I 

117TH CONGRESS 

1ST SESSION H. R. 1483 

To amend the Internal Revenue Code of 1986 to modify the rehabilitation 

credit. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2021 

Mr. BLUMENAUER 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Revitalizing Econo5 mies, Housing, And Businesses Act of 2021’’ or as the 

6 ‘‘REHAB Act of 2021’’. 

7 SEC. 2. MODIFICATION OF REHABILITATION CREDIT. 

8 (a) REINSTATEMENT OF CREDIT FOR QUALIFIED

9 REHABILITATED BUILDINGS.— 


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1 (1) IN GENERAL.—Subsection (a) of section 47 

2 of the Internal Revenue Code of 1986 is amended to 

3 read as follows: 

4 ‘‘(a) DETERMINATION OF CREDIT.— 

5 ‘‘(1) IN GENERAL.—For purposes of section 46, 

6 the rehabilitation credit for any taxable year is the 

7 sum of— 

8 ‘‘(A) in the case of any qualified rehabili9 tated building other than a certified historic 

10 structure which is placed in service during such 

11 taxable year, 10 percent of the qualified reha12 bilitation expenditures with respect to such 

13 building, and 

14 ‘‘(B) in the case of any qualified rehabili15 tated building which is a certified historic struc16 ture which is placed in service during such tax17 able year or any of the 4 immediately preceding 

18 taxable years, the ratable share for such taxable 

19 year. 

20 ‘‘(2) RATABLE SHARE.—For purposes of para21 graph (1)(B), the ratable share for any taxable year 

22 is an amount equal to 20 percent of the qualified re23 habilitation expenditures with respect to the certified 

24 historic structure, as allocated ratably to each of the 

25 5 years to which paragraph (1)(B) applies.’’. 


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1 (2) CONFORMING AMENDMENTS.— 

2 (A) Section 47(c) of such Code is amend3 ed— 

4 (i) in paragraph (1)— 

5 (I) in subparagraph (A), by 

6 amending clause (iii) to read as fol7 lows: 

8 ‘‘(iii) in the case of any building other 

9 than a certified historic structure, in the 

10 rehabilitation process— 

11 ‘‘(I) 50 percent or more of the 

12 existing external walls of such build13 ing are retained in place as external 

14 walls, 

15 ‘‘(II) 75 percent or more of the 

16 existing external walls of such build17 ing are retained in place as internal or 

18 external walls, and 

19 ‘‘(III) 75 percent or more of the 

20 existing internal structural framework 

21 of such building is retained in place, 

22 and’’, and 

23 (II) by redesignating subpara24 graphs (B) and (C) as subparagraphs 

25 (C) and (D), respectively, and by inVerDate Sep 11 2014 01:03 Apr 16, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1483.IH H1483

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1 serting after subparagraph (A) the 

2 following new subparagraph: 

3 ‘‘(B) BUILDING MUST BE FIRST PLACED

4 IN SERVICE BEFORE 1936.—In the case of a 

5 building other than a certified historic struc6 ture, a building shall not be a qualified rehabili7 tated building unless the building was first 

8 placed in service before 1936.’’, and 

9 (ii) in paragraph (2)(B), by amending 

10 clause (iv) to read as follows: 

11 ‘‘(iv) CERTIFIED HISTORIC STRUC12 TURE, ETC.—Any expenditure attributable 

13 to the rehabilitation of a certified historic 

14 structure or a building in a registered his15 toric district, unless the rehabilitation is a 

16 certified rehabilitation (within the meaning 

17 of subparagraph (C)). The preceding sen18 tence shall not apply to a building in a reg19 istered historic district if— 

20 ‘‘(I) such building was not a cer21 tified historic structure, 

22 ‘‘(II) the Secretary of the Inte23 rior certified to the Secretary that 

24 such building is not of historic signifi25 cance to the district, and 


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1 ‘‘(III) if the certification referred 

2 to in subclause (II) occurs after the 

3 beginning of the rehabilitation of such 

4 building, the taxpayer certifies to the 

5 Secretary that, at the beginning of 

6 such rehabilitation, he in good faith 

7 was not aware of the requirements of 

8 subclause (II).’’. 

9 (B) Paragraph (4) of section 145(d) of 

10 such Code is amended— 

11 (i) by striking ‘‘of section 

12 47(c)(1)(B)’’ each place it appears and in13 serting ‘‘of section 47(c)(1)(C)’’, and 

14 (ii) by striking ‘‘section 

15 47(c)(1)(B)(i)’’ and inserting ‘‘section 

16 47(c)(1)(C)(i)’’. 

17 (b) INCREASE IN CREDIT RATE FOR QUALIFIED RE18 HABILITATED BUILDINGS OTHER THAN CERTIFIED HIS19 TORIC STRUCTURES.—Section 47(a)(1) of such Code, as 

20 amended by subsection (a), is amended by striking ‘‘10 

21 percent’’ and inserting ‘‘15 percent’’. 

22 (c) MODIFICATION OF DATE BEFORE WHICH BUILD23 INGS OTHER THAN CERTIFIED HISTORIC STRUCTURES

24 MUST BE PLACED IN SERVICE.—Section 47(c)(1)(B) of 

25 such Code, as amended by subsection (a), is amended by 


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1 striking ‘‘1936’’ and inserting ‘‘the calendar year which 

2 is 50 years prior to the calendar year in which the building 

3 is placed in service (within the meaning of subsection 

4 (b)(1))’’. 

5 (d) REQUIREMENT THAT BUILDINGS OTHER CER6 TIFIED HISTORIC STRUCTURES MUST BE CLOSE TO PUB7 LIC TRANSPORTATION CENTERS.—Section 47(c)(1) of 

8 such Code, as amended by subsection (a), is amended by 

9 redesignating subparagraphs (C) and (D) as subpara10 graphs (D) and (E), respectively, and by inserting after 

11 subparagraph (B) the following new subparagraph: 

12 ‘‘(C) BUILDING MUST BE CLOSE TO PUB13 LIC TRANSPORTATION CENTER.— 

14 ‘‘(i) IN GENERAL.—In the case of a 

15 building other than a certified historic 

16 structure, a building shall not be a quali17 fied rehabilitated building unless the build18 ing is not further than one-half mile from 

19 at least one of the following: 

20 ‘‘(I) A location which provides 

21 passenger boarding on a fixed guide22 way (as defined in section 5302(7) of 

23 title 49, United States Code), com24 muter rail passenger transportation 

25 (as defined in section 24102(3) of 


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1 title 49, United States Code), or 

2 intercity rail passenger transportation 

3 (as defined in section 24102(4) of 

4 title 49, United States Code). 

5 ‘‘(II) A planned site for a loca6 tion described in subclause (I) if the 

7 Secretary of Transportation has 

8 issued a full funding grant agreement 

9 with respect to such location under 

10 section 5309(k)(2) of title 49, United 

11 States Code. 

12 ‘‘(ii) IDENTIFICATION OF QUALIFIED

13 AREAS.—The Secretary, in consultation 

14 with the Secretary of Transportation, shall 

15 identify areas which are described in clause 

16 (i).’’. 

17 (e) ELIMINATION OF CERTAIN LODGING RESTRIC18 TIONS ON BUILDINGS OTHER THAN CERTIFIED HISTORIC

19 STRUCTURES.—Section 50(b)(2)(C) of such Code is 

20 amended by striking ‘‘certified historic structure’’ and in21 serting ‘‘qualified rehabilitated building’’. 

22 (f) REQUIREMENT THAT BUILDINGS THAT ARE NOT

23 CERTIFIED HISTORIC STRUCTURES AND NOT IN A REG24 ISTERED HISTORIC DISTRICT RECEIVE CERTIFICATION

25 OF STATUS.—Section 47(c)(1) of such Code, as amended 


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1 by subsections (a) and (d), is amended by redesignating 

2 subparagraphs (D) and (E) as subparagraphs (E) and 

3 (F), respectively, and by inserting after subparagraph (C) 

4 the following new subparagraph: 

5 ‘‘(D) BUILDINGS THAT ARE NOT CER6 TIFIED HISTORIC STRUCTURES AND NOT IN

7 REGISTERED HISTORIC DISTRICT MUST RE8 CEIVE CERTIFICATION OF STATUS.— 

9 ‘‘(i) IN GENERAL.—In the case of a 

10 building which is neither a certified his11 toric structure nor located in a registered 

12 historic district, such building shall not be 

13 a qualified rehabilitated building unless the 

14 Secretary of the Interior certifies to the 

15 Secretary that such building is— 

16 ‘‘(I) not a certified historic struc17 ture, and 

18 ‘‘(II) not in a registered historic 

19 district. 

20 ‘‘(ii) DETERMINATIONS BY NATIONAL

21 PARK SERVICE.—To the maximum extent 

22 practicable, the Secretary of the Interior 

23 shall make certifications under clause (i) 

24 within 30 days of the receipt of an applica25 tion for such certification.’’. 


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1 (g) CREDIT FOR CERTAIN RELATED EXPENDI2 TURES.— 

3 (1) CREDIT FOR CERTAIN EXPENDITURES FOR

4 PUBLIC INFRASTRUCTURE.—Section 47(c)(2) of 

5 such Code is amended by adding at the end the fol6 lowing new subparagraph: 

7 ‘‘(E) TREATMENT OF CERTAIN EXPENDI8 TURES FOR PUBLIC INFRASTRUCTURE.— 

9 ‘‘(i) IN GENERAL.—In the case of any 

10 qualified rehabilitated building, expendi11 tures for qualified public infrastructure (or 

12 improvements thereto) shall be treated for 

13 purposes of this section as qualified reha14 bilitation expenditures with respect to such 

15 building if providing such qualified public 

16 infrastructure is related to such building 

17 and is required by any State or local gov18 ernment. 

19 ‘‘(ii) LIMITATION.—The amount treat20 ed as qualified rehabilitation expenditures 

21 with respect to any building under clause 

22 (i) shall not exceed 25 percent of the quali23 fied rehabilitation expenditures with re24 spect to such building (determined after 


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1 the application of clause (i) and subpara2 graph (F)). 

3 ‘‘(iii) BONUS CREDIT AMOUNT.—In 

4 the case of any amount treated as qualified 

5 rehabilitation expenditures under clause 

6 (i), subsection (a)(1) shall be applied by 

7 substituting ‘25 percent’ for ‘15 percent’. 

8 ‘‘(iv) QUALIFIED PUBLIC INFRA9 STRUCTURE.—For purposes of this sub10 paragraph, the term ‘qualified public infra11 structure’ means water and sewer lines, 

12 electrical lines and equipment, tele13 communications lines and equipment, and 

14 road and sidewalks, which are located in 

15 the public right of way and are not owned 

16 by the taxpayer.’’. 

17 (2) CREDIT FOR EXPANSION AND ADJACENT

18 BUILDINGS WITH RESPECT TO QUALIFIED REHABILI19 TATED BUILDINGS OTHER THAN CERTIFIED HIS20 TORIC STRUCTURES.—Section 47(c)(2) of such 

21 Code, as amended by paragraph (1), is amended by 

22 adding at the end the following new subparagraph: 

23 ‘‘(F) TREATMENT OF BUILDING EXPAN24 SIONS AND CERTAIN ADJACENT BUILDINGS

25 WITH RESPECT TO QUALIFIED REHABILITATED


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1 BUILDINGS OTHER THAN CERTIFIED HISTORIC

2 STRUCTURES.— 

3 ‘‘(i) IN GENERAL.—In the case any 

4 qualified rehabilitated building other than 

5 a certified historic structure— 

6 ‘‘(I) clause (iii) of subparagraph 

7 (B) shall not apply, and 

8 ‘‘(II) amounts described in sub9 paragraph (A)(i) which are in connec10 tion with the rehabilitation or con11 struction of a qualified adjacent build12 ing shall be treated as qualified reha13 bilitation expenditures with respect to 

14 such qualified rehabilitated building. 

15 ‘‘(ii) LIMITATION.—The amount treat16 ed as qualified rehabilitation expenditures 

17 with respect to any qualified rehabilitated 

18 building under clause (i) shall not exceed 

19 100 percent of the qualified rehabilitation 

20 expenditures with respect to such building 

21 (determined without regard to clause (i) 

22 and subparagraph (E)). 

23 ‘‘(iii) QUALIFIED ADJACENT BUILD24 ING.—For purposes of this subparagraph, 

25 the term ‘qualified adjacent building’ 


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1 means, with respect to any qualified reha2 bilitated building, any building if such 

3 building and such qualified rehabilitated 

4 building are both on the same block.’’. 

5 (3) EXPENDITURES RELATED TO PUBLIC IN6 FRASTRUCTURE, ADJACENT BUILDINGS, AND BUILD7 ING EXPANSIONS DISREGARDED IN DETERMINING IF

8 REHABILITATION IS SUBSTANTIAL.—Section 

9 47(c)(1)(E), as redesignated by subsections (a), (d), 

10 and (f), is amended by adding at the end the fol11 lowing new clause: 

12 ‘‘(iv) CERTAIN EXPENDITURES DIS13 REGARDED.—Amounts which are otherwise 

14 treated as qualified rehabilitation expendi15 tures by reason of subparagraph (E) or 

16 (F) of paragraph (2) shall not be treated 

17 as qualified rehabilitation expenditures for 

18 purposes of this subparagraph.’’. 

19 (h) BONUS CREDIT FOR RENT-RESTRICTED HOUS20 ING UNITS.—Section 47 of such Code is amended by add21 ing at the end the following new subsection: 

22 ‘‘(e) BONUS CREDIT FOR RENT-RESTRICTED HOUS23 ING UNITS.— 

24 ‘‘(1) IN GENERAL.—Subsection (a)(1) shall be 

25 applied by substituting ‘25 percent’ for ‘15 percent’ 


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1 with respect to so much of the qualified rehabilita2 tion expenditures (determined without regard to sub3 section (c)(2)(E)) with respect to any qualified reha4 bilitated building as are properly allocable to resi5 dential units which are— 

6 ‘‘(A) rent-restricted (within the meaning of 

7 section 42(g)(2)), and 

8 ‘‘(B) occupied by individuals whose income 

9 is 100 percent or less of area median gross in10 come (within the meaning of section 42(g)(1)). 

11 ‘‘(2) FAILURE TO MAINTAIN RENT-RESTRICTION

12 SUBJECT TO RECAPTURE.—In the case of any fail13 ure to maintain any residential unit taken into ac14 count under paragraph (1) as a residential unit de15 scribed in such paragraph during the recapture pe16 riod, section 50(a) shall apply as though the quali17 fied rehabilitated building ceased to be investment 

18 credit property except that the recapture period and 

19 recapture percentage shall be determined under 

20 paragraph (3) and in determining the increase in tax 

21 under such section in lieu of reducing the credit de22 termined under this section to zero such credit shall 

23 be determined without regard to paragraph (1). The 

24 application of section 50(a) with respect to a build25 ing as described in this paragraph shall not prevent 


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1 the reapplication of such section to such building if 

2 such building is disposed of or otherwise ceases to 

3 be investment credit property and the tax imposed 

4 under such section by reason of such reapplication 

5 shall be reduced by the tax previously imposed as 

6 described in this paragraph. 

7 ‘‘(3) RECAPTURE PERIOD; RECAPTURE PER8 CENTAGE.—For purposes of this subsection— 

9 ‘‘(A) RECAPTURE PERIOD.—The term ‘re10 capture period’ means the 10-year period begin11 ning on the date the building is placed in serv12 ice. 

13 ‘‘(B) RECAPTURE PERCENTAGE.—The 

14 term ‘recapture percentage’ means— 

15 ‘‘(i) in the case of a failure described 

16 in paragraph (2) that occurs during the 

17 first year of the recapture period, 100 per18 cent, and 

19 ‘‘(ii) in the case of such a failure 

20 which occurs during any subsequent year 

21 of the recapture period, the percentage 

22 which is 10 percentage points less than the 

23 percentage which applied for the previous 

24 year (as determined under this subpara25 graph).’’. 


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1 (i) PUBLIC REPORTING.—Section 47 of such Code, 

2 as amended by subsection (h), is amended by adding at 

3 the end the following new subsection: 

4 ‘‘(f) PUBLIC REPORTING WITH RESPECT TO QUALI5 FIED REHABILITATED BUILDINGS OTHER THAN CER6 TIFIED HISTORIC STRUCTURES.— 

7 ‘‘(1) IN GENERAL.—No credit shall be allowed 

8 under this section with respect to any qualified reha9 bilitated building other than a certified historic 

10 structure unless the taxpayer submits to the Sec11 retary a report (at such time and in such manner 

12 as the Secretary may provide) which includes the in13 formation described in paragraph (2). 

14 ‘‘(2) INFORMATION.—The report described in 

15 paragraph (1) shall include the following: 

16 ‘‘(A) The name of the building and, if ap17 plicable, the name of the project of which such 

18 building is a part. 

19 ‘‘(B) Each of the following with respect to 

20 the location of the building: city, State, zip 

21 code, 2010 census tract (and whether such 

22 tract is metropolitan statistical area). 

23 ‘‘(C) The total cost of the building and, if 

24 applicable, the total cost of the project of which 

25 such building is a part. 


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1 ‘‘(D) The total amount of credit allowed 

2 under this section with respect to such building 

3 and, if applicable, with respect to the project of 

4 which such building is a part. 

5 ‘‘(E) The year the building is placed in 

6 service. 

7 ‘‘(F) The number of housing units in the 

8 building and number of such housing units 

9 which are rent-restricted (within the meaning of 

10 section 42(g)(2)). 

11 ‘‘(G) The primary purpose of the building. 

12 ‘‘(3) REPORTS MADE PUBLICLY AVAILABLE.— 

13 The Secretary shall ensure that reports made under 

14 paragraph (1) are made available to the public.’’. 

15 (j) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to property the construction of 

17 which begins after the date of the enactment of this Act. 

Æ 


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