To amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes.
Sponsors
Legislative Progress
IntroducedMr. LaHood (for himself, Ms. DelBene, Ms. Tenney, Mr. Beyer, …
Summary
What This Bill Does
This bill significantly expands and reforms the Low-Income Housing Tax Credit (LIHTC) program, renaming it the Affordable Housing Tax Credit. It more than doubles state credit allocations from $1.75 to $4.25 per capita, reduces financing barriers for developers, and expands the geographic areas eligible for bonus credits.
Who Benefits and How
- Affordable housing developers receive substantially larger tax credits, reduced bond financing thresholds (from 50% to 25%), and fewer administrative barriers, making projects more financially viable
- Native American tribes and rural communities gain automatic designation as "difficult development areas," qualifying for 30% bonus credits on projects
- Low-income tenants, including veterans, domestic violence survivors, students with disabilities, and voucher holders, gain expanded access to LIHTC housing and stronger protections against displacement
- Tribal housing entities can now compete more effectively for housing credits with dedicated consideration in state allocation plans
Who Bears the Burden and How
- Federal taxpayers face increased tax expenditure costs due to larger credit allocations and expanded bonus eligibility
- State housing credit agencies must implement new oversight requirements for development costs and consider Native American housing needs
- Property owners seeking to exit affordability restrictions face new restrictions on planned foreclosures
- Local governments lose the ability to block affordable housing through opposition or withholding financial support
Key Provisions
- Increases per-capita credit allocation from $1.75 to $4.25, with 25% additional increase in 2026
- Reduces bond financing threshold from 50% to 25% for 4% credit eligibility
- Designates all Indian areas and rural areas as difficult development areas (30% basis boost)
- Prohibits state agencies from considering local government opposition when allocating credits
- Provides 50% basis boost for projects serving extremely low-income households (under 30% AMI)
- Mandates housing protections for domestic violence survivors
- Extends disaster recovery periods to 25-37 months without credit recapture
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Expands and strengthens the Low-Income Housing Tax Credit (LIHTC) program by increasing state allocations, reducing financing thresholds, expanding eligibility for difficult development area bonuses, and adding protections for domestic abuse victims and other vulnerable populations.
Policy Domains
Legislative Strategy
"Expand the affordable housing tax credit program through increased allocations, reduced financing barriers, expanded geographic eligibility, and broader tenant eligibility criteria"
Likely Beneficiaries
- Affordable housing developers and investors (increased credit allocations and easier financing requirements)
- Low-income housing residents (expanded tenant eligibility and protections)
- Native American tribes and tribal housing entities (dedicated difficult development area status)
- Rural communities (automatic difficult development area designation)
- Victims of domestic violence (housing protections)
- Veterans (expanded eligibility exceptions)
- Students meeting income requirements (expanded eligibility exceptions)
Likely Burden Bearers
- Federal government/taxpayers (increased tax expenditure through larger credit allocations)
- State housing credit agencies (increased administrative responsibilities)
- Property owners seeking to terminate extended use periods (new restrictions on planned foreclosures)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "housing_credit_agency"
- → State housing credit agency
- "indian_tribal_government"
- → Indian tribal government
Key Definitions
Terms defined in this bill
A casualty loss that is the result of a federally declared disaster as defined in section 165(i)(5)
Any Indian area as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 and any housing area as defined in section 801(5) of such Act
Any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, which is identified by the qualified allocation plan
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology