Rehabilitation of Historic Schools Act of 2026

This bill amends the Internal Revenue Code of 1986 to allow rehabilitation expenditures for public school buildings to qualify for a federal tax credit. Previously, a restriction prevented buildings from receiving this credit if they continued to be used as a qualified public educational facility within a five-year period before rehabilitation. The amendment specifically removes this exclusion, making public schools eligible for the credit.

This change aims to incentivize the renovation and improvement of public educational facilities across the nation. The Secretary of the Treasury is also mandated to report to Congress within five years on the effects of this amendment, including the number of schools rehabilitated, student impact, and expenditures, particularly in low-income communities.