Legislative and Regulatory Priorities

Since 1988, the Affordable Housing Tax Credit Coalition (AHTCC) has been at the forefront of efforts to protect, strengthen, and expand the Low-Income Housing Tax Credit (Housing Credit). In 2025, two of the AHTCC’s top priorities were enacted into law, providing an expansion of the program estimated to finance 1.2 million more affordable homes over the next decade than otherwise possible. In 2026, the AHTCC is looking to build on this success by further strengthening the program through the following priorities:

1

We urge Congress to increase affordable rental housing production by further strengthening the Housing Credit. We encourage enactment of the remaining proposals included in the Affordable Housing Credit Improvement Act (AHCIA), comprehensive, bipartisan legislation to expand and strengthen the Housing Credit. We especially urge Congress to consider the proposals in the AHCIA with the greatest impact on production, including new basis boosts for underserved areas and populations, such as rural communities, and expanded multifamily bond recycling.

2

In addition to the AHCIA proposals listed above, the AHTCC supports enactment of other policies to support a robust Housing Credit investment market. The AHTCC supports the proposal to lift banks’ public welfare investment cap to enable increased investment in affordable housing. The AHTCC also supports changes to the tax code to promote investment, including allowing Housing Credits to be carried back for a longer period, and easing the general business credit limitation on the ability to use Housing Credits. The AHTCC may also advocate for other new policies to increase the capacity of current investors and attract new investors to the Housing Credit in order to take full advantage of the recent expansion of the program.

3

We urge the Trump Administration to protect Housing Credit investment through any changes to the Community Reinvestment Act regulations, lower Housing Credit risk weighting as part of the Basel III framework, and otherwise support affordable housing investment in any other regulations that may directly or indirectly impact the Housing Credit, such as Build America, Buy America regulations.

4

We encourage the Internal Revenue Service to continue to provide Housing Credit regulatory flexibilities that improve our ability to finance, develop and operate affordable housing. In addition to flexibilities that may be needed to address continued barriers and challenges as they arise, we encourage the IRS to enact any AHCIA policy proposals that are within the IRS’ purview.