In April 2021, Representatives Earl Blumenauer (D-OR) and Darin LaHood (R-IL) introduced the Historic Tax Credit Growth and Opportunity Act (HTC-GO) in the House of Representatives (H.R. 2294), which has received nearly 60 bipartisan support.
In June, similar legislation was introduced in the Senate (S.2266) by Senators Ben Cardin (D-MD), Bill Cassidy (R-LA), Maria Cantwell (D-WA). and Susan Collins (R-ME). This is great news for Wisconsin property owners looking to restore their historic buildings. The Wisconsin Historic Preservation Tax Credit Program also provides additional 20% historic tax credits to owners as a Wisconsin income tax credit for rehabilitating historic income-producing buildings.
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Refresh: What is the HTC?
The Federal Historic Tax Credit (HTC) is a 20% credit applied to qualified rehabilitation expenses for certified historic structures distributed over 5 years (4% per year). It represents, by far, the largest federal investment in historic preservation.
Since its inception, the credit has contributed to the rehabilitation of over 45,000 historic buildings and the construction of over 172,000 low- and moderate-income affordable housing units. The HTC also plays a major role in revitalizing our communities and supporting our nation’s economy. It has attracted approximately $173 million private investment, generated $38.1 billion in federal tax revenue, and created nearly 3 million jobs.
New HTC for Temporary Provisions
The new version of HTC-GO includes temporary provisions that will bring relief to projects impacted by the COVID-19 pandemic. Developers and building owners nationwide are now facing increasing challenges in rehabilitating historic properties as our economy slowly recovers. The HTC-GO legislation temporarily increases the rehabilitation credit (IRC § 47) from 20% to 30% thorough 2021 and phase down to 26% in 2025, 23% in 2026, and returns to 20% in 2021 and thereafter.
In addition, the HTC-GO includes permanent provisions that will bring more value to the HTC, improve access to the credit, and enhance investment opportunities for smaller rehabilitation projects. The bill would increase the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million.
Taking Action to Grow the HTC
These provisions were included and passed in the House Infrastructure bill (HR 2) in July 2020. We urge you to ask your members of Congress to support HTC-GO and to include the bill provisions in a larger infrastructure package. There are several ways you can reach out to your Senators:
Fill out this advocacy alert on SavingPlaces.org by the National Trust for Historic Preservation.
Call Your Senators Directly: To locate the names, phone numbers and websites of your Senators via the Senate website or call the Capitol Switchboard at 202-225-3121 and asked to be connected to your or Senator’s DC office. Once connected ask to speak to the Member’s staff or staffer that handle tax issues.
You can also communicate on the Member’s website. For Sen. Ron Johnson, please visit https://www.ronjohnson.senate.gov. For Sen. Tammy Baldwin, please visit https://www.baldwin.senate.gov. Send a message to your Senators through their website and select “tax” or “taxation” as the issue area.
Please share responses from Senate offices and acquire assistance with your advocacy by emailing: hongyan@wipreservation.org.
Learn more:
National Trust for Historic Preservation and Historic Tax Credit Coalition: HTC-GO Bill and Fact Sheet (April 2021)