Historic Tax Credit Growth and Opportunity Act of 2025

Increased Credit for Small Projects: Under Section 3, qualifying small projects can receive a higher credit rate of 30 percent instead of the standard 20 percent, provided expenditures do not exceed $3,750,000 (Section 3(a)(1)(B)).

Benefits for Rural Areas: Section 3(a)(3) increases the maximum allowed qualified rehabilitation expenditures for projects located in rural areas from $3,750,000 to $5,000,000.

Credit Transferability: Section 3(a)(1)(C) allows taxpayers of qualifying small projects to transfer all or a portion of their determined credit to a transferee.

Expanded Building Eligibility: Section 4 amends the code to include "50 percent of" the adjusted basis for certain eligible buildings.

Elimination of Basis Adjustments: Section 5 amends the code to ensure that the basis adjustment requirements of section 50(c)(1) do not apply to the rehabilitation credit.

Transfer Restrictions: Under Section 3(a)(4)(A), taxpayers transferring credits must comply with specific certification requirements, including providing the name, address, and tax identification number of both the transferor and the transferee, along with the amount of credit being transferred.

Reporting Obligations: Section 3(a)(4)(D) requires both the transferor and the transferee to make reports regarding the transfer of the credit as required by the Secretary.