The Housing Credit is Pro-Growth Tax Policy

The Housing Credit:

The #1 Way Affordable Housing is Financed

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 people who were formerly homeless.

The AHCIA:

Legislation to Provide 2 Million More Affordable Homes

The Affordable Housing Credit Improvement Act (AHCIA, S. 1557/H.R. 3238) is bipartisan legislation to strengthen the Housing Credit and provide nearly 2 million additional affordable homes over the next 10 years, generating nearly 3 million jobs, $333 billion in wages and business income, and $115 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.

Affordable Housing Drives Economic Growth

4 million

Homes Developed or Preserved

6.6 million

Jobs Supported for One Year

$268 billion

Tax Revenue Generated

$746.5 billion

Wages & Business Income Generated

An Essential Part of Pro-Growth Tax Policy

Engagement with the Ways and Means Committee Republican Tax Teams

As Congress gears up to extend over $4 trillion worth of expiring tax cuts from the Tax Cuts and Jobs Act, the AHTCC has been engaging with the House Ways and Means Committee’s Republican Tax Teams to showcase the Housing Credit as pro-growth-tax policy

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, including increasing the Housing Credit allocation and lowering the 50 percent bond financing test. 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.

In September 2024, Ways and Means Community Development Tax Team member and AHCIA Lead House Sponsor Rep. Darin LaHood (R-IL-16) visits site construction of Low-Income Housing Tax Credit (Housing Credit) homes in Bloomington, Illinois with AHTCC Leadership and local officials.

In July, the AHTCC facilitated a site visit of a Housing Credit property in Washington, DC for House Ways and Means Committee Community Development Tax Team members.

This site visit was part of the educational efforts to inform the Tax Team about credits in their jurisdiction. During the visit, Community Development Tax Team Chair Mike Kelly (R-PA-16), Rep. Blake Moore (R-UT-1), and staff from the other Tax Team member offices and Ways and Means Committee staff were in attendance for a briefing and Husing Credit property tour.  In press releases from Rep. Mike Kelly (R-PA-16) and the House Ways and Means Committee about the site visit, the Housing Credit was described 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.”

Providing Meaningful Rent Savings for Residents

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

38%

Lower Rents On Average

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

$7,800+

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