,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bhbe  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ag1 #bjai,mr4  
,blumenauer 7for himself1 ,mr4 ,kelly of
 ,pennsylvania1 ,ms4 ,sewell of         
,alabama1 ,mr4 ,la,hood1 ,mr4 ,higgins  
of ,new ,york1 and ,mr4 ,turner7        
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
modify the rehabilitation credit for    
certain small projects1 to eliminate the
 requirement that the taxpayer's basis  
in a building be reduced by the amount  
of the rehabilitation credit determined 
with respect to such building1 and for  
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,historic ,tax 
,credit ,growth and ,opportunity ,act of
 #bjai4  #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 smaller 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 smaller project1  subsection 
7a77#b7 shall be applied by substituting
 #cj percent for #bj percent4  7#b7     
,maximum credit ,the credit determined  
under this subsection with respect to   
any smaller project for all taxable     
years shall not exceed #gej1jjj4  7#c7  
,smaller project defined  7,a7 ,in      
general ,for purposes of this           
subsection1 the term smaller project    
means any qualified rehabilitated       
building or portion thereof if-- 7i7 the
 qualified rehabilitation expenditures  
taken into account for purposes of this 
section 7or would have been so taken    
into account if this subsection had been
 in effect for all prior periods7 with  
respect to the rehabilitation are not   

over #c1gej1jjj1 and  7ii7 no credit was
 allowed under this section for either  
of the #b prior 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   
amended by section #b1 is amended by    
adding at the end the following new     
subsection3  7#d7 ,transfer of smaller  
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 all or a portion of the credit
 allowable to the taxpayer under        
subsection 7a7 for a smaller project4   
7,b7 ,certification  7i7 ,in general ,a 
transfer under subparagraph 7,a7 shall  
be accompanied by a certificate which   
includes--  7,i7 the certification for  
the certified historic structure        
referred to in subsection 7c77#c71      
7,,ii7 the taxpayer's name1 address1 tax
 identification number1 date of project 
completion1 and the amount of credit    
being transferred1  7,,iii7 the         
transferee's name1 address1 tax         
identification number1 and the amount of
 credit being transferred1 and  7,,iv7  
such other information as may be        
required by the ,secretary4  7ii7       
,transferability of certificate ,a      
certificate issued under this section to
 a taxpayer shall be transferable to any
 other taxpayer4  7,c7 ,tax treatment   
relating to certificate  7i7            

,disallowance of deduction ,no deduction
 shall be allowed for the amount of     
consideration paid or incurred by the   
transferee4  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  7iii7 ,exclusion ,gross
 income shall not include any amount    
received in connection with the transfer
 of the certificate4  7,d7 ,recapture   
and other special rules ,the taxpayer   
who claims a credit under this section  
by reason of a transfer of an amount of 
credit under subparagraph 7,a7 with     
respect to a smaller project shall be   
treated as the taxpayer with respect to 
the smaller project for purposes of     
section #ej4  7,e7 ,information         
reporting ,the transferor and the       
transferee shall each make such reports 

regarding the transfer of an amount of  
credit under paragraph 7,a7 and         
containing such information as the      
,secretary may require4 ,the reports    
required by this subsection shall be    
filed at such time and in such manner as
 may be required by the ,secretary4     
7,f7 ,regulations ,the ,secretary shall 
prescribe regulations or other guidance 
to carry out this paragraph4  4  7b7    
,effective date ,the amendments made by 
this section shall apply to periods     
after the date of the enactment of this 
,act4  #d4 ,increasing the type of      
buildings eligible for rehabilitation   
7a7 ,in general ,section                
#dg7;c77#a77;,b77i77,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 the date of the enactment of this 
,act4  #e4 ,elimination of              
rehabilitation credit basis adjustment  

7a7 ,in general ,section #ej7;c7 of the 
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#f7          
,exception for rehabilitation credit ,in
 the case of the rehabilitation credit1 
paragraph 7#a7 shall not apply4  4  7b7 
,treatment in case of credit allowed to 
lessee ,section #ej7;d7 of such ,code is
 amended by adding at the end the       
following3 ,in the case of the          
rehabilitation credit1 paragraph        
7#e77;,b7 of the section #dh7;d7        
referred to in paragraph 7#e7 of this   
subsection shall not apply44  7c7       
,effective date ,the amendments made by 
this section shall apply to property    
placed in service after the date of the 
enactment of this ,act4  #f4            
,modifications regarding certain        
tax-exempt use property  7a7 ,in general
 ,section #dg7;c77#b77;,b77v7 of the    
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subclause3  7,,iii7       

,disqualified lease rules to apply only 
in case of government entity ,for       
purposes of subclause 7,i71 except in   
the case of a tax-exempt entity         
described in section                    
#afh7;h77#b77;,a77i71 the determination 
of whether property is tax-exempt use   
property shall be made under section    
#afh7;h7 without regard to whether the  
property is leased in a disqualified    
lease 7as defined in section            
#afh7;h77#a77;,b77ii774  4  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