,,ii #aaeth ,,congress #ast ,session ,s4 #dbe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #af1 #bjag,mr4 ,cardin 7for himself1 ,ms4 ,collins1 ,mr4 ,cochran1 ,mrs4 ,gillibrand1 ,mr4 ,wicker1 and ,mr4 ,leahy7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to improve the historic rehabilitation tax credit1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,historic ,tax ,credit ,improvement ,act of #bjag4 #b4 ,increase in the rehabilitation credit for certain small projects 7a7 ,in general ,section #dg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7e7 ,special rule regarding certain small projects 7#a7 ,in general ,in the case of any qualified rehabilitated building or portion thereof-- 7,a7 which is placed in service after the date of the enactment of this subsection1 and 7,b7 which is a small project1 subsection 7a77#b7 shall be applied by substituting #cj percent for #bj percent4 7#b7 ,maximum credit ,the credit under this section 7after application of this subsection7 with respect to any project for all taxable years shall not exceed #gej1jjj4 7#c7 ,small project 7,a7 ,in general ,for purposes of this subsection1 the term small project means any certified historic structure or portion thereof if-- 7i7 the total qualified rehabilitation expenditures taken into account for purposes of this section with respect to the rehabilitation do not exceed #c1gej1jjj1 and 7ii7 no credit was allowed under this section for either of the two immediately preceding taxable years with respect to such building4 7,b7 ,progress expenditures ,credit allowable by reason of subsection 7d7 shall not be taken into account under subparagraph 7,a77ii74 4 7b7 ,effective date ,the amendment made by this section shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 #c4 ,allowance for the transfer of credits for certain small projects 7a7 ,in general ,section #dg7;e7 of the ,internal ,revenue ,code of #aihf1 as added by section #b1 is amended by adding at the end the following new paragraph3 7#d7 ,transfer of small project credit 7,a7 ,in general ,subject to subparagraph 7,b7 and such regulations or other guidance as the ,secretary may provide1 the taxpayer may transfer to any other taxpayer all or a portion of the credit allowable to the taxpayer under subsection 7a7 for a small project4 7,b7 ,certification ,a transfer under subparagraph 7,a7 shall be accompanied by a certificate which includes-- 7i7 the certification for the certified historic structure1 7ii7 the taxpayer's name1 address1 and tax identification number1 7iii7 the transferee's name1 address1 and tax identification number1 7iv7 the date of project completion and the amount of credit being transferred1 and 7v7 such other information as may be required by the ,secretary4 7,c7 ,credit may only be transferred once ,a credit transferred under subparagraph 7,a7 is not transferable by the transferee to any other taxpayer4 7,d7 ,tax treatment of transfer 7i7 ,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 paragraph4 7ii7 ,allowance of credit ,the amount of credit transferred under subparagraph 7,a7-- 7,i7 shall not be allowed to the transferor for any taxable year1 and 7,,ii7 shall be allowable to the transferee as a credit under this section for the taxable year of the transferee in which such credit is transferred4 7,e7 ,recapture and other special rules ,for purposes of section #ej1 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 project4 7,f7 ,information reporting ,the transferor and the transferee shall each make such reports regarding the transfer of an amount of credit under subparagraph 7,a71 and containing such information1 as the ,secretary may require4 ,the reports required by this subparagraph shall be filed at such time and in such manner as may be required by the ,secretary4 4 7b7 ,effective date ,the amendment made by this section shall apply to periods after ,december #ca1 #bjaf4 #d4 ,increasing the type of buildings eligible for rehabilitation 7a7 ,in general ,section #dg7;c77#a77;,c77i77,i7 of the ,internal ,revenue ,code of #aihf is amended by inserting #ej percent of before the adjusted basis4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to taxable years beginning after ,december #ca1 #bjaf4 #e4 ,reduction of basis adjustment for rehabilitation property 7a7 ,in general ,section #ej7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#f7 ,special rule relating to the rehabilitation credit ,in the case of any rehabilitation credit-- 7,a7 only #ej percent of such credit shall be taken into account under paragraph 7#a71 and 7,b7 only #ej percent of any recapture amount attributable to such credit shall be taken into account under paragraph 7#b74 4 7b7 ,coordination with basis adjustment ,subsection 7d7 of section #ej of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,for purposes of paragraph 7#e71 in applying the provisions of section #dh7;d77#e77;,b7 7as so in effect7 to a lease of property eligible for the credit under section #dg1 gross income of the lessee of such property shall include1 ratably over the shortest recovery period applicable to such property under section #afh1 an amount equal to #ej percent of the amount of the credit allowable under section #ch to such lessee with respect to such property44 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #f4 ,modifications regarding certain tax-exempt use property 7a7 ,in general ,section #dg7;c77#b77;,b77v77,i7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 and subclauses 7,i71 7,,ii71 and 7,,iii7 of section #afh7;h77#a77;,b77ii7 shall not apply after thereof4 7b7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of the enactment of this ,act4