Bill · H.R. 1454· House(119-HR-1454)
Rural Historic Tax Credit Improvement Act
- Introduced
- 2/21/2025
- Last activity
- 2/21/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Mike Carey
- Cosponsors
- - 2 - 1
- Introduced
- In Committee
What this bill would do
The Rural Historic Tax Credit Improvement Act seeks to amend the Internal Revenue Code of 1986. It focuses on enhancing the rehabilitation credit for buildings located in rural areas. The bill establishes specific credit percentages for rural projects, with higher rates for those categorized as affordable housing. It also introduces provisions allowing taxpayers to transfer these credits. Additionally, the act includes rules regarding the recapture of credits if affordable housing requirements are not met. These changes are intended to apply to property placed in service after December 31, 2025.
Yes· 3 of 10
Would people in rural areas be better off under this?+6
The bill specifically targets rural areas for economic and housing development through enhanced tax credits.
Does this make housing cost less?+6
The bill specifically incentivizes affordable housing projects in rural areas through higher tax credit percentages.
Would business owners be better off under this?+5
The bill offers lucrative tax credits and transferability options for those engaging in rural rehabilitation projects.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Incentives for Rural Housing Projects: The bill provides a rehabilitation credit of 40 percent for applicable rural projects that are considered affordable housing projects (Section 2(a)(3)(A)(i)(I)).
-
Support for Non-Affordable Rural Projects: For rural projects that are not classified as affordable housing, the bill still provides a rehabilitation credit of 30 percent (Section 2(a)(3)(A)(ii)).
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Flexibility through Credit Transfers: Taxpayers are permitted to transfer all or a portion of the rehabilitation credit determined for an applicable rural project (Section 2(a)(4)(A)).
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Definition of Affordable Housing: The bill defines affordable housing as a decent, safe, and sanitary dwelling for households with incomes not exceeding 80 percent of the median income for the market area (Section 2(a)(3)(C)(ii)).
Potential Negative Impacts for People
-
Financial Penalty for Non-Compliance: If an affordable housing project violates specific requirements, the tax for that year shall be increased by 100 percent of the aggregate decrease in credits allowed from prior years (Section 2(b)(1)(A)).
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Cap on Expenditures: For any applicable rural project, the total amount of qualified rehabilitation expenditures that can be taken into account is limited to $5,000,000 (Section 2(a)(3)(B)(ii)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Rural Residents+6Good For Business Owners+5Good For Low Income Households+4Good For Middle Class Households+2
- Economy And Finance
- Reduces Small Business Taxes+5Increases Job Creation+4Improves Economic Growth+3
- Social Issues And Justice
- Improves Affordable Housing+6Improves Poverty Reduction+3
- Environment Energy And Infrastructure
- Improves Rural Development+5
- 3/21/2025
- 2 Cosponsors added.
- 2/21/2025
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Steven HorsfordDemocrat · Nevada
Carol MillerRepublican · West Virginia
Riley MooreRepublican · West Virginia