Legislative Brief: Historic Homeowners Revitalization Act of 2009
Title
Historic Homeowners Revitalization Act of 2009 (Download Full Text)
Sponsors
Rep. Russ Carnahan (D-MO), co-chair of the Congressional Historic Preservation Caucus, introduced the Historic Homeowners Revitalization Act of 2009. Caucus co-chair Michael Turner (R-OH) and sponsor of the Community Restoration and Revitalization Act, Allyson Schwartz (D-PA), cosponsored the measure at introduction. Other original cosponsors are Shelley Berkley (D-NV), Joe Crowley (D-NY), Maurice Hinchey (D-NY), Jim Langevin (D-RI), Steve Cohen (D-TN), Chris Van Hollen (D-MD), Ike Skelton (D-MO), Earl Blumenauer (D-OR), and Michael Capuano (D-MA).
Summary
The bill, reintroduced from last Congress, is a version of a measure that the National Trust for Historic Preservation helped draft for introduction by former Congressman Mike Andrews (D-TX) along with former Reps. Barbara Kenelly (D-CT) and Clay Shaw (R-FL) in 1994. It would amend the tax code to provide owners of historic homes with a rehabilitation incentive similar to the historic tax credit for commercial buildings. The backbone of the new program would give the owners of qualified, owner-occupied dwellings a 20% income tax credit on rehabilitation costs with a $60,000 cap. It would also increase the credit for buildings in economically-distressed areas where construction costs are high.
To be eligible, the taxpayer must make qualified rehabilitation expenditures over a two-year period that exceed $5,000 or the taxpayer's basis in the property and must use the home as a principal residence. The credit is also available for developers who rehabilitate homes sold to buyers as a principal residence. Costs to enlarge dwellings are not eligible. Combining this credit with applicable state historic credits would be permissible to provide an even deeper rehabilitation incentive. Low-income homeowners with limited tax liability would be able to transfer the credit by selling it. They could use the proceeds for the equity needed by a bank to enable them to finance rehabilitation work on their home.
