 1) FY25 Funding Moves Forward! The FY25 Notice of Funding Opportunity (NOFO) for the Historic Preservation Fund (HPF) has been approved, and State/Tribal Historic Preservation Offices can now submit applications for funding.
2) The Historic Rehabilitation Tax Credit was retained in the Senate budget reconciliation bill. Unfortunately, no improvements that we have been advocating for were included, but we are pleased that we were not targeted for a rollback or elimination as we were in 2017. The House is taking up the bill now. Your advocacy and dedication helped to make this possible! Thank you! What's next? If you reached out to a member of Congress on these issues, please consider following up and thanking them for their support. We will continue advocating for the FY26 HPF funds, as well as other essential programs.  FY25 funds for the Historic Preservation Fund (HPF) were appropriated by Congress in March 2025. They are currently frozen and have not been released. In short, the HPF makes preservation possible. This fund is an expression of federal commitment to America's rich heritage.
✂️This impacts: SHPOs, Tribal Historic Preservation Offices, Certified Local Governments, and all Historic Preservation funded grants affecting every state and territory. Impacts include job losses, projects halted, billions in investment stalled, and historic resources will be lost due to this delay. ❌ Additionally, the President’s proposed FY2026 federal budget cuts the HPF almost entirely. The HPF is not tax payers dollars, but a tiny portion of offshore oil and gas lease revenue, and has been the main funding source of preservation since 1976. Contact your Members of Congress and ask them to act: ✅Release the FY2025 funds already appropriated ✅ Fully fund the Historic Preservation Fund in FY2026 ✅ Thank them for their support of improvements to the Historic Tax Credit 📞Senator Shelley Moore Capito - 202.224.6472 📞Senator James C. Justice II - 202.224.3954 📞Congresswoman Carol Miller - 202.225.3452 📞Congressman Riley Moore - 202.225.2711  Sen. Shelley Moore Capito (R-WV) and Sen. Mark Warner (D-VA) recently introduced the Rural Historic Tax Credit Improvement Act (S. 631, H.R. 1454) in the Senate. This bill would makes several changes to the Historic Tax Credit (HTC) aimed at streamlining processes, reducing cost burdens to rural property owners and developers, and provide affordable housing incentives. Rep. Mike Carey (R-OH) and Rep. Steven Horsford (D-NV) introduced companion legislation in the House.
This bill would increase the HTC from 20% to 30% for projects in rural areas, further bump up the credit to 40% for affordable housing creation, allow the credit to be taken in the first year for small and rural projects, and would eliminate the basis adjustment. All of these changes would help improve the HTC and make it more beneficial for smaller and rural projects, where projects are often less financially viable. A new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) was reintroduced by Rep. Darin LaHood (R-IL) and Rep. Tom Suozzi (D-NY) in the U.S. House and Sen. Bill Cassidy (R-LA) and Sen. Mark Warner (D-VA) in the U.S. Senate. The bill would return to a one-year delivery of the historic tax credit (HTC). Other new provisions would specifically encourage smaller and rural projects with a boost in credit, and a new allowance for transferring credits.
 Vacant school buildings would particularly benefit if this legislation passed. Pictured here is the Calhoun County High School, which is currently being rehabilitated. (Image from Facebook).  PAWV in Washington D.C. in 2023, advocating alongside representatives from the National Trust for Historic Preservation and Arthurdale Heritage. Currently, many historic rehabilitation tax credit projects are not economically viable in small and rural areas, giving a disproportionate advantage of the credit to large urban developments. The costs associated with the credit as-is severely limits rural areas, and especially largely rural states like West Virginia, from being able to use the credit to rehabilitate and revitalize historic properties.
To address these deficiencies, Senator Shelley Moore Capito (R-WV) and Senator Mark Warner (D-VA) introduced the Rural Historic Tax Credit Improvement Act yesterday. This bill aims to streamline processes, reduce cost-burdens to rural property owners and small developers, and provide affordable housing incentives. “Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Senator Capito said. “I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation. The Rural Historic Tax Credit Improvement Act will help level the playing field for communities in West Virginia by attracting investment for economic expansion and additional housing supply.” Key changes of the Rural Historic Tax Credit Improvement Act are to:
PAWV's Executive Director, Danielle Parker, further explained: "Rural communities face uphill battles to preserve historic assets, grappling with significant challenges to utilize the historic rehabilitation tax credit due to disproportionately high cost burdens. PAWV is honored to work with Senator Capito and Senator Warner to address these challenges and make historic preservation efforts in our rural downtowns more financially viable. This bipartisan bill will bring small scale rehabilitation projects on par with larger more attractive developments, thereby preserving our small Main Streets and demonstrating that historic preservation is not just a cultural priority but an economic one that benefits all Americans." PAWV worked closely with members of the Abandoned Properties Coalition's Historic Tax Credit Team to advocate for this legislation over the past two years. We are thankful for the support of the Historic Tax Credit Coalition, Main Street America, and the National Trust for Historic Preservation. More information available HERE. Come to Virtual Morning Coffee with the Preservation Alliance of West Virginia, the National Trust Community Investment Corporation, and the National Trust for Historic Preservation.
Join us at 9am on Thursday, December 16th, for a news brief where we’ll discuss an opportunity to improve a crucial tool for redeveloping West Virginia’s downtowns and incentivizing the re-use of vacant buildings - the historic tax credit. A total of 122 Federal Historic Tax Credit projects in West Virginia between fiscal year 2001 through 2020 has leveraged an estimated $258,016,381 in total development. During the news brief, we will share a legislative update, how to take action and how potential improvements to the historic tax credit can benefit local community development by maximizing the long-term impact and sustainability of current federal funding opportunities for community projects by incentivizing private sector investment. Register here https://savingplaces-org.zoom.us/meeting/register/tJ0lf-6rrDwsHtUg7nddSrjOJqOE8i9b3ibZ We're pleased to share that the 20 percent federal historic tax credit (HTC) was retained in the final tax reform bill. Keeping the federal historic tax credit as a permanent part of the tax code is a significant victory for the historic preservation community—especially considering that the first House version eliminated the credit.
We owe this success to the thousands of advocates who rose to the occasion and made your voices heard, as well as to the leadership of key members of Congress. We are particularly grateful to Representatives David McKinley (R-WV) for exhibiting strong leadership during this process. On Friday, December 15, House and Senate conference committee members reached agreement on the details of major tax legislation that will now proceed to a final vote in both chambers this week. The agreed-upon version keeps the historic tax credit at 20 percent but requires that the credit be taken over five years instead of all at once. The legislation repeals the 10 percent rehabilitation tax credit for non-historic buildings, but it does retain the New Markets Tax Credit.
Inclusion of the historic tax credit in the most significant tax legislation to move through Congress in more than three decades is an exceptional reaffirmation that rehabilitation of historic buildings is sound federal policy and good for the nation. While several steps remain before the Tax Cuts and Jobs Act (H.R. 1) becomes law, please take a moment to reflect on what a significant accomplishment retention of the historic tax credit is for the preservation movement and for the betterment of our communities. With the recent increase in the state historic tax credit to 25%, West Virginians will have access to 45% in combined state and federal tax credits when undertaking construction on a historic income-producing property. The 25% increase takes effect on January 1, 2018. Thank you to the many preservationists, practitioners, and stakeholders who worked countless hours to ensure this critical preservation tool remains a pillar of federal historic preservation policy. Thank you to Congressmen McKinley and Jenkins for standing up to retain the historic tax credit and signing a Tax Credit letter focused on the Historic Tax Credit and New Markets Tax Credit. You can thank Congressman McKinley through his website at https://mckinley.house.gov/email-me/. He has been instrumental in leading the effort to save the historic tax credit. You can thank Congressman Jenkins through his website at evanjenkins.house.gov/contact/email. Urgent Action Needed: Advocate for a 20% HTC in Final House/Senate Reconciled BillEarly on Saturday morning, the United States Senate passed its tax reform bill on a vote of 51-49, moving the legislation to a House and Senate Conference Committee to reconcile the two versions of tax reform. The Senate bill restores the 20% Historic Tax Credit (HTC) with a provision that it will be claimed over five years.
Your immediate ACTION is needed! All advocates should be fully activated across the country, connecting with both House and Senate offices. Call-to-Action: Call (during office hours) the offices of your Members of Congress. Ask to speak to tax staff, your staff contacts in offices or ask for email addresses of tax staff. Scroll down for contact information and suggested messages: 1. Introduce Yourself as a Constituent Contact info: McKinley, David - (R - WV, 1) (202) 225-4172 https://mckinley.house.gov/contact/ Suggested thank you: "I would like to thank the Congressman for his leadership during the tax reform bill and for his efforts to preserve the 20% Federal historic tax credit. We hope the Congressman will continue to fight for this important financial development tool during House and Senate conference committees related to the tax reform bill." Mooney, Alex - (R - WV, 2) (202) 225-2711 https://mooney.house.gov/contact Jenkins, Evan - (R - WV, 3) (202) 225-3452 Contact: https://evanjenkins.house.gov/contact Suggested Message to Congressmen Mooney & Jenkins: I am calling to request your help to ensure the existing federal historic tax credit (HTC) is retained through the tax reform process. The House tax reform bill repeals the HTC, but the Senate Finance Committee is proposing to keep the historic tax credit in place with certain reductions to the incentive. We need the HTC retained at its current level of effectiveness so that this proven tool can continue to restore under-utilized buildings, create local jobs and revitalize older commercial districts. 2. Explain why you value Historic Tax Credits, and that the redevelopment of historic buildings will not get done without the HTC. 3. Let them know some previous and future HTC projects in your state/district 4. Touch on why these historic buildings are so challenging but important to our communities. 5. If your Member of Congress has agreed to help, please remember to thank them and tell others about their support! SENATORS: Contact info: Manchin, Joseph - (R - WV) 202-224-3954 https://www.manchin.senate.gov/contact-joe Capito, Shelley Moore - (R - WV) (202) 224-6472 Contact: www.capito.senate.gov/contact/contact-shelley Suggested thank you - “I would like to thank the Senator for supporting a tax reform bill that includes a 20% Historic Tax Credit in Senate tax reform bill. This is a significant improvement compared to the elimination in the House bill. Please communicate to Senate Republican Leaders and Chairman Hatch (R-UT) that they must not weaken important protections for the Historic Tax Credit when they reconcile the House and Senate bills.” It is extremely important to keep all Capitol Hill communication constructive and respectful. Background In November, Senate Finance Committee legislation eliminated the pre-1936 10% non-historic “old-building” credit and reduced the 20% HTC to 10%. HTC advocates were successful in working with Senator Cassidy (R-LA), and other Finance Committee Senators, to support a provision to restore the HTC to 20% for historic buildings. As a cost saving measure, the “Cassidy Amendment” provided that the 20% credit will be released over the 5-year compliance/recapture period (or 4% per year). The Finance Committee approved the provision, which was included in a Manager’s Amendment, on a party line vote. The House passed a tax reform bill on November 16th. The House version of the bill eliminates both the 10% pre-1936 non-historic “old building” credit and the 20% HTC. With House Republicans highly motivated for a legislative win, few Republicans voted against the bill. Next Steps House members will still have an opportunity to voice their continuing support of the HTC when the House and Senate negotiate the final tax package. Many House members and supporters of the HTC have encouraged House Leadership to accept the improvements in the Senate bill and advocates are encouraged THIS WEEK to continue sending this message to their Members of Congress. While advocates are disappointed they could not fully restore the 20% HTC to current law and prevent the elimination of the 10% pre-1936 rehabilitation credit, they are standing their ground, insisting on the Senate provision and that no further erosion takes place. Urgent Action Requested! The federal historic tax credit reduced in Senate Tax Reform Bill Release, House Committee Passes Tax Bill with HTC Eliminated Today the Senate Finance Committee released their version of a tax reform bill that reduces the Historic Tax Credit in half, from 20% to 10% for historic buildings. Additionally, the 10% pre-1936 non-historic “old” building credit is eliminated. Also today, the House Ways and Means Committee passed The Tax Cuts and Jobs Act (TCJA) or H.R. 1, with the HTC entirely eliminated, on a party line vote 24-16, setting up full-House floor consideration next week. Your immediate ACTION is needed! Advocacy Resources
How Can You Take Action? Contact House and Senate Members - Call (during office hours) the offices of your Members of Congress. Ask to speak to tax staff, your staff contacts in offices or ask for email addresses of tax staff. A suggested outline of your email message or phone call:
All advocates should be fully activated across the country, connecting with both House and Senate offices, asking them to retain the HTC in tax reform bills, undiminished. The fate of the HTC will be determined over the next few weeks, please advocate and ask others to advocate!
The House of Representatives is expected to consider and vote on the bill on the House floor next week. Also next week, the Senate will begin to mark-up and pass their version of the tax reform bill out of the Senate Finance Committee. -Please contact your House Representative by COB Monday and ask them to work with House leadership to insert the HTC back into the final House bill. -Contact your Senators by COB Monday and ask them to go to the Senate Finance Committee and Senate leadership, express support to retain the HTC in the Senate tax reform bill undiminished. Despite our collective frustrations, it is extremely important to keep all Capitol Hill communication constructive and respectful. Advocates Should Focus on Preserving the HTC not influencing the Transition Rules While the House repeal transition rules have been described as both stingy and unclear, advocates should direct 100% of their advocacy to preserving the credit in its current form in the House and Senate. Should the need arise, there will be opportunities later in the legislative process to negotiate favorable transition rules. Now is not that time. Such actions could extinguish momentum advocates are gaining to retain the HTC in tax reform. There is a good chance the Senate bill passed out of committee will incorporate the historic tax credit and there is still opportunity for the HTC to be added back in the House bill. |
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