Historic Tax Credit Growth and Opportunity Act of 2025

Raises the federal rehabilitation (historic/qualified building) tax credit to 20% of qualifying rehab costs and creates a new enhanced rule for smaller projects that increases the credit and allows part or all of the credit to be transferred/sold with required certificates and reporting. It also expands the kinds of buildings that can qualify, removes the usual tax-basis reduction rules tied to claiming the credit, and clarifies how tax‑exempt use is determined for affected property.

Changes generally apply to property placed in service after the law takes effect (some changes reference placement in service after Dec 31, 2023). The bill alters eligibility, administration, and the tax treatment of the credit, which affects building owners, developers, small projects, investors, lessees, and nonprofit project sponsors.