H.R.1454 - Rural Historic Tax Credit Improvement Act (119th Congress)
Summary
H.R.1454, the Rural Historic Tax Credit Improvement Act, aims to amend the Internal Revenue Code of 1986 to enhance the rehabilitation credit for buildings located in rural areas. The bill introduces a higher rehabilitation credit for applicable rural projects, particularly those involving affordable housing. It also allows for the transfer of these credits and addresses recapture rules for failure to comply with affordable housing requirements.
Expected Effects
The bill is likely to stimulate investment in the rehabilitation of historic buildings in rural areas. This could lead to the preservation of cultural heritage and the creation of affordable housing options. The transferability of credits may attract more investors to these projects.
Potential Benefits
- Increased investment in rural communities.
- Preservation of historic buildings and cultural heritage.
- Creation of affordable housing options in rural areas.
- Potential for job creation in construction and related industries.
- Attracts outside investment due to transferable tax credits.
Potential Disadvantages
- Potential for misuse of tax credits if not properly regulated.
- Complexity in administering and monitoring compliance with affordable housing requirements.
- Limited impact if the definition of 'rural area' is too restrictive.
- Possible increase in the national debt if not offset by other revenue sources.
- Risk of concentrating benefits in specific rural areas, leading to uneven development.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill uses tax credits to incentivize certain behaviors (rehabilitation of rural buildings, creation of affordable housing) which arguably promote the general welfare. There are no apparent infringements on individual rights or limitations on state power.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).