The House Ways & Means Committee’s reconciliation bill, which was released on May 12 and will be marked up in Committee on May 13, includes provisions that benefit and support the development and preservation of affordable housing through the Low-Income Housing Tax Credit program.

The provisions would extend the 12.5% increase to the 9% Housing Credit that expired in 2021 from 2026 through 2029, and would lower the 50% test for bond-financed 4% Housing Credit properties for obligations made after December 31, 2025 and before January 1, 2030. These provisions were included in a bill that passed the House in January 2024, during the previous session of Congress, but did not pass the Senate. At that time, it was estimated that these two provisions would lead to the financing of an additional 200,000 homes nationwide over the next 10 years.

The Ways & Means Committee bill would also create two new 30% basis boosts: for properties in rural and tribal communities that are placed in service from 2026 to 2029.

LeadingAge strongly supports these improvements to the Housing Credit program.

See materials for the May 13 Committee markup.