Historic Tax Credit Growth and Opportunity Act of 2025

The Historic Tax Credit Growth and Opportunity Act of 2025 aims to modernize and expand the federal Historic Tax Credit (HTC) program to encourage more private investment in older buildings. Currently, the program provides a 20% tax credit for the rehabilitation of certified historic structures, which is distributed over five years. This bill proposes returning to a one-year credit delivery system, allowing owners to claim the full credit in the year the building is finished. It also seeks to lower the financial threshold for what qualifies as a "substantial rehabilitation," making it easier for more property owners to qualify for the incentive.

For everyday citizens and small business owners, the bill would introduce a higher 30% tax credit for smaller projects (those with expenses under $3.75 million) and rural projects (under $5 million). It also proposes making these credits easier to transfer or sell, which helps smaller developers and nonprofits—such as community health centers or local theaters—secure the necessary funding for their projects. Additionally, the bill would eliminate a rule that currently reduces a building's tax basis by the amount of the credit, a change intended to make it simpler to combine historic credits with other incentives like the Low-Income Housing Tax Credit.