Bill > S2638

This bill amends the Internal Revenue Code to increase low-income housing tax credits for rehabilitation of existing buildings that achieve enhanced energy performance. Specifically, the bill allows rehabilitation expenditures to be calculated at 130% of actual costs for buildings that meet either an advanced building construction standard (to be determined by the Secretary of Energy) or a qualified retrofit plan. A qualified retrofit plan must be prepared by a licensed architect or engineer and demonstrate that the proposed modifications will reduce the building's site energy usage intensity by at least 50% compared to its baseline energy usage. For buildings in high-cost areas that achieve enhanced energy performance, the rehabilitation expenditures can be calculated at 160% of actual costs. The provisions would apply to housing credit allocations made after December 31, 2025, with special considerations for bond-financed projects. The goal is to incentivize energy-efficient upgrades in affordable housing by providing additional tax credits for significant energy performance improvements.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2638/all-info