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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Revitalizing Econo-
mies, Housing, And Businesses Act of 2021’’ or as the 
‘‘REHAB Act of 2021’’. 
SEC. 2. MODIFICATION OF REHABILITATION CREDIT. 
(a) REINSTATEMENT
OF CREDIT
FOR QUALIFIED 
REHABILITATED BUILDINGS.— 
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(1) IN GENERAL.—Subsection (a) of section 47 
of the Internal Revenue Code of 1986 is amended to 
read as follows: 
‘‘(a) DETERMINATION OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 46, 
the rehabilitation credit for any taxable year is the 
sum of— 
‘‘(A) in the case of any qualified rehabili-
tated building other than a certified historic 
structure which is placed in service during such 
taxable year, 10 percent of the qualified reha-
bilitation expenditures with respect to such 
building, and 
‘‘(B) in the case of any qualified rehabili-
tated building which is a certified historic struc-
ture which is placed in service during such tax-
able year or any of the 4 immediately preceding 
taxable years, the ratable share for such taxable 
year. 
‘‘(2) RATABLE SHARE.—For purposes of para-
graph (1)(B), the ratable share for any taxable year 
is an amount equal to 20 percent of the qualified re-
habilitation expenditures with respect to the certified 
historic structure, as allocated ratably to each of the 
5 years to which paragraph (1)(B) applies.’’. 
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(2) CONFORMING AMENDMENTS.— 
(A) Section 47(c) of such Code is amend-
ed— 
(i) in paragraph (1)— 
(I) in subparagraph (A), by 
amending clause (iii) to read as fol-
lows: 
‘‘(iii) in the case of any building other 
than a certified historic structure, in the 
rehabilitation process— 
‘‘(I) 50 percent or more of the 
existing external walls of such build-
ing are retained in place as external 
walls, 
‘‘(II) 75 percent or more of the 
existing external walls of such build-
ing are retained in place as internal or 
external walls, and 
‘‘(III) 75 percent or more of the 
existing internal structural framework 
of such building is retained in place, 
and’’, and 
(II) by redesignating subpara-
graphs (B) and (C) as subparagraphs 
(C) and (D), respectively, and by in-
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serting after subparagraph (A) the 
following new subparagraph: 
‘‘(B) BUILDING MUST BE FIRST PLACED 
IN SERVICE BEFORE 1936.—In the case of a 
building other than a certified historic struc-
ture, a building shall not be a qualified rehabili-
tated building unless the building was first 
placed in service before 1936.’’, and 
(ii) in paragraph (2)(B), by amending 
clause (iv) to read as follows: 
‘‘(iv) CERTIFIED
HISTORIC
STRUC-
TURE, ETC.—Any expenditure attributable 
to the rehabilitation of a certified historic 
structure or a building in a registered his-
toric district, unless the rehabilitation is a 
certified rehabilitation (within the meaning 
of subparagraph (C)). The preceding sen-
tence shall not apply to a building in a reg-
istered historic district if— 
‘‘(I) such building was not a cer-
tified historic structure, 
‘‘(II) the Secretary of the Inte-
rior certified to the Secretary that 
such building is not of historic signifi-
cance to the district, and 
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striking ‘‘1936’’ and inserting ‘‘the calendar year which 
is 50 years prior to the calendar year in which the building 
is placed in service (within the meaning of subsection 
(b)(1))’’. 
(d) REQUIREMENT THAT BUILDINGS OTHER CER-
TIFIED HISTORIC STRUCTURES MUST BE CLOSE TO PUB-
LIC TRANSPORTATION CENTERS.—Section 47(c)(1) of 
such Code, as amended by subsection (a), is amended by 
redesignating subparagraphs (C) and (D) as subpara-
graphs (D) and (E), respectively, and by inserting after 
subparagraph (B) the following new subparagraph: 
‘‘(C) BUILDING MUST BE CLOSE TO PUB-
LIC TRANSPORTATION CENTER.— 
‘‘(i) IN GENERAL.—In the case of a 
building other than a certified historic 
structure, a building shall not be a quali-
fied rehabilitated building unless the build-
ing is not further than one-half mile from 
at least one of the following: 
‘‘(I) A location which provides 
passenger boarding on a fixed guide-
way (as defined in section 5302(7) of 
title 49, United States Code), com-
muter rail passenger transportation 
(as defined in section 24102(3) of 
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title 49, United States Code), or 
intercity rail passenger transportation 
(as defined in section 24102(4) of 
title 49, United States Code). 
‘‘(II) A planned site for a loca-
tion described in subclause (I) if the 
Secretary 
of 
Transportation 
has 
issued a full funding grant agreement 
with respect to such location under 
section 5309(k)(2) of title 49, United 
States Code. 
‘‘(ii) IDENTIFICATION OF QUALIFIED 
AREAS.—The Secretary, in consultation 
with the Secretary of Transportation, shall 
identify areas which are described in clause 
(i).’’. 
(e) ELIMINATION OF CERTAIN LODGING RESTRIC-
TIONS ON BUILDINGS OTHER THAN CERTIFIED HISTORIC 
STRUCTURES.—Section 50(b)(2)(C) of such Code is 
amended by striking ‘‘certified historic structure’’ and in-
serting ‘‘qualified rehabilitated building’’. 
(f) REQUIREMENT THAT BUILDINGS THAT ARE NOT 
CERTIFIED HISTORIC STRUCTURES AND NOT IN A REG-
ISTERED HISTORIC DISTRICT RECEIVE CERTIFICATION 
OF STATUS.—Section 47(c)(1) of such Code, as amended 
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by subsections (a) and (d), is amended by redesignating 
subparagraphs (D) and (E) as subparagraphs (E) and 
(F), respectively, and by inserting after subparagraph (C) 
the following new subparagraph: 
‘‘(D) BUILDINGS
THAT
ARE
NOT
CER-
TIFIED
HISTORIC
STRUCTURES
AND
NOT
IN 
REGISTERED
HISTORIC
DISTRICT
MUST
RE-
CEIVE CERTIFICATION OF STATUS.— 
‘‘(i) IN GENERAL.—In the case of a 
building which is neither a certified his-
toric structure nor located in a registered 
historic district, such building shall not be 
a qualified rehabilitated building unless the 
Secretary of the Interior certifies to the 
Secretary that such building is— 
‘‘(I) not a certified historic struc-
ture, and 
‘‘(II) not in a registered historic 
district. 
‘‘(ii) DETERMINATIONS BY NATIONAL 
PARK SERVICE.—To the maximum extent 
practicable, the Secretary of the Interior 
shall make certifications under clause (i) 
within 30 days of the receipt of an applica-
tion for such certification.’’. 
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(g) CREDIT
FOR
CERTAIN
RELATED
EXPENDI-
TURES.— 
(1) CREDIT FOR CERTAIN EXPENDITURES FOR 
PUBLIC
INFRASTRUCTURE.—Section 47(c)(2) of 
such Code is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(E) TREATMENT OF CERTAIN EXPENDI-
TURES FOR PUBLIC INFRASTRUCTURE.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified rehabilitated building, expendi-
tures for qualified public infrastructure (or 
improvements thereto) shall be treated for 
purposes of this section as qualified reha-
bilitation expenditures with respect to such 
building if providing such qualified public 
infrastructure is related to such building 
and is required by any State or local gov-
ernment. 
‘‘(ii) LIMITATION.—The amount treat-
ed as qualified rehabilitation expenditures 
with respect to any building under clause 
(i) shall not exceed 25 percent of the quali-
fied rehabilitation expenditures with re-
spect to such building (determined after 
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the application of clause (i) and subpara-
graph (F)). 
‘‘(iii) BONUS
CREDIT
AMOUNT.—In 
the case of any amount treated as qualified 
rehabilitation expenditures under clause 
(i), subsection (a)(1) shall be applied by 
substituting ‘25 percent’ for ‘15 percent’. 
‘‘(iv) 
QUALIFIED
PUBLIC
INFRA-
STRUCTURE.—For purposes of this sub-
paragraph, the term ‘qualified public infra-
structure’ means water and sewer lines, 
electrical 
lines 
and 
equipment, 
tele-
communications lines and equipment, and 
road and sidewalks, which are located in 
the public right of way and are not owned 
by the taxpayer.’’. 
(2) CREDIT
FOR
EXPANSION
AND
ADJACENT 
BUILDINGS WITH RESPECT TO QUALIFIED REHABILI-
TATED
BUILDINGS
OTHER
THAN
CERTIFIED
HIS-
TORIC
STRUCTURES.—Section 47(c)(2) of such 
Code, as amended by paragraph (1), is amended by 
adding at the end the following new subparagraph: 
‘‘(F) TREATMENT
OF
BUILDING
EXPAN-
SIONS
AND
CERTAIN
ADJACENT
BUILDINGS 
WITH RESPECT TO QUALIFIED REHABILITATED 
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BUILDINGS OTHER THAN CERTIFIED HISTORIC 
STRUCTURES.— 
‘‘(i) IN GENERAL.—In the case any 
qualified rehabilitated building other than 
a certified historic structure— 
‘‘(I) clause (iii) of subparagraph 
(B) shall not apply, and 
‘‘(II) amounts described in sub-
paragraph (A)(i) which are in connec-
tion with the rehabilitation or con-
struction of a qualified adjacent build-
ing shall be treated as qualified reha-
bilitation expenditures with respect to 
such qualified rehabilitated building. 
‘‘(ii) LIMITATION.—The amount treat-
ed as qualified rehabilitation expenditures 
with respect to any qualified rehabilitated 
building under clause (i) shall not exceed 
100 percent of the qualified rehabilitation 
expenditures with respect to such building 
(determined without regard to clause (i) 
and subparagraph (E)). 
‘‘(iii) QUALIFIED
ADJACENT
BUILD-
ING.—For purposes of this subparagraph, 
the term ‘qualified adjacent building’ 
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means, with respect to any qualified reha-
bilitated building, any building if such 
building and such qualified rehabilitated 
building are both on the same block.’’. 
(3) EXPENDITURES RELATED TO PUBLIC IN-
FRASTRUCTURE, ADJACENT BUILDINGS, AND BUILD-
ING EXPANSIONS DISREGARDED IN DETERMINING IF 
REHABILITATION
IS
SUBSTANTIAL.—Section 
47(c)(1)(E), as redesignated by subsections (a), (d), 
and (f), is amended by adding at the end the fol-
lowing new clause: 
‘‘(iv) CERTAIN
EXPENDITURES
DIS-
REGARDED.—Amounts which are otherwise 
treated as qualified rehabilitation expendi-
tures by reason of subparagraph (E) or 
(F) of paragraph (2) shall not be treated 
as qualified rehabilitation expenditures for 
purposes of this subparagraph.’’. 
(h) BONUS CREDIT FOR RENT-RESTRICTED HOUS-
ING UNITS.—Section 47 of such Code is amended by add-
ing at the end the following new subsection: 
‘‘(e) BONUS CREDIT FOR RENT-RESTRICTED HOUS-
ING UNITS.— 
‘‘(1) IN GENERAL.—Subsection (a)(1) shall be 
applied by substituting ‘25 percent’ for ‘15 percent’ 
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with respect to so much of the qualified rehabilita-
tion expenditures (determined without regard to sub-
section (c)(2)(E)) with respect to any qualified reha-
bilitated building as are properly allocable to resi-
dential units which are— 
‘‘(A) rent-restricted (within the meaning of 
section 42(g)(2)), and 
‘‘(B) occupied by individuals whose income 
is 100 percent or less of area median gross in-
come (within the meaning of section 42(g)(1)). 
‘‘(2) FAILURE TO MAINTAIN RENT-RESTRICTION 
SUBJECT TO RECAPTURE.—In the case of any fail-
ure to maintain any residential unit taken into ac-
count under paragraph (1) as a residential unit de-
scribed in such paragraph during the recapture pe-
riod, section 50(a) shall apply as though the quali-
fied rehabilitated building ceased to be investment 
credit property except that the recapture period and 
recapture percentage shall be determined under 
paragraph (3) and in determining the increase in tax 
under such section in lieu of reducing the credit de-
termined under this section to zero such credit shall 
be determined without regard to paragraph (1). The 
application of section 50(a) with respect to a build-
ing as described in this paragraph shall not prevent 
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the reapplication of such section to such building if 
such building is disposed of or otherwise ceases to 
be investment credit property and the tax imposed 
under such section by reason of such reapplication 
shall be reduced by the tax previously imposed as 
described in this paragraph. 
‘‘(3) RECAPTURE
PERIOD; RECAPTURE
PER-
CENTAGE.—For purposes of this subsection— 
‘‘(A) RECAPTURE PERIOD.—The term ‘re-
capture period’ means the 10-year period begin-
ning on the date the building is placed in serv-
ice. 
‘‘(B) 
RECAPTURE
PERCENTAGE.—The 
term ‘recapture percentage’ means— 
‘‘(i) in the case of a failure described 
in paragraph (2) that occurs during the 
first year of the recapture period, 100 per-
cent, and 
‘‘(ii) in the case of such a failure 
which occurs during any subsequent year 
of the recapture period, the percentage 
which is 10 percentage points less than the 
percentage which applied for the previous 
year (as determined under this subpara-
graph).’’. 
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(i) PUBLIC REPORTING.—Section 47 of such Code, 
as amended by subsection (h), is amended by adding at 
the end the following new subsection: 
‘‘(f) PUBLIC REPORTING WITH RESPECT TO QUALI-
FIED REHABILITATED BUILDINGS OTHER THAN CER-
TIFIED HISTORIC STRUCTURES.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
under this section with respect to any qualified reha-
bilitated building other than a certified historic 
structure unless the taxpayer submits to the Sec-
retary a report (at such time and in such manner 
as the Secretary may provide) which includes the in-
formation described in paragraph (2). 
‘‘(2) INFORMATION.—The report described in 
paragraph (1) shall include the following: 
‘‘(A) The name of the building and, if ap-
plicable, the name of the project of which such 
building is a part. 
‘‘(B) Each of the following with respect to 
the location of the building: city, State, zip 
code, 2010 census tract (and whether such 
tract is metropolitan statistical area). 
‘‘(C) The total cost of the building and, if 
applicable, the total cost of the project of which 
such building is a part. 
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‘‘(D) The total amount of credit allowed 
under this section with respect to such building 
and, if applicable, with respect to the project of 
which such building is a part. 
‘‘(E) The year the building is placed in 
service. 
‘‘(F) The number of housing units in the 
building and number of such housing units 
which are rent-restricted (within the meaning of 
section 42(g)(2)). 
‘‘(G) The primary purpose of the building. 
‘‘(3) REPORTS MADE PUBLICLY AVAILABLE.— 
The Secretary shall ensure that reports made under 
paragraph (1) are made available to the public.’’. 
(j) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property the construction of 
which begins after the date of the enactment of this Act. 
Æ 
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