Bill > HR3964

This bill proposes to amend the Internal Revenue Code to increase the Low-Income Housing Tax Credit (LIHTC) for projects specifically serving extremely low-income households. Under the proposed changes, buildings where at least 20% of residential units are designated for households earning no more than 30% of the area median gross income (or 100% of the federal poverty line) can receive an enhanced tax credit. Specifically, the eligible basis of these units would be increased to 150% of the standard basis, effectively providing developers with a more substantial financial incentive to create housing for the most economically vulnerable populations. The amendment would apply to housing credit allocations made after the bill's enactment date, with a specific cut-off of December 31, 2025, for certain types of housing project obligations. The bill, known as the "Affordable Housing Equity Act of 2025," aims to encourage the development of affordable housing by making such projects more financially feasible for developers through an increased tax credit mechanism.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3964/all-info