Neighborhood Homes Investment Act
Summary
What This Bill Does
The bill creates congressional findings establishing that the US faces a housing shortage disproportionately affecting low-income and distressed communities, that homeownership builds household wealth and neighborhood stability, amends the Internal Revenue Code to insert new Section 42A creating the Neighborhood Homes Credit: a general business tax credit for developers who build or substantially rehabilitate qualified residences in distressed, and creates full text of new IRC Section 42A establishing the Neighborhood Homes Credit: defines credit calculation (lesser of development cost gap, 40% of eligible costs, or 32% of national median new home price). It relies on tax credits, reporting requirements, compliance mandates, and definition changes. The main policy areas are Tax Policy, Housing, Finance, and Energy.
Who Benefits and How
Small residential builders and remodelers could face fewer barriers, Residential developers and homebuilders in distressed areas could gain revenue opportunities, and Residential developers and homebuilders could gain revenue opportunities.
Who Bears the Burden and How
Federal Treasury (foregone tax revenue) could face higher costs, State neighborhood homes credit agencies would take on compliance duties, and State housing finance agencies would take on compliance duties.
Key Provisions
- Creates congressional findings establishing that the US faces a housing shortage disproportionately affecting low-income and distressed communities, that homeownership builds household wealth and neighborhood stability...
- Amends the Internal Revenue Code to insert new Section 42A creating the Neighborhood Homes Credit: a general business tax credit for developers who build or substantially rehabilitate qualified residences in distressed...
- Creates full text of new IRC Section 42A establishing the Neighborhood Homes Credit: defines credit calculation (lesser of development cost gap, 40% of eligible costs, or 32% of national median new home price)...
- Creates new IRC Section 139J excluding from gross income any subsidy provided by a State energy office for energy improvements made to a qualified residence (as defined in Section 42A), ensuring that state energy...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates congressional findings establishing that the US faces a housing shortage disproportionately affecting low-income and distressed communities, that homeownership builds household wealth and neighborhood stability, amends the Internal Revenue Code to insert new Section 42A creating the Neighborhood Homes Credit: a general business tax credit for developers who build or substantially rehabilitate qualified residences in distressed, and creates full text of new IRC Section 42A establishing the Neighborhood Homes Credit: defines credit calculation (lesser of development cost gap, 40% of eligible costs, or 32% of national median new home price).
Key Policy Areas
Tax Policy, Housing, Finance, Energy
Primary Purpose
The bill creates congressional findings establishing that the US faces a housing shortage disproportionately affecting low-income and distressed communities, that homeownership builds household wealth and neighborhood stability, amends the Internal Revenue Code to insert new Section 42A creating the Neighborhood Homes Credit: a general business tax credit for developers who build or substantially rehabilitate qualified residences in distressed, and creates full text of new IRC Section 42A establishing the Neighborhood Homes Credit: defines credit calculation (lesser of development cost gap, 40% of eligible costs, or 32% of national median new home price).
Policy Domains
Whole bill
Identified Gains
- Small residential builders and remodelers
- Residential developers and homebuilders in distressed areas
- Residential developers and homebuilders
- Low-to-moderate income homebuyers (up to 140% AMI)
- Low-to-moderate income homebuyers
Identified Costs
- Federal Treasury (foregone tax revenue)
- State neighborhood homes credit agencies
- State housing finance agencies
- Federal government / IRS
- Homebuyers who resell within 5 years
Sponsors
Legislative Progress
In CommitteeMr. Kelly of Pennsylvania (for himself, Mr. Larson of Connecticut, …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Existing homeowners in qualified tracts (owner-occupied rehab), Homebuyers who resell within 5 years, Homeowners in qualified tracts needing rehabilitation
Positive-direction: Existing homeowners in qualified tracts (owner-occupied rehab), Homeowners in qualified tracts needing rehabilitation, Homeowners receiving state energy subsidies for qualified residences, Low-to-moderate income homebuyers, Low-to-moderate income homebuyers (up to 140% AMI)
Negative-direction: Homebuyers who resell within 5 years
Residential developers and homebuilders, Residential developers and homebuilders in distressed areas, Residential developers receiving state energy subsidies
Federal Treasury (foregone tax revenue), Federal Treasury (reduced tax receipts), Federal government / IRS
State housing finance agencies, State neighborhood homes credit agencies
Tax credit investors and syndicators, Tax credit syndicators and investors
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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