WeVote
Log In

Bill

Bill

HR 8501

Rehabilitation of Historic Schools Act of 2026

119th Congress Introduced by Danny Davis and 8 co-sponsors

The bill allows public school buildings that were qualified public educational facilities in the prior five years to qualify for the historic rehabilitation tax credit.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 8501

Summary of H.R. 8501 — Rehabilitation of Historic Schools Act of 2026

Purpose

  • To amend the Internal Revenue Code to allow rehabilitation expenditures for public school buildings to qualify for the federal rehabilitation (historic) tax credit.

Key Provisions

  • Expansion of Qualified Rehabilitation Expenditures (QREs)

    • The bill adds a specific exception to the existing rehabilitation credit rules: rehabilitation of a public school building that was used as a qualified public educational facility within the five-year period before the rehabilitation begins would be treated as qualified for the rehabilitation credit.
    • In practical terms, this means public school buildings can qualify for the historic rehabilitation tax credit when they are rehabilitated, subject to the timing rule described.

  • Definition and Timing

    • The new clause applies to buildings that were used as a qualified public educational facility (as defined in §142(k)(1) of the Internal Revenue Code) at any time in the five-year window ending as of the start of the rehabilitation.
    • The amendment is added to Section 47(c)(2)(B)(v) of the Internal Revenue Code.

  • Reporting Requirement

    • The Secretary of the Treasury, within five years after enactment, must report to Congress on the effects of the amendment. The report must include:
    • Number of qualified public education facilities rehabilitated and students using those facilities (by state).
    • Number of rehabilitated facilities in low-income communities (per §45D(e)(1) of the Code) and students served.
    • Amount of qualified rehabilitation expenditures for each rehabilitated facility.
    • Any other data the Secretary deems useful for evaluating the impact.

  • Effective Date

    • The amendment applies to property placed in service after the date of enactment (i.e., prospective applications beginning after enactment of the bill).

Who is Affected

  • Public School Buildings that qualify as “qualified public educational facilities” (per existing §142(k)(1)) and undergo rehabilitation.
  • State Education Agencies and School Districts as potential applicants or beneficiaries of the rehabilitation credit for historic restorations.
  • Low-Income Communities may see increased rehabilitation activity due to the alignment with §45D, as reported in the mandated 5-year review.

Procedural and Timeline Aspects

  • Introduction and Referral: Introduced April 27, 2026; referred to the House Ways and Means Committee.
  • Sponsor and Co-sponsors: Primary sponsor Mr. Evans (PA) with co-sponsors from both parties, including Ms. Moore, Ms. Norton, Ms. Scanlon, Ms. Schakowsky, and Mr. Davis.
  • Reporting Requirement: A comprehensive report to Congress due five years after enactment, detailing quantified effects and demographic/locational breakdowns.
  • Effective Date: Applies to property placed in service after enactment.

Potential Impacts and Considerations

  • Incentivizing Rehabilitation: By allowing public school rehabilitation projects to qualify for the federal rehabilitation credit, the bill could incentivize preservation and modernization of historic school facilities.
  • Funding Flexibility: Schools may leverage the credit to offset rehabilitation costs, potentially increasing private investment or public-private partnerships in school renovations.
  • Equity Focus: The bill requires data on projects in low-income communities, enabling assessment of whether the policy benefits underserved areas.
  • Administrative Oversight: Increased reporting obligations will require coordination between Treasury and federal agencies to collect and analyze project-level data.

This summary reflects the bill text and stated provisions as introduced.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.