Supporting Small Affordable Housing Developers Act
Excludes certain affordable-housing grants, tax-credit sale proceeds and forgiven loans from eligible developers’ taxable income.
In the Senate Finance Committee since Sept. 23, 2026, 15 days after it was introduced. Most bills never leave committee.
- INTRODUCEDINTROSEP 23, 2026
- COMMITTEECOMM.IN COMMITTEE
- SENATESENATE—
- HOUSEHOUSE—
- LAWLAW—
What the bill would do, and why it matters
Affordable housing development can involve grants, tax credits and loans. The bill would change federal tax rules for eligible businesses, excluding certain housing grants, credit-sale proceeds and forgiven loans from income while barring credit buyers from deducting their purchase costs.
- INTRODUCED ONLY This bill has been introduced and possibly referred to a committee, but it has not passed any vote. Most introduced bills never become law — they die in committee without a hearing.
- DATA NOTE No Congressional Research Service summary was available.
- Excludes housing grants and credit-sale cash
Eligible taxpayers would not include in gross income qualifying grants for developing or rehabilitating affordable housing, or cash received from selling transferable state or local affordable-housing tax credits. Eligible taxpayers must meet a gross-receipts test and conduct a business covered by one of four listed industry codes.
- Allows relief for certain canceled housing loans
An eligible taxpayer could exclude discharged debt from a qualifying loan used to develop or rehabilitate affordable housing, if the loan came from a government or tax-exempt nonprofit. The bill also applies tax-attribute reduction rules to this debt relief.
- Bars buyers from deducting credit purchase costs
A taxpayer buying a transferable affordable-housing tax credit could not deduct the amount paid to acquire it.
- Adds tribal-government tax references
The bill adds references to Indian tribal governments in the tax-code provisions covering the new affordable-housing grant and loan rules.
The bill focuses on the tax treatment of money used to develop or rehabilitate affordable housing. Its practical effect would be to change the federal income-tax treatment of certain grants, credit-sale proceeds and canceled loans for eligible taxpayers, as well as the deductions available to credit buyers.
Written from the bill text.
The path it took, step by step
- IntroducedSEP 23, 2026SENATESEP 23, 2026By Sen. WelchReferred to Finance
- SAME DAYNOWSenate committeeSEP 23, 2026FINANCE NOWSEP 23, 2026In committee for 15 daysNo hearing yet
- 15 DAYS SO FARPassed the Senate—SENATE FLOOR—Not scheduled
- House committee—HOUSE—
- Passed the House—HOUSE FLOOR—Not scheduled
- Resolve differencesONLY IF NEEDEDBOTH CHAMBERSONLY IF NEEDEDSkipped if the other chamber passes the same text
- Signed into law—PRESIDENT—10 days to sign or veto
- SEP 232026SEP 23, 2026REFERREDRead twice and referred to the Committee on Finance.
- SEP 232026SEP 23, 2026INTRODUCEDSENATEIntroduced in Senate
At day 15, this bill is already older than 4% of the laws passed this Congress were when they were signed.
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