S.631

Enhances the rehabilitation credit for buildings in rural areas under the Internal Revenue Code.

The Rural Historic Tax Credit Improvement Act amends the Internal Revenue Code to enhance the rehabilitation credit for buildings in rural areas. It increases the credit to 40% for affordable housing projects and 30% for non-affordable housing projects, with a $5 million limit on expenditures. It also allows for the transfer of credits, requires information reporting, and eliminates the basis adjustment for rehabilitation credits. The changes apply to property placed in service after December 31, 2025.