On December 19 & 20, 2017, the House and Senate voted to pass the final version of the Tax Cuts and Jobs Act released by a joint House-Senate conference. It includes the 20% Historic Tax Credit.
The House and Senate Conference Committee reconciled the differences between the two versions of the tax bill. They eliminated the pre-1936 10% non-historic tax credit and included the 20% Historic Tax Credit (HTC) with a provision that it will be claimed over five years. Also, the Conference Committee included additional transition rule language that now clearly covers phased rehabilitations for which the taxpayer may select a 60-month period.
President Trump is expected to sign the bill before the end of the year.
While advocates may be disappointed they could not fully restore the 20% HTC to current law and prevent the elimination of the 10% pre-1936 rehabilitation credit, there is plenty to celebrate! While hundreds of deductions and credits have been reduced or eliminated in tax reform, the HTC is expected to be retained as an incentive to protect and restore historic buildings in Maine and across the country.