Bill > S1686

This bill establishes a new tax credit program called the Neighborhood Homes Investment Act designed to incentivize housing development and rehabilitation in distressed urban and rural communities. The bill creates a tax credit for developers and homeowners who build or substantially rehabilitate homes in qualifying census tracts with low median incomes, high poverty rates, and low home ownership rates. The credit can cover up to 40% of development costs or up to 32% of the national median home sale price, with specific provisions for new construction, home rehabilitation, and owner-occupied home improvements. The credit is administered by state neighborhood homes credit agencies, which will allocate credits based on a qualified allocation plan that prioritizes projects contributing to neighborhood stability. Homeowners receiving credits must occupy the home as their primary residence and meet certain income requirements, and they may be required to repay a portion of the credit if they sell the home within five years. The bill aims to address housing supply shortages, particularly in low-income communities, by providing financial incentives for home development and improvement, with a focus on creating affordable homeownership opportunities and promoting neighborhood revitalization.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1686/all-info