I 
114TH CONGRESS 
2D SESSION 
H. R. 6267 
To amend the Internal Revenue Code of 1986 to increase the rehabilitation 
credit for commercial buildings and to provide a rehabilitation credit 
for principal residences. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 28, 2016 
Mr. MCKINLEY (for himself and Mr. TONKO) 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 increase 
the rehabilitation credit for commercial buildings and 
to provide a rehabilitation credit for principal residences. 
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 ‘‘Preserving America’s 
Downtowns and Heritage Act of 2016’’. 
SEC. 2. INCREASED REHABILITATION CREDIT FOR COM-
MERCIAL BUILDINGS. 
(a) BUILDINGS OTHER THAN CERTIFIED HISTORIC 
STRUCTURES.—Paragraph (1) of section 47(a) of the In-
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ternal Revenue Code of 1986 (relating to rehabilitation 
credit) is amended by striking ‘‘10 percent’’ and inserting 
‘‘12.5 percent’’. 
(b) CERTIFIED HISTORIC STRUCTURES.—Paragraph 
(2) of such section is amended by striking ‘‘20 percent’’ 
and inserting ‘‘25 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to rehabilitations the 
physical work on which begins after the date of enactment 
of this Act. 
SEC. 3. REHABILITATION CREDIT FOR HISTORIC PRIN-
CIPAL RESIDENCES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. REHABILITATION OF HISTORIC PRINCIPAL RESI-
DENCES. 
‘‘(a) GENERAL RULE.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
20 percent of the qualified rehabilitation expenditures 
made by the taxpayer with respect to a qualified historic 
home. 
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‘‘(b) QUALIFIED REHABILITATION EXPENDITURE.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified reha-
bilitation expenditure’ means any amount properly 
chargeable to capital account— 
‘‘(A) in connection with the certified reha-
bilitation of a qualified historic home, and 
‘‘(B) for property for which depreciation 
would be allowable under section 168 if the 
qualified historic home were used in a trade or 
business. 
‘‘(2) 
CERTAIN
EXPENDITURES
NOT
IN-
CLUDED.—Rules similar to the rules of clauses (ii) 
and (iii) of section 47(c)(2)(B) shall apply. 
‘‘(3) MIXED USE OR MULTIFAMILY BUILDING.— 
If only a portion of a building is used as the prin-
cipal residence of the taxpayer, only qualified reha-
bilitation expenditures which are properly allocable 
to such portion shall be taken into account under 
this section. 
‘‘(c) CERTIFIED REHABILITATION.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘certified reha-
bilitation’ has the meaning given such term by sec-
tion 47(c)(2)(C). 
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‘‘(2) APPROVED STATE PROGRAM.—The term 
‘certified rehabilitation’ includes a certification made 
by— 
‘‘(A) a State Historic Preservation Officer 
who administers a State Historic Preservation 
Program approved by the Secretary of the Inte-
rior pursuant to section 101(b)(1) of the Na-
tional Historic Preservation Act, or 
‘‘(B) a local government, certified pursuant 
to section 101(c)(1) of the National Historic 
Preservation Act and authorized by a State 
Historic Preservation Officer, or the Secretary 
of the Interior where there is no approved State 
program, subject to such terms and conditions 
as may be specified by the Secretary of the In-
terior for the rehabilitation of buildings within 
the jurisdiction of such officer (or local govern-
ment) for purposes of this section. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED
HISTORIC
HOME.—The term 
‘qualified historic home’ means a certified historic 
structure— 
‘‘(A) which has been substantially rehabili-
tated, and 
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