U.S. Senators Shelley Moore Capito and Mark Warner have introduced the Rural Historic Tax Credit Improvement Act, a legislative effort aimed at making historic tax credit projects more accessible and economically viable for rural homeowners and small developers. The bill seeks to streamline processes, reduce costs, and provide incentives for affordable housing.
Senator Capito emphasized the importance of private investment 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 expressed appreciation for West Virginians who contributed insights during the bill’s creation.
Senator Warner highlighted the potential benefits of expanding access to historic tax credits, stating, “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 expressed pride in collaborating with Senator Capito on this initiative.
Currently, many historic tax projects are not financially feasible in smaller rural areas, giving an advantage to urban developments. The new legislation aims to address this imbalance by increasing the credit from 20% to 30% for eligible rural projects and up to 40% for affordable housing initiatives. It also allows these credits to be used alongside the Low-Income Housing Tax Credit (LIHTC).
The act proposes several changes: allowing small rural projects to claim the credit in their first year of use, enabling transferability of the credit to third parties, and eliminating basis adjustment requirements.
The Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation have expressed support for this bill.
