of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in both chambers of Congress—H.R. 2941 in the House and S. 1459 in the Senate—lawmakers from both parties have united around a shared goal: to breathe new life into one of the nation’s most impactful preservation and economic development tools.
Championed by Senators Bill Cassidy (R-LA) and Mark Warner (D-VA), along with Representatives Darin LaHood (R-IL) and Tom Suozzi (D-NY), the HTC-GO Act represents a major step toward restoring the full power and potential of the federal Historic Tax Credit.
Preservation Action has issued a call for support. Ohioans, your voices are needed!
What’s in the HTC-GO Act?
The HTC-GO legislation includes several key reforms designed to modernize the credit, expand access, and strengthen its impact—especially for underserved communities and smaller projects. Here’s what the proposed bill would do:
- Restore 1-Year Credit Delivery: Projects would once again be able to receive their full tax credit in the first year, increasing investor confidence and accelerating development.
- Eliminate the Basis Adjustment: This change brings greater value to the credit and makes it easier to combine with other tools like the Low-Income Housing Tax Credit.
- Lower the Rehabilitation Threshold: Reducing the substantial rehabilitation requirement from 100% to 50% allows more historic buildings to qualify for the credit.
- Modify Tax-Exempt Use Rules: Non-profits and mission-driven organizations would find it easier to utilize the credit for community benefit.
- Boost Credit to 30% for Small Projects: Projects under $3.75 million would see their credit rise from 20% to 30%.
- 30% Credit for Rural Projects under $5 Million: A vital change to ensure revitalization reaches America’s rural towns.
- Enable Direct Transfer for Small/Rural Projects: This makes the credit more accessible and flexible for smaller developers.
Why It Matters
The federal Historic Tax Credit is the single largest federal investment in historic preservation. Since its inception, it has spurred over $100 billion in private investment, created hundreds of thousands of jobs, and preserved tens of thousands of buildings across the country.
Yet over the past decade, this once-vibrant tool has lost more than 25% of its value—undermined by regulatory changes, IRS rulings, and structural complications. The HTC-GO Act offers a crucial course correction, restoring lost value and making the credit more usable for communities of all sizes.
A Moment of Opportunity
Congress is preparing a major tax package, and the window to secure HTC provisions is open—but narrowing. With tax reform front and center on the federal agenda, preservation advocates are being called to action. Including HTC enhancements in the emerging tax legislation is not just a hope—it’s a real possibility, if enough voices speak out.
How You Can Help
Now is the time to act. Advocates are urged to contact their members of Congress and encourage them to cosponsor the HTC-GO Act and ensure these provisions are included in tax legislation. The future of many historic buildings—and the communities they anchor—may depend on it.
Preservation Action has made the process simple. Visit their Action Alert page to learn more and send a message to your elected officials. Your voice can help protect the past and build a stronger future.
Source: Preservation Action
