The Low-Income Housing Tax Credit (Housing Credit) is our nation’s primary tool for financing affordable rental housing in rural, suburban, and urban communities alike. A successful public-private partnership, the Housing Credit has financed 4 million affordable homes since 1986, serving 9.28 million low-income households, including families, veterans, seniors, people with disabilities, and those who were formerly homeless.

The Affordable Housing Credit Improvement Act (AHCIA, H.R. 2725, S.1515) is bipartisan legislation to strengthen the Housing Credit and provide nearly 1.6 million additional affordable homes over the next 10 years, generating nearly 2.4 million jobs, $271 billion in wages and business income, and $94 billion in tax revenue, according to the ACTION Campaign. Congress should enact the AHCIA to ensure the Housing Credit can serve more low-income households.

Homes Developed or Preserved

Jobs Supported for One Year

Tax Revenue Generated

Wages & Business Income Generated

The AHTCC urges Congress to enact legislation that expands and strengthens the Housing Credit as part of broader tax legislation this year. As Republicans in Congress work towards enacting pro-growth tax policy that brings down costs for American families, the AHTCC continues to raise key provisions from the bipartisan Affordable Housing Credit Improvement Act (AHCIA), including:

1. Restoring and expanding upon the 12.5 percent Housing Credit allocation increase enacted under President Trump in 2018 that expired in 2021.
2. Lowering the required private activity bond financing threshold test for accessing four percent Housing Credits to allow states to make more efficient use of bond volume cap.

In the 118th Congress, these provisions were included in the bipartisan Tax Relief for American Families and Workers Act (H.R. 7024) which passed by an overwhelming majority in the House of Representatives. In addition to these two key provisions, the AHCIA also contains additional proposals that strengthen the Housing Credit as a tool for affordable housing production, including a basis boost in rural areas.

The AHCIA of 2025 has been introduced with the support of over one-fourth of Congress as original cosponsors, including key members of the House Ways and Means Committee, Senate Finance Committee, and Republican leadership. These supporters in the House and Senate represent over 30 states in rural, suburban, and urban areas of the country.

With Republican leadership working to pass tax legislation through reconciliation, this is a key opportunity to build on the momentum behind Housing Credit priorities. Senate Finance Committee Chairman Mike Crapo (R-ID) has indicated the Housing Credit is part of the conversation, saying in a recent East Idaho News interview, “We are working on a really aggressive tax bill to help keep people’s taxes low… Part of that is to provide extra funding for projects that help get access to capital into the housing industry, like the low-income housing tax credit, which is something that could be a phenomenal boost to getting the housing that we need.” 

In the summer of 2024, the AHTCC facilitated site visits of Housing Credit properties for House Ways and Means Committee Community Development Tax Team members Reps. Mike Kelly (R-PA), Darin LaHood (R-IL), Mike Carey (R-OH), Blake Moore (R-UT) and Claudia Tenney (R-NY).

Press releases from Rep. Mike Kelly (R-PA-16) and the House Ways and Means Committee following one of the site visits, described the Housing Credit as “pro-growth” tax policy: “During this tour, we were able to see the real impact power of pro-growth tax policy and how it can create affordable housing for millions of Americans,” Rep. Kelly said. “As we prepare for the 2025 tax talks, visits like these are vital so we can see first-hand just how these policies are impacting Americans both today and for generations to come.”

In October 2024, the AHTCC submitted comments to the House Ways and Means Committee’s Republican Tax Teams in response to the request for feedback on 2025 tax legislation. The AHTCC’s comments urged Congress to take action to expand and strengthen the Housing Credit program in future tax legislation and outlines key provisions from the Affordable Housing Credit Improvement Act (AHCIA) that we encourage the committee to consider. The Housing Credit has a nearly 40-year track record as the most effective tool we have for addressing the affordable housing crisis and generating economic growth.

New AHTCC Research finds The Low-Income Housing Tax Credit Offers
Substantial Rent Savings to Residents

Lower Rents On Average

Across 80 U.S. metro areas, Housing Credit rents are significantly more affordable than market rates.

Average Yearly Savings

Providing meaningful savings and economic stability for households

“The numbers underscore that the Housing Credit does not just expand the country’s affordable housing supply, but also directly supports household well-being and economic security, which in turn stimulates the economy.”

Emily Cadik, AHTCC CEO