The reconciliation bill that passed the House on May 22, the One Big Beautiful Bill Act, H.R. 1, includes provisions that LeadingAge supports to expand and improve the Low-Income Housing Tax Credit (LIHTC) program.

According to the National Council of State Housing Agencies, whose state housing finance agency members administer state LIHTC allocations, the bill “represents the largest increase in Housing Credit resources since Congress raised the caps on Housing Credits and Private Activity Bonds and indexed the caps for inflation 25 years ago.”

The bill would increase the LIHTC volume cap for 9% properties by 12.5% for four years: calendar years 2026, 2027, 2028, and 2029; lower the bond financing threshold to 25% for 4% LIHTC properties placed in service after December 31, 2025, so long as the bonds financing the project have an issue date between December 31, 2025, and January 1, 2030; and allow state agencies to provide a basis boost of up to 30% for properties located in rural and Native American areas placed in service after December 31, 2025, and before January 1, 2030.

According to the Joint Committee on Taxation, these LIHTC changes will cost $14.1 billion over 10 years and, according to Novogradac, will result in about 527,000 homes.

Despite our support for these provisions, LeadingAge continues to find much more harm than good in H.R. 1 and continues to work to ensure the Senate does not follow the House reconciliation bill’s lead.

Members can follow all Budget Reconciliation 2025 developments through this serial post.