Last week, U.S. Senators Shelley Moore Capito and Mark Warner reintroduced the Rural Historic Tax Credit Improvement Act. The bill is designed to streamline processes, reduce costs for rural homeowners and small developers, and provide incentives for affordable housing.
Senator Capito emphasized the importance of private investment incentives like tax credits in preserving community history and revitalizing local economies. “Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” she stated. She also noted her collaboration with West Virginians who contributed perspectives during the legislation’s creation.
Senator Warner highlighted the dual benefits of expanding access to historic tax credits: preserving heritage and incentivizing affordable housing construction. “By expanding access to historic tax credits, we can preserve our nation’s rich heritage while also incentivizing the construction of more affordable housing,” he said.
Albert Rex, Chair of the Historic Tax Credit Coalition (HTCC), praised the senators’ efforts. “Senators Capito and Warner recognize the need to improve the Historic Tax Credit so it can continue to be a cornerstone of redevelopment across the country,” he commented.
In the House of Representatives, companion legislation is led by U.S. Rep. Mike Carey from Ohio’s 15th district.
Currently, many historic tax projects are not viable in small and rural areas due to cost constraints, favoring large urban developments instead. The proposed improvements aim to make these projects financially feasible in rural areas by increasing credit percentages and simplifying transactions.
The bill proposes making historic tax credit projects in rural areas eligible for an increased credit from 20% to 30%, with an additional increase up to 40% for affordable housing creation. It allows these credits to be used alongside Low-Income Housing Tax Credits (LIHTC) and offers first-year claim options for small rural projects, transferability of credits, and eliminates basis adjustment.
Supporters include the Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation.
