Affordable Housing Credit Improvement Act of 2025 | ChamberLight
Bills · S 1515
IN COMMITTEE· 119TH CONGRESS
Senate BillS 1515Taxation
Affordable Housing Credit Improvement Act of 2025
INTRO APR 29· LAST ACTION APR 29
READING
34MIN
COSPONSORS
41BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
The availability of affordable housing is a critical issue nationwide, with many communities facing shortages of homes that low-income individuals and families can afford. This bill directly addresses this by expanding the primary federal tool for creating affordable rental housing.
If this bill becomes law, it could lead to a substantial increase in the construction and renovation of affordable housing units, potentially making it easier for people to find safe, stable, and affordable places to live. If it doesn't pass, the existing challenges in financing and developing affordable housing would likely continue, potentially exacerbating current housing affordability crises in many parts of the country.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Increases the annual amount of Low-Income Housing Tax Credits (LIHTC) that states can award to affordable housing projects.
This makes more federal funding available for building and preserving affordable housing across the nation.
PROVISION 02
Modifies rules for student occupancy, potentially allowing a broader range of students to live in LIHTC-supported housing.
This could expand housing options for students from low-income backgrounds.
PROVISION 03
Requires LIHTC-supported housing to protect victims of domestic abuse.
This provides crucial safety measures and stable housing options for vulnerable individuals.
PROVISION 04
Includes Native American areas and rural areas as 'difficult development areas,' making projects in these regions eligible for higher tax credits.
This encourages more affordable housing development in underserved and economically challenged communities.
PROVISION 05
Applies the 'average income test' to exempt facility bonds, providing more flexibility for projects that use this type of financing.
This expands options for developers to finance affordable housing projects with different income mixes.
The availability of affordable housing is a critical issue nationwide, with many communities facing shortages of homes that low-income individuals and families can afford. This bill directly addresses this by expanding the primary federal tool for creating affordable rental housing.
If this bill becomes law, it could lead to a substantial increase in the construction and renovation of affordable housing units, potentially making it easier for people to find safe, stable, and affordable places to live. If it doesn't pass, the existing challenges in financing and developing affordable housing would likely continue, potentially exacerbating current housing affordability crises in many parts of the country.
KEY PROVISIONS
AI-extracted
high
Increases the annual amount of Low-Income Housing Tax Credits (LIHTC) that states can award to affordable housing projects.
This makes more federal funding available for building and preserving affordable housing across the nation.
med
Modifies rules for student occupancy, potentially allowing a broader range of students to live in LIHTC-supported housing.
This could expand housing options for students from low-income backgrounds.
high
Requires LIHTC-supported housing to protect victims of domestic abuse.
This provides crucial safety measures and stable housing options for vulnerable individuals.
high
Includes Native American areas and rural areas as 'difficult development areas,' making projects in these regions eligible for higher tax credits.
This encourages more affordable housing development in underserved and economically challenged communities.
med
Applies the 'average income test' to exempt facility bonds, providing more flexibility for projects that use this type of financing.
This expands options for developers to finance affordable housing projects with different income mixes.
Changes to State allocations for the Low-Income Housing Tax Credit apply to calendar years
after March 23, 2018
Amendments related to the average income test for exempt facility bonds apply to elections made under section 142(d)(1) of the Internal Revenue Code of 1986
2025
Specific per capita amount for calendar year
2026
Specific per capita amount for calendar year
2025
Specific minimum amount for calendar year
2026
Specific minimum amount for calendar year
GLOSSARY
AI-written
Low-Income Housing Tax Credit (LIHTC)
A federal tax credit program designed to encourage private investors to finance the development and rehabilitation of affordable rental housing for low-income households.
Internal Revenue Code of 1986
The official compilation of federal tax laws in the United States.
State Allocation Formulas
The methods by which the federal government determines how much Low-Income Housing Tax Credit funding each state receives annually to distribute for housing projects.
Average Income Test
A rule used to determine if a housing project qualifies for tax credits by ensuring a certain percentage of its units are rented to tenants whose average income falls below a specified limit.
Exempt Facility Bonds
A type of tax-exempt bond issued by state or local governments to finance certain private projects, including qualified residential rental projects like affordable housing.
Difficult Development Areas
Specific geographic areas, designated by the government, where construction costs are high or incomes are low, making it harder to develop affordable housing. Projects in these areas often receive higher tax credits.
ACTION TIMELINE
2 EVENTS
APR 29, 25
Introduced in Senate
INTROREFERRAL
APR 29, 25
Read twice and referred to the Committee on Finance.
