The AHTCC submitted comments in response to two recent House Ways and Means Committee hearings regarding 2025 tax legislation. One hearing titled, “The Need to Make Permanent the Trump Tax Cuts for Working Families,” included discussion on extending provisions from the 2017 Tax Cuts and Jobs Act, which was enacted during President Trump’s first term. The AHTCC leveraged this opportunity to raise Housing Credit priorities, including the restoration of the now-expired 12.5 percent allocation increase enacted in the first Trump Administration. The committee also held a “Member Day Hearing on Matters Within the Committee’s Tax Jurisdiction,” during which several of Congressional allies, including Reps. Houchin (R-IN), Kim (R-CA), and Cleaver (D-MO) spoke in favor of the Housing Credit and the Affordable Housing Credit Improvement Act (AHCIA) to members of the committee.
During the Member Day Hearing, Rep. Erin Houchin (R-IN) described the Housing Credit as “the most important and powerful tool from the federal level for the development of affordable housing” and encouraged the committee to consider expanding and improving the program through the AHCIA. Similarly, Rep. Young Kim (R-CA) highlighted her strong support for the AHCIA, stating that it would “finance more affordable housing by expanding and strengthening the Low-Income Housing Tax Credit.” Additionally, Rep. Emanuel Cleaver (D-MO) underscored the Housing Credit’s impact, calling it “the most effective affordable rental housing program in history” in testimony focused on the housing affordability crisis. These remarks underscore the bipartisan recognition of the Housing Credit’s critical role in addressing the nation’s housing affordability challenges.
The AHTCC’s comments urge Congress to enact legislation that expands and strengthens the Housing Credit as part of broader tax legislation needed this year due to the expiration of trillions of dollars’ worth of tax cuts. As Republicans in Congress embrace pro-growth tax policies, like the Housing Credit, to support the economic success of hardworking Americans, the AHTCC continues to raise key provisions from the bipartisan AHCIA, including:
- Restoring and expanding upon the 12.5 percent Housing Credit allocation increase enacted under President Trump in 2018 that expired in 2021, and
- 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.
Congress has demonstrated widespread bipartisan support for these provisions, which positions them well for inclusion in tax legislation aiming to lower costs for Americans. In the 118th Congress, they were passed by an overwhelming majority in the House of Representatives as part of the 2024 bipartisan Tax Relief for American Families and Workers Act. The AHCIA also gained the support of over half of Congress, including over a quarter of Senate Republicans and over half of all House Republicans. The AHCIA contains additional key priorities that strengthen the Housing Credit as a tool for affordable housing production, including a basis boost in rural areas. The AHTCC’s comments to the Ways and Means Committee outline these additional priorities and underscore the growing need to enact long overdue legislation to support affordable housing development across the nation.
Read the AHTCC’s statements below.
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