Rehabilitation of Historic Schools Act of 2026
- Bill Number
- H.R. 8501
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-27: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-10T08:06:16Z
AI-Generated Summary
Rehabilitation of Historic Schools Act of 2026 (H.R. 8501)
Purpose
To expand eligibility for the historic rehabilitation tax credit—a federal tax break that offsets costs for renovating qualified historic buildings—by including public school buildings, encouraging upgrades to aging school infrastructure.
Key Provisions
- Amends tax code: Modifies Section 47 of the Internal Revenue Code to exempt public school buildings from an existing exclusion that prevents certain educational facilities from qualifying for the credit.
- Eligibility criteria for public schools:
- The building must have been used as a qualified public educational facility (public K-12 schools eligible for certain tax-exempt bonds) at any time in the 5 years before rehabilitation begins.
- It must continue as such immediately after rehabilitation.
- Reporting requirement: The Treasury Secretary must submit a report to Congress 5 years after enactment, detailing:
- Number of rehabilitated facilities and students served (by state).
- Facilities and students in low-income communities.
- Total rehabilitation costs per facility.
- Other relevant impact data.
- Effective date: Applies to buildings placed in service (ready for use) after enactment.
Significant Changes to Existing Law
- Removes a barrier in Section 47(c)(2)(B)(v) that previously barred many public educational buildings from the rehabilitation credit, even if historic.
- No changes to the core credit rules (typically 20% for certified historic structures), but broadens access specifically for qualifying public schools.
Potential Impacts
- On citizens: Improves safety and quality of public school buildings, benefiting students (especially in low-income areas) through better learning environments without full local taxpayer burden.
- On government agencies: School districts and local governments gain tax incentives for renovations, potentially reducing maintenance backlogs; Treasury must produce a detailed impact report.
- No notable international relations impacts.
Main Stakeholders Affected
- Public school districts and local governments: Primary beneficiaries, able to claim credits for rehab costs.
- Students and communities: Especially in underserved or low-income areas with aging schools.
- Taxpayers and developers: Indirectly, via federal revenue offset from credits.
- U.S. Treasury Department: Responsible for oversight and reporting.
Notable Legal, Constitutional, or Political Implications
- Legal: Straightforward tax code amendment; aligns with existing historic preservation incentives while targeting public infrastructure—no constitutional challenges apparent.
- Political: Sponsored by bipartisan House members (though primarily Democrats); promotes education investment via tax policy, with built-in evaluation to assess effectiveness and justify future expansions.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (8)
Rep. Davis, Danny K. [D-IL-7], Rep. Moore, Gwen [D-WI-4], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Figures, Shomari [D-AL-2], Rep. Thompson, Mike [D-CA-4]
Recent Actions
- 2026-04-27: Referred to the House Committee on Ways and Means.
- 2026-04-27: Introduced in House
- 2026-04-27: Introduced in House
Bill Versions
- Rehabilitation of Historic Schools Act of 2026 — issued 2026-04-27 — PDF (3 pages)