In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Historic Tax Credit Improvement Act
of 2015''.

SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL
PROJECTS.

(a) In General.--Section 47 of the Internal Revenue Code of 1986
(relating to rehabilitation credit) is amended by adding at the end the
following new subsection:
''(e) Special Rule Regarding Certain Smaller Projects.--
''(1) In general.--In the case of any qualified
rehabilitated building or portion thereof--
''(A) which is placed in service after the date of
the enactment of this subsection, and
''(B) which is a smaller project,
subsection (a)(2) shall be applied by substituting '30 percent'
for '20 percent'.
''(2) Maximum credit.--The credit determined under this
subsection with respect to any smaller project for all taxable
years shall not exceed $750,000.
''(3) Smaller project defined.--
''(A) In general.--For purposes of this subsection,
the term 'smaller project' means any qualified
rehabilitated building or portion thereof if--
''(i) the qualified rehabilitation
expenditures taken into account for purposes of
this section (or would have been so taken into
account if this subsection had been in effect
for all prior periods) with respect to the
rehabilitation are not over $3,750,000, and
''(ii) no credit was allowed under this
section for either of the 2 prior taxable years
with respect to such building.
''(B) Progress expenditures.--Credit allowable by
reason of subsection (d) shall not be taken into
account under subparagraph (A)(ii).''.
(b) Effective Date.--The amendment made by this section shall apply
to periods after the date of the enactment of this Act, under rules
similar to the rules of section 48(m) of the Internal Revenue Code of
1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).

SEC. 3. ALLOWANCE FOR THE TRANSFER OF CREDITS FOR CERTAIN SMALL
PROJECTS.

(a) In General.--Section 47(e) of the Internal Revenue Code of
1986, as amended by section 2, is amended by adding at the end the
following new subsection:
''(4) Transfer of smaller project credit.--
''(A) In general.--Subject to subparagraph (B) and
such regulations or other guidance as the Secretary may
provide, the taxpayer may transfer all or a portion of
the credit allowable to the taxpayer under subsection
(a) for a smaller project.
''(B) Certification.--
''(i) In general.--A transfer under
subparagraph (A) 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 section to a
taxpayer shall be transferable to any other
taxpayer, except that a certificate may not be
transferred more than once.
''(C) 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 subparagraph (A)--
''(I) shall not be allowed to the
transferor for any taxable year, and
''(II) shall be allowable to the
transferee as a credit under this
section for the taxable year of the
transferee in which such credit is
transferred.
''(D) Recapture and other special rules.--The
taxpayer who claims a credit under this section by
reason of a transfer of an amount of credit under
subparagraph (A) with respect to a smaller project
shall be treated as the taxpayer with respect to the
smaller project for purposes of section 50.
''(E) Information reporting.--The transferor and
the transferee shall each make such reports regarding
the transfer of an amount of credit under paragraph (A)
and containing such information as the Secretary may
require. The reports required by this subsection shall
be filed at such time and in such manner as may be
required by the Secretary.
''(F) Regulations.--The Secretary shall prescribe
regulations or other guidance to carry out this
paragraph.''.
(b) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act.

SEC. 4. INCREASING THE TYPE OF BUILDINGS ELIGIBLE FOR REHABILITATION.

(a) In General.--Section 47(c)(1)(C)(i)(I) of the Internal Revenue
Code of 1986 is amended by inserting ''50 percent of'' before ''the
adjusted basis''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 5. REDUCTION OF BASIS ADJUSTMENT FOR REHABILITATION PROPERTY.

(a) In General.--Section 50(c) of the Internal Revenue Code of 1986
is amended by adding at the end the following:
''(6) Special rule relating to the rehabilitation credit.--
In the case of any rehabilitation credit--
''(A) only 50 percent of such credit shall be taken
into account under paragraph (1), and
''(B) only 50 percent of any recapture amount
attributable to such credit shall be taken into account
under paragraph (2).''.
(b) Coordination With Basis Adjustment.--Section 50 of such Code is
amended by adding at the end the following:
''(e) Coordination With Basis Adjustment.--In applying the
provisions of former section 48(d)(5)(B) pursuant to subsection (d)(5)
to a lease of property eligible for the rehabilitation tax credit, the
lessee of such property shall include ratably in gross income over the
shortest recovery period that could be applicable under section 168
with respect to such property an amount equal to 50 percent of the
amount of the credit allowable under section 38 to the lessee with
respect to such property.''.

SEC. 6. SPECIAL RULES FOR DISPOSITIONS OF STATE HISTORIC TAX CREDITS.

(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by inserting after section 139E the
following new section:

''SEC. 139F. DISPOSITIONS OF STATE HISTORIC TAX CREDITS.

''(a) Exclusion From Income; Basis Reduction.--
''(1) In general.--In the case of a taxpayer who receives a
State historic tax credit and transfers such credit by sale,
allocation, or otherwise, or receives a refund of all or a
portion of such credit--
''(A) no portion of the net proceeds of such
allocation, disposition, or refund of such credit shall
constitute income to such taxpayer under section 61(a),
and
''(B) the taxpayer's basis in the property with
respect to which the State historic tax credit is
allowed shall be reduced as determined under paragraph
(2).
''(2) Determination of reduction in basis.--The reduction
in basis under paragraph (1) shall be applied--
''(A) first, against the basis in the land,
''(B) second, against so much of the basis of any
building or interest therein as was not treated as a
qualified rehabilitation expenditure by reason of
clause (ii) or (iii) of section 47(c)(2)(B), and
''(C) third, against the remaining basis in the
property.
''(D) Adjustment in basis of interest in
partnership or s corporation.--The adjusted basis of--
''(i) a partner's interest in a
partnership, or
''(ii) stock in an S corporation (as
defined in section 1361(a)(1)), shall be
appropriately adjusted to take into account
adjustments made under this subsection in the
basis of property held by the partnership or S
corporation (if any).
''(b) Election To Include in Income.--
''(1) In general.--In the case of a taxpayer who elects to
have this subsection apply--
''(A) the net proceeds of the allocation,
disposition, or refund described in subsection (a)
received by such taxpayer shall constitute income to
such taxpayer under section 61(a), and
''(B) subsection (a)(1)(B) shall not apply.
''(2) Making of election.--An election under this
subsection shall be made at such time and in such manner as the
Secretary may by regulation prescribe. Such election shall
apply for the taxable year for which it is made and for all
subsequent taxable years and may be revoked only with the
consent of the Secretary of the Treasury.
''(c) Effect on Qualified Rehabilitation Expenditures and
Rehabilitation Credits.--For purposes of determining the rehabilitation
credit allowable to a taxpayer under section 47, the transfer or
allocation of State historic tax credits with respect to any property
by a taxpayer shall not affect or reduce the amount of qualified
rehabilitation expenditures (as defined in section 47(c)(2)) incurred
in connection with such property, nor shall such transfer or
disposition, nor any basis adjustments under subsection (a), be treated
as an early disposition of investment credit property for purposes of
the recapture provisions of section 50, notwithstanding any reduction
in basis pursuant to paragraph (a)(2)(C).
''(d) State Historic Tax Credits Defined.--For purposes of this
section, the term 'State historic tax credit' means any credit against
State or local tax liabilities which--
''(1) is allowable under the laws of any State or political
subdivision thereof to a taxpayer with respect to expenditures
made for the rehabilitation of property identified by such
laws, and
''(2) can be allocated, disposed, or refunded under such
laws.''.
(b) Clerical Amendment.--The table of sections for such part III is
amended by inserting after the item relating to section 139E the
following new item:

''Sec. 139F. Dispositions of State historic tax credits.''.
(c) Effective Date.--This section shall apply to transfers or
dispositions made, or refunds received, after the date of the enactment
of this Act.

SEC. 7. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.

(a) In General.--Section 47(c)(2)(B)(v)(I) of the Internal Revenue
Code of 1986 (relating to tax-exempt use property) is amended by
inserting ''and subclauses (I), (II), and (III) of section
168(h)(1)(B)(ii) shall not apply'' after ''thereof''.
(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.

SEC. 8. ELIMINATING FUNCTIONALLY RELATED PROPERTIES.

(a) In General.--Section 47 of the Internal Revenue Code of 1986
(relating to rehabilitation credit), as amended by sections 2 and 3, is
amended by adding at the end the following new subsection:
''(g) Related Buildings.--Buildings that are functionally related (
as defined in Part 67.6(b)(4) of title 36, Code of Federal Regulations)
shall be treated as separate certified historic structures for purposes
of the credit allowed under this section.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to any application to the National Park Service received after
the date of the enactment of this Act.
A:
Historic Tax Credit Improvement Act of 2015 This bill amends the Internal Revenue Code, with respect to the tax credit for the rehabilitation of buildings and historic structures, to: (1) allow an increased 30% credit, up to $750,000, for projects with rehabilitation expenditures not exceeding $3.75 million, for which no credit was allowed in either of the 2 prior taxable years (smaller projects); (2) allow the transfer of tax credit amounts for smaller projects; (3) treat a building as substantially rehabilitated if rehabilitation expenditures exceed the greater of 50% of the adjusted basis of the building or $5,000 (currently, the greater of the adjusted basis of the building or $5,000); (4) exempt from tax the proceeds of a state historic tax; and (5) set forth special rules for the tax treatment of tax-exempt use property and functionally-related historic structures.