This bill proposes significant enhancements to the existing historic rehabilitation tax credit program. Its primary goal is to stimulate investment in historic preservation by making the credit more accessible, valuable, and flexible for a wider range of projects and investors. Key provisions include allowing the full 20 percent rehabilitation credit to be claimed in the year a building is placed in service, rather than being spread over multiple years. For qualifying small projects , the bill increases the credit rate to 30 percent , with expenditure limits of $3,750,000, or $5,000,000 for projects located in rural areas . These enhanced credits for small projects are also made transferable , allowing taxpayers to sell or assign the credit to other entities. The legislation also broadens the types of buildings eligible for rehabilitation by modifying the substantial rehabilitation test , requiring rehabilitation expenditures to exceed 50 percent of the adjusted basis. Furthermore, it eliminates the requirement for taxpayers to reduce the basis of the rehabilitated property by the amount of the credit claimed, thereby increasing the overall financial benefit. Finally, the bill clarifies that "disqualified lease rules" for determining tax-exempt use property apply only to government entities, potentially expanding the credit's applicability for certain non-governmental tax-exempt organizations.