West Virginia News
Capito cosponsors bill to expand Historic Tax Credit access
The bill would expand Historic Tax Credit access by creating a new 30% transferable credit for small and rural projects and lowering eligibility thresholds.
From Staff Reports
WASHINGTON — U.S. Sen. Shelley Moore Capito, R-W.Va., has cosponsored legislation aimed at expanding access to the federal Historic Tax Credit and increasing eligibility for restoration projects.
The Historic Tax Credit Growth and Opportunity Act of 2025 would build on tax provisions included in the Working Families Tax Cuts Act. Supporters said the bill is designed to encourage economic growth and local investment by making the Historic Tax Credit easier to use for more projects.
“West Virginia has such wonderful history and architecture, and we’ve seen successful investments across our state through the revitalization of historic properties for new businesses or apartments. The HTC brings to life some of our most recognizable structures and we should make it easier for these investments to take place – not harder,” Senator Capito said. “By simplifying the transaction structure of this credit and increasing project eligibility, we will continue to encourage innovative ways to increase community engagement, economic development, and tourism using our historic buildings.”
The legislation would create a new 30% transferable credit for small and rural projects. It also would restore the base credit so it is payable in the same year the renovated property is placed into service.
The bill would lower the project cost threshold required for eligibility by eliminating the basis-adjustment requirement, bringing the Historic Tax Credit more in line with credits such as the Low-Income Housing Tax Credit.
The measure also would expand eligible renovation projects by reducing the rehabilitation investment threshold from 100% to 50% of project expenses. Under the bill, project expenses would need to exceed half of the project’s cost to qualify for the credit.
The legislation also would amend rules for tax-exempt entities, such as health care centers, arts organizations, community services and workforce training providers, to improve access to the credit.
In addition to Capito, the bill is cosponsored by U.S. Sens. Bill Cassidy, R-La.; Susan Collins, R-Maine; Cindy Hyde-Smith, R-Miss.; Jim Banks, R-Ind.; Todd Young, R-Ind.; Mark Warner, D-Va.; Maria Cantwell, D-Wash.; Amy Klobuchar, D-Minn.; Tina Smith, D-Minn.; and Angus King, I-Maine.