Representative Mike Kelly (R-PA) introduced this week HR 3846, also known as the Historic Tax Credit Improvement Act of 2015. The Historic Tax Credit Improvement Act of 2015 proposes changes to the federal Historic Tax Credit to further encourage reuse and redevelopment in small, midsize and rural communities. The bill will increase the credit from 20 to 30 percent for projects with rehabilitation expenses of less than $2.5 million, which will help inject new private investment into smaller and more rural communities. Other improvements include simplifying the process for the transfer of historic tax credits to investors for projects under $2.5 million. The bill provisions would be the first major changes to the federal Historic Tax Credit since the 1986 tax bill. The bill at introduction has bipartisan support with 9 original cosponsors.
The new legislation adds several provisions and eliminates others from the Creating American Prosperity through Preservation (CAPP) Act that was introduced in previous sessions.