[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 425 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 425
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
February 16, 2017
Mr. Cardin (for himself, Ms. Collins, Mr. Cochran, Mrs. Gillibrand, Mr.
Wicker, and Mr. Leahy) 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Historic Tax Credit Improvement Act
of 2017''.
SEC. 2. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL
PROJECTS.
(a) In General.--Section 47 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(e) Special Rule Regarding Certain Small 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 small project,
subsection (a)(2) shall be applied by substituting `30 percent'
for `20 percent'.
``(2) Maximum credit.--The credit under this section (after
application of this subsection) with respect to any project for
all taxable years shall not exceed $750,000.
``(3) Small project.--
``(A) In general.--For purposes of this subsection,
the term `small project' means any certified historic
structure or portion thereof if--
``(i) the total qualified rehabilitation
expenditures taken into account for purposes of
this section with respect to the rehabilitation
do not exceed $3,750,000, and
``(ii) no credit was allowed under this
section for either of the two immediately
preceding 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 added by section 2, is amended by adding at the end the
following new paragraph:
``(4) Transfer of small project credit.--
``(A) In general.--Subject to subparagraph (B) and
such regulations or other guidance as the Secretary may
provide, the taxpayer may transfer to any other
taxpayer all or a portion of the credit allowable to
the taxpayer under subsection (a) for a small project.
``(B) Certification.--A transfer under subparagraph
(A) shall be accompanied by a certificate which
includes--
``(i) the certification for the certified
historic structure,
``(ii) the taxpayer's name, address, and
tax identification number,
``(iii) the transferee's name, address, and
tax identification number,
``(iv) the date of project completion and
the amount of credit being transferred, and
``(v) such other information as may be
required by the Secretary.
``(C) Credit may only be transferred once.--A
credit transferred under subparagraph (A) is not
transferable by the transferee to any other taxpayer.
``(D) Tax treatment of transfer.--
``(i) Disallowance of deduction.--No
deduction shall be allowed for any amount of
consideration paid or incurred by the
transferee in return for the transfer of any
credit under this paragraph.
``(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.
``(E) Recapture and other special rules.--For
purposes of section 50, the transferee of a credit with
respect to a smaller project under this paragraph shall
be treated as the taxpayer with respect to the smaller
project.
``(F) Information reporting.--The transferor and
the transferee shall each make such reports regarding
the transfer of an amount of credit under subparagraph
(A), and containing such information, as the Secretary
may require. The reports required by this subparagraph
shall be filed at such time and in such manner as may
be required by the Secretary.''.
(b) Effective Date.--The amendment made by this section shall apply
to periods after December 31, 2016.
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 December 31, 2016.
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.--Subsection (d) of section
50 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new sentence: ``For purposes of paragraph (5), in
applying the provisions of section 48(d)(5)(B) (as so in effect) to a
lease of property eligible for the credit under section 47, gross
income of the lessee of such property shall include, ratably over the
shortest recovery period applicable to such property under section 168,
an amount equal to 50 percent of the amount of the credit allowable
under section 38 to such lessee with respect to such property.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 6. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.
(a) In General.--Section 47(c)(2)(B)(v)(I) of the Internal Revenue
Code of 1986 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.
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