[Congressional Record Volume 171, Number 113 (Monday, June 30, 2025)]
[Senate]
[Pages S4098-S4099]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2698. Mr. WARNER submitted an amendment intended to be proposed to
amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill
H.R. 1, to provide for reconciliation pursuant to title II of H. Con.
Res. 14; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
Subchapter _--Historic Tax Credit Modifications
SEC. ____1. FULL CREDIT ALLOWED IN THE YEAR BUILDING PLACED
IN SERVICE.
(a) In General.--Section 47(a) is amended to read as
follows:
``(a) General Rule.--For purposes of section 46, the
rehabilitation credit for any taxable year is 20 percent of
the qualified rehabilitation expenditures.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2025.
SEC. ____2. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN
SMALL PROJECTS.
(a) In General.--Section 47 is amended by adding at the end
the following new subsection:
``(e) Special Rule Regarding Certain Small Projects.--
``(1) In general.--In the case of any qualifying small
project with respect to which there is an election in effect
under this subsection--
``(A) the total qualified rehabilitation expenditures taken
into account for purposes of this section with respect to the
rehabilitation shall not exceed $3,750,000,
``(B) subsection (a) shall be applied by substituting `30
percent' for `20 percent', and
``(C) subject to paragraph (4) and such regulations or
other guidance as the Secretary may provide, the taxpayer may
transfer all or a portion of the credit determined under this
section with respect to such qualifying small project.
``(2) Qualifying small project.--For purposes of this
subsection, the term `qualifying small project' means any
qualified rehabilitated building or portion thereof if--
``(A) such building is placed in service after the date of
the enactment of this subsection, and
``(B) no credit was allowed under this section (other than
a credits allowed by reason of subsection (d)) for either of
the two immediately preceding taxable years with respect to
such building.
``(3) Special rule for rural projects.--
``(A) In general.--In the case of any qualifying small
project in a rural area, paragraph (1)(A) shall be applied by
substituting `$5,000,000' for `$3,750,000'.
``(B) Rural area.--For purposes of this subparagraph, the
term `rural area' means any area other than--
``(i) a city or town that has a population of greater than
50,000 inhabitants, or
[[Page S4099]]
``(ii) the urbanized area contiguous and adjacent to a city
or town described in clause (i), as defined by the Bureau of
the Census based on the latest decennial census of the United
States.
``(4) Transfer of credit for qualifying small projects.--
``(A) Certification.--
``(i) In general.--A transfer under paragraph (1)(C)) 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 subsection to a taxpayer shall be
transferable to any other taxpayer.
``(B) 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 paragraph (1)(C)--
``(I) shall not be allowed to the transferor for any
taxable year, and
``(II) shall be allowable to the transferee as a credit
determined 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.
``(C) Recapture and other special rules.--The taxpayer who
claims a credit determined under this section by reason of a
transfer of an amount of credit under paragraph (1)(A) with
respect to an applicable rural project shall be treated as
the taxpayer with respect to such project for purposes of
section 50.
``(D) Information reporting.--The transferor and the
transferee shall each make such reports regarding the
transfer of an amount of credit under paragraph (1)(C) and
containing such information as the Secretary may require. The
reports required by this subparagraph shall be filed at such
time and in such manner as may be required by the Secretary.
``(E) Regulations.--The Secretary shall prescribe
regulations or other guidance to carry out paragraph (1)(C)
and this paragraph in a manner which is consistent with
applicable requirements with respect to transfer of credits
under section 6418.
``(5) Election.--An election under this subsection shall be
made at such time and in such manner as the Secretary may by
regulations prescribe.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after the date of
the enactment of this Act.
SEC. ____3. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR
REHABILITATION.
(a) In General.--Section 47(c)(1)(B)(i)(I) is amended by
inserting ``50 percent of'' before ``the adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to property placed in service after the date of
the enactment of this Act..
SEC. ____4. ELIMINATION OF REHABILITATION CREDIT BASIS
ADJUSTMENT.
(a) In General.--Section 50(c) 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) 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. ____5. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE
PROPERTY.
(a) In General.--Section 47(c)(2)(B)(v) 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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