Preserve Historic America Act of 2007 - Amends the Internal Revenue Code to modify the tax credit for rehabilitation of older and historic buildings by: (1) increasing from 20 to 25% the tax credit rate for certified historic structure rehabilitation expenditures; (2) permitting a building at least 50 years old to qualify for the rehabilitation tax credit (currently, a building must have been placed in service before 1936); (3) permitting qualified rehabilitated buildings to be used for lodging purposes; (4) limiting to 50% the basis reduction for buildings qualifying for the low-income housing and rehabilitation tax credits; (5) allowing an increased rehabilitation tax credit for certain buildings in difficult development areas or which qualify as small rehabilitation projects; (6) exempting tax credits for rehabilitation of certified historic structures from the calculation of the passive activity credit; and (7) permitting the assignment of rehabilitation tax credits.
Allows a new tax credit for 20% of the cost of rehabilitating a qualified historic home. Defines "qualified historic home" as a certified historic structure which has been substantially rehabilitated and which is owned by the taxpayer and is or will be used as the taxpayer's principal residence.