Historic Tax Credit Growth and Opportunity Act of 2019

II 116TH CONGRESS 1ST SESSION S. 2615 To amend the Internal Revenue Code of 1986 to improve the historic rehabilitation tax credit, and for other purposes. IN THE SENATE OF THE UNITED STATES OCTOBER 16, 2019 Mr. CASSIDY (for himself, Mr. CARDIN, Ms. COLLINS, and Ms. CANTWELL) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to improve the historic rehabilitation tax credit, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Historic Tax Credit 4 Growth and Opportunity Act of 2019’’. 5 SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR 6 CERTAIN SMALL PROJECTS. 7 (a) IN GENERAL.—Section 47 of the Internal Rev- 8 enue Code of 1986 is amended by adding at the end the 9 following new subsection: 10 VerDate Sep 11 2014 18:31 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2615.IS S2615 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2615 IS ‘‘(e) SPECIAL RULE REGARDING CERTAIN SMALL 1 PROJECTS.— 2 ‘‘(1) IN GENERAL.—In the case of any qualified 3 rehabilitated building or portion thereof— 4 ‘‘(A) which is placed in service after the 5 date of the enactment of this subsection, and 6 ‘‘(B) which is a small project, 7 subsection (a)(2) shall be applied by substituting ‘30 8 percent’ for ‘20 percent’. 9 ‘‘(2) MAXIMUM CREDIT.—The credit under this 10 section (after application of this subsection) with re- 11 spect to any project for all taxable years shall not 12 exceed $750,000. 13 ‘‘(3) SMALL PROJECT.— 14 ‘‘(A) IN GENERAL.—For purposes of this 15 subsection, the term ‘small project’ means any 16 certified historic structure or portion thereof 17 if— 18 ‘‘(i) the total qualified rehabilitation 19 expenditures taken into account for pur- 20 poses of this section with respect to the re- 21 habilitation do not exceed $3,750,000, and 22 ‘‘(ii) no credit was allowed under this 23 section for either of the two immediately 24 VerDate Sep 11 2014 18:31 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2615.IS S2615 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2615 IS preceding taxable years with respect to 1 such building. 2 ‘‘(B) PROGRESS EXPENDITURES.—Credit 3 allowable by reason of subsection (d) shall not 4 be taken into account under subparagraph 5 (A)(ii).’’. 6 (b) EFFECTIVE DATE.—The amendment made by 7 this section shall apply to periods after the date of the 8 enactment of this Act, under rules similar to the rules of 9 section 48(m) of the Internal Revenue Code of 1986 (as 10 in effect on the day before the date of the enactment of 11 the Revenue Reconciliation Act of 1990). 12 SEC. 3. INCREASING THE TYPE OF BUILDINGS ELIGIBLE 13 FOR REHABILITATION. 14 (a) IN GENERAL.—Section 47(c)(1)(B)(i)(I) of the 15 Internal Revenue Code of 1986 is amended by inserting 16 ‘‘50 percent of’’ before ‘‘the adjusted basis’’. 17 (b) EFFECTIVE DATE.—The amendment made by 18 subsection (a) shall apply to taxable years beginning after 19 December 31, 2018. 20 SEC. 4. ELIMINATION OF REHABILITATION CREDIT BASIS 21 ADJUSTMENT. 22 (a) IN GENERAL.—Section 50(c) of the Internal Rev- 23 enue Code of 1986 is amended by adding at the end the 24 following new paragraph: 25 VerDate Sep 11 2014 18:31 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2615.IS S2615 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2615 IS ‘‘(6) EXCEPTION FOR REHABILITATION CRED- 1 IT.—In the case of the rehabilitation credit, para- 2 graph (1) shall not apply.’’. 3 (b) TREATMENT IN CASE OF CREDIT ALLOWED TO 4 LESSEE.—Section 50(d) of such Code is amended by add- 5 ing at the end the following: ‘‘In the case of the rehabilita- 6 tion credit, paragraph (5)(B) of the section 48(d) referred 7 to in paragraph (5) of this subsection shall not apply.’’. 8 (c) EFFECTIVE DATE.—The amendments made by 9 this section shall apply to property placed in service after 10 the date of the enactment of this Act. 11 SEC. 5. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT 12 USE PROPERTY. 13 (a) IN GENERAL.—Section 47(c)(2)(B)(v) of the In- 14 ternal Revenue Code of 1986 is amended by adding at the 15 end the following new subclause: 16 ‘‘(III) DISQUALIFIED LEASE 17 RULES TO APPLY ONLY IN CASE OF 18 GOVERNMENT ENTITY.—For purposes 19 of subclause (I), except in the case of 20 a tax-exempt entity described in sec- 21 tion 168(h)(2)(A)(i), the determina- 22 tion of whether property is tax-exempt 23 use property shall be made under sec- 24 tion 168(h) without regard to whether 25 VerDate Sep 11 2014 18:31 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2615.IS S2615 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2615 IS the property is leased in a disqualified 1 lease (as defined in section 2 168(h)(1)(B)(ii)).’’. 3 (b) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to property placed in service after 5 the date of the enactment of this Act. 6 Æ VerDate Sep 11 2014 18:31 Oct 21, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S2615.IS S2615 pamtmann on DSKBC07HB2PROD with BILLS