May 14

Housing Credit Priorities Advance Through the House Ways and Means Committee

Today key Housing Credit priorities advanced through the House Ways and Means Committee on a party line vote of 26-19 during a markup of the tax bill Republicans aim to pass through reconciliation. If enacted, this would be the largest investment in the Housing Credit in decades and provide affordable homes for hundreds of thousands of families.

The following provisions to expand the Housing Credit are included in the legislation:

  • Restoring the 12.5% Housing Credit allocation increase for 2026 – 2029,
  • Lowering the 50% private-activity bond threshold test to 25% for obligations made after December 31, 2025, and before January 1, 2030, and
  • Providing a 30% basis boost for buildings in rural and Native American communities placed in service after December 31, 2025 and before January 1, 2030.

These proposals were introduced as part of the Affordable Housing Credit Improvement Act of 2025 (AHCIA, H.R.2725/S.1515), a bipartisan bill that would finance nearly 1.6 million more affordable rental homes in the next decade than otherwise possible. The AHCIA was reintroduced in both the House and Senate last month. Already, the legislation has gained more than 130 bipartisan cosponsors in the House and 36 bipartisan cosponsors in the Senate, including nearly two-thirds of the Senate Finance Committee, in all representing 46 states.

The House tax package approved today also includes several provisions impacting affordable housing and community development beyond the Housing Credit, including:

  • Enhancements and a renewal of Opportunity Zones (OZ), including a new requirement that a minimum share of new OZ designations be located in rural areas.
  • Repeal of certain Inflation Reduction Act (IRA) energy credits, including the 45L new energy efficient home credit, and elimination of the transferability of select energy credits.
  • Extension of the Base Erosion and Anti-Abuse Tax (BEAT) minimum tax amount.
  • Reinstatement of 100% bonus depreciation.

House leadership is continuing to work towards finalizing and passing its reconciliation package before Memorial Day, with the goal of having a comprehensive bill advancing President Trump’s domestic priorities on his desk by July 4.