1. Short title This Act may be cited as the Historic Tax Credit Growth and Opportunity Act of 2023 . 2. Increase in rehabilitation credit (a) In general Section 47(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (3) Increased percentage for qualified rehabilitation expenditures before 2028 (A) In general In the case of any qualified rehabilitated building with respect to which there are qualified rehabilitation expenditures paid or incurred in any taxable year beginning after December 31, 2020, and before January 1, 2028— (i) paragraph (2) shall be applied by substituting the applicable percentage for 20 percent with respect to such expenditures, and (ii) the ratable share of such expenditures shall be determined separately under paragraph (2) by applying the applicable percentage for each such taxable year to the expenditures for each such taxable year. (B) Applicable percentage For purposes of this paragraph, the term applicable percentage means the percentage determined in accordance with the following table: In the case of a taxable year beginning in: The applicable percentage is— 2020 through 2025 30 2026 26 2027 23 2028 and thereafter 20 . (b) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2023. 3. Increase in the rehabilitation credit for certain small projects (a) In general Section 47 is amended by adding at the end the following new subsection: (e) Special rule regarding certain small projects (1) In general In the case of any small project— (A) the percentage under subsection (a)(2) shall be 30 percent, and (B) the qualified rehabilitation expenditures taken into account under this section with respect to such project shall not exceed $2,500,000. (2) Small project For purposes of this subsection, the term small project means the rehabilitation of any qualified rehabilitated building if— (A) the qualified rehabilitation expenditures taken into account under this section (or which would