I 

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. 

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 ‘‘Historic Tax Credit 

5 Growth and Opportunity Act of 2019’’. 


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1 SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR 

2 CERTAIN SMALL PROJECTS. 

3 (a) IN GENERAL.—Section 47 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(e) SPECIAL RULE REGARDING CERTAIN SMALLER

7 PROJECTS.— 

8 ‘‘(1) IN GENERAL.—In the case of any qualified 

9 rehabilitated building or portion thereof— 

10 ‘‘(A) which is placed in service after the 

11 date of the enactment of this subsection, and 

12 ‘‘(B) which is a smaller project, 

13 subsection (a)(2) shall be applied by substituting ‘30 

14 percent’ for ‘20 percent’. 

15 ‘‘(2) MAXIMUM CREDIT.—The credit deter16 mined under this subsection with respect to any 

17 smaller project for all taxable years shall not exceed 

18 $750,000. 

19 ‘‘(3) SMALLER PROJECT DEFINED.— 

20 ‘‘(A) IN GENERAL.—For purposes of this 

21 subsection, the term ‘smaller project’ means 

22 any qualified rehabilitated building or portion 

23 thereof if— 

24 ‘‘(i) the qualified rehabilitation ex25 penditures taken into account for purposes 

26 of this section (or would have been so 


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1 taken into account if this subsection had 

2 been in effect for all prior periods) with re3 spect to the rehabilitation are not over 

4 $3,750,000, and 

5 ‘‘(ii) no credit was allowed under this 

6 section for either of the 2 prior taxable 

7 years with respect to such building. 

8 ‘‘(B) PROGRESS EXPENDITURES.—Credit 

9 allowable by reason of subsection (d) shall not 

10 be taken into account under subparagraph 

11 (A)(ii).’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to periods after the date of the 

14 enactment of this Act, under rules similar to the rules of 

15 section 48(m) of the Internal Revenue Code of 1986 (as 

16 in effect on the day before the date of the enactment of 

17 the Revenue Reconciliation Act of 1990). 

18 SEC. 3. ALLOWANCE FOR THE TRANSFER OF CREDITS FOR 

19 CERTAIN SMALL PROJECTS. 

20 (a) IN GENERAL.—Section 47(e) of the Internal Rev21 enue Code of 1986, as amended by section 2, is amended 

22 by adding at the end the following new subsection: 

23 ‘‘(4) TRANSFER OF SMALLER PROJECT CRED24 IT.— 


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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B) and such regulations or other guid3 ance as the Secretary may provide, the taxpayer 

4 may transfer all or a portion of the credit allow5 able to the taxpayer under subsection (a) for a 

6 smaller project. 

7 ‘‘(B) CERTIFICATION.— 

8 ‘‘(i) IN GENERAL.—A transfer under 

9 subparagraph (A) shall be accompanied by 

10 a certificate which includes— 

11 ‘‘(I) the certification for the cer12 tified historic structure referred to in 

13 subsection (c)(3), 

14 ‘‘(II) the taxpayer’s name, ad15 dress, tax identification number, date 

16 of project completion, and the amount 

17 of credit being transferred, 

18 ‘‘(III) the transferee’s name, ad19 dress, tax identification number, and 

20 the amount of credit being trans21 ferred, and 

22 ‘‘(IV) such other information as 

23 may be required by the Secretary. 

24 ‘‘(ii) TRANSFERABILITY OF CERTIFI25 CATE.—A certificate issued under this secVerDate Sep 11 2014 01:20 May 30, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2825.IH H2825

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1 tion to a taxpayer shall be transferable to 

2 any other taxpayer. 

3 ‘‘(C) TAX TREATMENT RELATING TO CER4 TIFICATE.— 

5 ‘‘(i) DISALLOWANCE OF DEDUC6 TION.—No deduction shall be allowed for 

7 the amount of consideration paid or in8 curred by the transferee. 

9 ‘‘(ii) ALLOWANCE OF CREDIT.—The 

10 amount of credit transferred under sub11 paragraph (A)— 

12 ‘‘(I) shall not be allowed to the 

13 transferor for any taxable year, and 

14 ‘‘(II) shall be allowable to the 

15 transferee as a credit under this sec16 tion for the taxable year of the trans17 feree in which such credit is trans18 ferred. 

19 ‘‘(iii) EXCLUSION.—Gross income 

20 shall not include any amount received in 

21 connection with the transfer of the certifi22 cate. 

23 ‘‘(D) RECAPTURE AND OTHER SPECIAL

24 RULES.—The taxpayer who claims a credit 

25 under this section by reason of a transfer of an 


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1 amount of credit under subparagraph (A) with 

2 respect to a smaller project shall be treated as 

3 the taxpayer with respect to the smaller project 

4 for purposes of section 50. 

5 ‘‘(E) INFORMATION REPORTING.—The 

6 transferor and the transferee shall each make 

7 such reports regarding the transfer of an 

8 amount of credit under paragraph (A) and con9 taining such information as the Secretary may 

10 require. The reports required by this subsection 

11 shall be filed at such time and in such manner 

12 as may be required by the Secretary. 

13 ‘‘(F) REGULATIONS.—The Secretary shall 

14 prescribe regulations or other guidance to carry 

15 out this paragraph.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to periods after the date of the 

18 enactment of this Act. 

19 SEC. 4. INCREASING THE TYPE OF BUILDINGS ELIGIBLE 

20 FOR REHABILITATION. 

21 (a) IN GENERAL.—Section 47(c)(1)(B)(i)(I) of the 

22 Internal Revenue Code of 1986 is amended by inserting 

23 ‘‘50 percent of’’ before ‘‘the adjusted basis’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

4 SEC. 5. ELIMINATION OF REHABILITATION CREDIT BASIS 

5 ADJUSTMENT. 

6 (a) IN GENERAL.—Section 50(c) of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new paragraph: 

9 ‘‘(6) EXCEPTION FOR REHABILITATION CRED10 IT.—In the case of the rehabilitation credit, para11 graph (1) shall not apply.’’. 

12 (b) TREATMENT IN CASE OF CREDIT ALLOWED TO

13 LESSEE.—Section 50(d) of such Code is amended by add14 ing at the end the following: ‘‘In the case of the rehabilita15 tion credit, paragraph (5)(B) of the section 48(d) referred 

16 to in paragraph (5) of this subsection shall not apply.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to property placed in service after 

19 the date of the enactment of this Act. 

20 SEC. 6. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT 

21 USE PROPERTY. 

22 (a) IN GENERAL.—Section 47(c)(2)(B)(v) of the In23 ternal Revenue Code of 1986 is amended by adding at the 

24 end the following new subclause: 


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1 ‘‘(III) DISQUALIFIED LEASE

2 RULES TO APPLY ONLY IN CASE OF

3 GOVERNMENT ENTITY.—For purposes 

4 of subclause (I), except in the case of 

5 a tax-exempt entity described in sec6 tion 168(h)(2)(A)(i), the determina7 tion of whether property is tax-exempt 

8 use property shall be made under sec9 tion 168(h) without regard to whether 

10 the property is leased in a disqualified 

11 lease (as defined in section 

12 168(h)(1)(B)(ii)).’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to property placed in service after 

15 the date of the enactment of this Act. 

Æ 


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