Legislative and Regulatory Priorities

Since 1988, the AHTCC has been at the forefront of efforts to protect, strengthen, and expand the Low-Income Housing Tax Credit (Housing Credit). In 2024, the AHTCC focused on the below priorities.

1

We urge Congress to increase affordable rental housing production by expanding and strengthening the Housing Credit. We encourage enactment of the proposals included in the Affordable Housing Credit Improvement Act (AHCIA), comprehensive, bipartisan legislation to expand and strengthen the Housing Credit. We especially urge immediate enactment of the Housing Credit production proposals in the AHCIA with the greatest impact, which were included in the bipartisan Tax Relief for American Families and Workers Act of 2024:

  • Restoring the temporary 12.5 percent allocation increase that has now expired, and
  • Lowering the bond financing threshold test.

2

Recognizing that major tax legislation is likely in 2025, the AHTCC will work with industry partners and congressional allies to modernize the AHCIA and begin laying the groundwork for investments in affordable housing as part of 2025 tax legislation. We will also continue to build our defense of the Housing Credit and Private Activity Bonds in case of any threat in tax reform.

3

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, we encourage the IRS to enact any AHCIA policy proposals that are within the IRS’ purview and address other issues as they arise.

4

We urge the Biden Administration to protect Housing Credit investment through Community Reinvestment Act reforms, Pillar 2 rules implementing a global minimum tax, or any other regulations that may directly or indirectly impact the Housing Credit. CRA motivates the vast majority of investment in the Housing Credit – an estimated 73 percent – meaning any changes to CRA could significantly impact our ability to build and preserve affordable housing.

5

We will engage with policymakers throughout the election year to demonstrate the value of the Housing Credit in their home states and districts and encourage candidates for elected office to include the Housing Credit in their housing policy proposals.