The bipartisan Affordable Housing Credit Improvement Act (AHCIA, H.R. 2725, S.1515) is comprehensive legislation to expand and strengthen the Low-Income Housing Tax Credit (Housing Credit), 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, and the AHCIA would produce or preserve nearly 1.6 million additional affordable homes over the next 10 years.

Since it was first introduced in 2016, the AHCIA has gained strong, bipartisan support. The AHCIA of 2025 had over 100 original cosponsors (59 Republican and 58 Democratic), representing over 30 states and over a quarter of the House of Representatives, and 30 original cosponsors representing 25 states upon reintroduction in the Seante. In the 118th Congress, the AHCIA was cosponsored by well over half of Congress.

Through successful public-private partnerships, the Housing Credit offers a proven track record of financing 4 million safe, decent, affordable homes in rural, suburban, and urban areas, serving 9.28 million households since 1986. Residents are families with children, seniors, veterans, people with disabilities, and low-wage workers. These homes provide residents with meaningful rent savings compared to market-rate homes which can be redirected toward other essential household needs, such as health care, groceries, transportation, and childcare.

The AHCIA of 2025 builds on prior versions of the AHCIA that have earned widespread bipartisan support since first introduced in 2016. Several key pieces of this legislation have been enacted, including a temporary 12.5 percent Housing Credit allocation increase in 2018 under the first Trump Administration and allowed to expire at the end of 2021. However, the key provisions that would have the greatest impact on affordable housing production are still in critical need of enactment.

The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) included two Housing Credit provisions derived from the AHCIA to restore the 12.5 percent allocation increase that expired in 2021 and reduce the private activity bond threshold requirement from 50 to 30 percent. The legislation passed in the House of Representatives with overwhelming bipartisan support in February 2024 but failed to advance in the Senate. Read more here.

The AHCIA includes additional provisions that would further strengthen the Housing Credit. For more information, read the details of the AHCIA of 2025 and the differences between the AHCIA of 2023 and 2025.