[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2825 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 2825
To amend the Internal Revenue Code of 1986 to modify the rehabilitation
credit for certain small projects, to eliminate the requirement that
the taxpayer's basis in a building be reduced by the amount of the
rehabilitation credit determined with respect to such building, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 17, 2019
Mr. Blumenauer (for himself, Mr. Kelly of Pennsylvania, Ms. Sewell of
Alabama, Mr. LaHood, Mr. Higgins of New York, and Mr. Turner)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the rehabilitation
credit for certain small projects, to eliminate the requirement that
the taxpayer's basis in a building be reduced by the amount of the
rehabilitation credit determined with respect to such building, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Historic Tax Credit Growth and
Opportunity Act of 2019''.
SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL
PROJECTS.
(a) In General.--Section 47 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(e) Special Rule Regarding Certain Smaller Projects.--
``(1) In general.--In the case of any qualified
rehabilitated building or portion thereof--
``(A) which is placed in service after the date of
the enactment of this subsection, and
``(B) which is a smaller project,
subsection (a)(2) shall be applied by substituting `30 percent'
for `20 percent'.
``(2) Maximum credit.--The credit determined under this
subsection with respect to any smaller project for all taxable
years shall not exceed $750,000.
``(3) Smaller project defined.--
``(A) In general.--For purposes of this subsection,
the term `smaller project' means any qualified
rehabilitated building or portion thereof if--
``(i) the qualified rehabilitation
expenditures taken into account for purposes of
this section (or would have been so taken into
account if this subsection had been in effect
for all prior periods) with respect to the
rehabilitation are not over $3,750,000, and
``(ii) no credit was allowed under this
section for either of the 2 prior taxable years
with respect to such building.
``(B) Progress expenditures.--Credit allowable by
reason of subsection (d) shall not be taken into
account under subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section shall apply
to periods after the date of the enactment of this Act, under rules
similar to the rules of section 48(m) of the Internal Revenue Code of
1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
SEC. 3. ALLOWANCE FOR THE TRANSFER OF CREDITS FOR CERTAIN SMALL
PROJECTS.
(a) In General.--Section 47(e) of the Internal Revenue Code of
1986, as amended by section 2, is amended by adding at the end the
following new subsection:
``(4) Transfer of smaller project credit.--
``(A) In general.--Subject to subparagraph (B) and
such regulations or other guidance as the Secretary may
provide, the taxpayer may transfer all or a portion of
the credit allowable to the taxpayer under subsection
(a) for a smaller project.
``(B) Certification.--
``(i) In general.--A transfer under
subparagraph (A) shall be accompanied by a
certificate which includes--
``(I) the certification for the
certified historic structure referred
to in subsection (c)(3),
``(II) the taxpayer's name,
address, tax identification number,
date of project completion, and the
amount of credit being transferred,
``(III) the transferee's name,
address, tax identification number, and
the amount of credit being transferred,
and
``(IV) such other information as
may be required by the Secretary.
``(ii) Transferability of certificate.--A
certificate issued under this section to a
taxpayer shall be transferable to any other
taxpayer.
``(C) Tax treatment relating to certificate.--
``(i) Disallowance of deduction.--No
deduction shall be allowed for the amount of
consideration paid or incurred by the
transferee.
``(ii) Allowance of credit.--The amount of
credit transferred under subparagraph (A)--
``(I) shall not be allowed to the
transferor for any taxable year, and
``(II) shall be allowable to the
transferee as a credit under this
section for the taxable year of the
transferee in which such credit is
transferred.
``(iii) Exclusion.--Gross income shall not
include any amount received in connection with
the transfer of the certificate.
``(D) Recapture and other special rules.--The
taxpayer who claims a credit under this section by
reason of a transfer of an amount of credit under
subparagraph (A) with respect to a smaller project
shall be treated as the taxpayer with respect to the
smaller project for purposes of section 50.
``(E) Information reporting.--The transferor and
the transferee shall each make such reports regarding
the transfer of an amount of credit under paragraph (A)
and containing such information as the Secretary may
require. The reports required by this subsection shall
be filed at such time and in such manner as may be
required by the Secretary.
``(F) Regulations.--The Secretary shall prescribe
regulations or other guidance to carry out this
paragraph.''.
(b) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act.
SEC. 4. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR REHABILITATION.
(a) In General.--Section 47(c)(1)(B)(i)(I) of the Internal Revenue
Code of 1986 is amended by inserting ``50 percent of'' before ``the
adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 5. ELIMINATION OF REHABILITATION CREDIT BASIS ADJUSTMENT.
(a) In General.--Section 50(c) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(6) Exception for rehabilitation credit.--In the case of
the rehabilitation credit, paragraph (1) shall not apply.''.
(b) Treatment in Case of Credit Allowed to Lessee.--Section 50(d)
of such Code is amended by adding at the end the following: ``In the
case of the rehabilitation credit, paragraph (5)(B) of the section
48(d) referred to in paragraph (5) of this subsection shall not
apply.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 6. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.
(a) In General.--Section 47(c)(2)(B)(v) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subclause:
``(III) Disqualified lease rules to
apply only in case of government
entity.--For purposes of subclause (I),
except in the case of a tax-exempt
entity described in section
168(h)(2)(A)(i), the determination of
whether property is tax-exempt use
property shall be made under section
168(h) without regard to whether the
property is leased in a disqualified
lease (as defined in section
168(h)(1)(B)(ii)).''.
(b) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
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