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American Affordability Act of 2025
Introduced Dec 18, 2025 · Last action Dec 18, 2025 — Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Summary
This legislation is called the American Affordability Act of 2025. It is being reviewed by a committee.
Full bill text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6900 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6900
To amend the Internal Revenue Code of 1986 to address the nation's
cost-of-living crisis.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 18, 2025
Mr. Thompson of California (for himself, Mr. Larson of Connecticut, Mr.
Davis of Illinois, Ms. Sanchez, Ms. Sewell, Ms. DelBene, Ms. Chu, Ms.
Moore of Wisconsin, Mr. Boyle of Pennsylvania, Mr. Beyer, Mr. Evans of
Pennsylvania, Mr. Schneider, Mr. Panetta, Mr. Gomez, Mr. Horsford, Ms.
Plaskett, Mr. Suozzi, Mr. Bell, Ms. Craig, Ms. DeLauro, Mr. Garamendi,
Mr. Goldman of New York, Ms. Johnson of Texas, Mr. Kennedy of New York,
Ms. Matsui, Ms. McBride, Ms. McDonald Rivet, Mr. McGarvey, Mr. Mrvan,
Mr. Quigley, Ms. Salinas, Ms. Titus, and Ms. Scholten) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Education and Workforce, and
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to address the nation's
cost-of-living crisis.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``American
Affordability Act of 2025''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment is expressed in terms of an
amendment to a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--HOUSING AND MUNICIPAL INFRASTRUCTURE
Subtitle A--Low-income Housing Credit
Part 1--Reform of State Allocation Formulas
Sec. 11101. Increases in State allocations.
Part 2--Reforms Relating to Tenant Eligibility
Sec. 11201. Average income test applicability to exempt facility bonds.
Sec. 11202. Codification of rules relating to increased tenant income.
Sec. 11203. Modification of student occupancy rules.
Sec. 11204. Tenant voucher payments taken into account as rent for
certain purposes.
Sec. 11205. Requirement that low-income housing credit-supported
housing protect victims of domestic abuse.
Sec. 11206. Clarification of general public use requirement relating to
veterans, etc.
Part 3--Rules Relating to Credit Eligibility and Determination
Sec. 11301. Reconstruction or replacement period after casualty loss.
Sec. 11302. Modification of previous ownership rules; limitation on
acquisition basis.
Sec. 11303. Certain relocation costs taken into account as
rehabilitation expenditures.
Sec. 11304. Repeal of qualified census tract population cap.
Sec. 11305. Determination of community revitalization plan to be made
by housing credit agency.
Sec. 11306. Prohibition of local approval and contribution
requirements.
Sec. 11307. Increase in credit for certain projects designated to serve
extremely low-income households.
Sec. 11308. Increase in credit for bond-financed projects designated by
State agency.
Sec. 11309. Elimination of basis reduction for low-income housing
properties energy efficient commercial
building deduction.
Sec. 11310. Restriction of planned foreclosures.
Sec. 11311. Increase of population cap for difficult development areas.
Sec. 11312. Increased cost oversight and accountability.
Part 4--Reforms Relating to Native American Assistance
Sec. 11401. Selection criteria under qualified allocation plans.
Sec. 11402. Inclusion of Indian areas as difficult development areas
for purposes of certain buildings.
Part 5--Reforms Relating to Rural Assistance
Sec. 11501. Inclusion of rural areas as difficult development areas.
Sec. 11502. Uniform income eligibility for rural projects.
Part 6--Exempt Facility Bonds
Sec. 11601. Revision and clarification of the treatment of refunding
issues.
Part 7--Reforms Relating to Disabled Veterans
Sec. 11701. Treatment of veteran disability compensation or pension
payments for purposes of low income housing
tax credit and residential rental project
bonds.
Part 8--Reforms Relating to Certain Other Populations
Sec. 11801. Additional housing credit allocations for certain
populations who face unique barriers to
affordable housing.
Part 9--Qualified Contracts and Right of First Refusal
Sec. 11901. Repeal of qualified contract option.
Sec. 11902. Modification and clarification of rights relating to
building purchase.
Subtitle B--Additional Housing Incentives
Sec. 12001. Investment credit for conversion of non-residential
buildings to affordable housing.
Sec. 12002. Neighborhood homes credit.
Sec. 12003. Modification of historic rehabilitation tax credit.
Sec. 12004. Increase of exclusion of gain from sale of principal
residence.
Sec. 12005. Middle-income housing tax credit.
Subtitle C--Affording the American Dream
Sec. 13001. First-time homebuyer refundable tax credit.
Sec. 13002. Refundable credit for rent paid for principal residence.
TITLE II--LOWERING ENERGY COSTS
Subtitle A--Lowering Costs Through an All-of-the-above Energy Policy
Sec. 21001. Clean energy production credit.
Sec. 21002. Clean electricity investment credit.
Sec. 21003. Advanced manufacturing production credit.
Sec. 21004. Repeal of restriction on the extension of advance energy
project credit program.
Sec. 21005. Reversion of construction date for clean hydrogen
production credit.
Sec. 21006. Reversion of termination for residential clean energy
credit.
Sec. 21007. Reinstatement of special rate for sustainable aviation
fuel.
Subtitle B--Lowering Costs Through Energy Efficiency
Sec. 22001. Energy efficient home improvement credit.
Sec. 22002. New energy efficient home credit.
Sec. 22003. Repeal of termination of new energy efficient commercial
buildings deduction.
Sec. 22004. Restoration of cost recovery for energy property.
Subtitle C--Lowering Costs for Electric Vehicles and Charging
Infrastructure
Sec. 23001. Reversion of termination date for previously-owned vehicle
credit.
Sec. 23002. Reversion of termination date for clean vehicle credit.
Sec. 23003. Qualified commercial clean vehicles credit.
Sec. 23004. Reversion of termination date for alternative fuel vehicle
refueling property credit.
Sec. 23005. Credit for certain new electric bicycles.
Subtitle D--Lowering Costs of Clean Infrastructure and Resiliency
Sec. 24001. Qualifying water reuse project credit.
Sec. 24002. Recycling property investment credit.
Sec. 24003. Exclusion of amounts received from State-based catastrophe
loss mitigation programs.
Sec. 24004. Exclusion from gross income of certain emergency
agricultural assistance.
Sec. 24005. Credit for disaster mitigation expenditures.
Sec. 24006. Establishment of electric power transmission line credit.
Sec. 24007. Qualifying advanced battery project credit.
TITLE III--CHILD AND DEPENDENT CARE
Subtitle A--Child Tax Credit
Sec. 31001. Establishment of refundable child tax credit with monthly
advance payment.
Subtitle B--Child and Dependent Care
Sec. 32001. Enhancement of Child and Dependent Care Tax Credit.
Sec. 32002. Increased maximum contribution to dependent care assistance
programs.
Sec. 32003. Credit for working family caregivers.
Sec. 32004. Licensed family child care credit.
Subtitle C--Ensuring Affordable Adoptions
Sec. 33001. Refundable adoption tax credit.
TITLE IV--EDUCATION AND WORKFORCE TRAINING
Subtitle A--Ensuring Affordable Higher Education
Sec. 41001. American opportunity credit expanded to 6 years, made
temporarily fully refundable.
Sec. 41002. Expansion of Pell Grant exclusion from gross income.
Sec. 41003. Expansion of American Opportunity and Lifetime Learning
Credits.
Sec. 41004. Elimination of denial of American Opportunity Tax Credit
for students convicted of a felony drug
offense.
Sec. 41005. Modification of treatment of student loan forgiveness.
Sec. 41006. Student loan interest deduction limitation applied
separately to each spouse.
Subtitle B--Supporting Our Workforce
Sec. 42001. Educator expense deduction to include early childhood
educators.
Sec. 42002. Allowance of deduction for certain expenses of the trade or
business of being an employee.
Sec. 42003. Modification of deduction for cash tips.
Sec. 42004. Deduction for certain overtime compensation.
Sec. 42005. Above-the-line deduction of expenses of performing artists.
Sec. 42006. Permanent extension of earned income credit rules for
individuals without qualifying children.
Sec. 42007. Application of earned income credit to possessions of the
United States.
Sec. 42008. Election to use prior year earned income for earned income
tax credit.
TITLE V--HEALTHCARE
Sec. 50001. Increase in eligibility for health insurance premium
assistance tax credit.
Sec. 50002. Filling the coverage gap.
Sec. 50003. Freeze of premium adjustment percentage increase.
Sec. 50004. Requiring coverage of certain immunizations recommended by
the Advisory Committee on Immunization
Practices.
TITLE I--HOUSING AND MUNICIPAL INFRASTRUCTURE
Subtitle A--Low-income Housing Credit
PART 1--REFORM OF STATE ALLOCATION FORMULAS
SEC. 11101. INCREASES IN STATE ALLOCATIONS.
(a) In General.--Clause (ii) of section 42(h)(3)(C) of the Internal
Revenue Code of 1986 is amended--
(1) in subclause (I), by striking ``$1.75'' and inserting
``the per capita amount'', and
(2) in subclause (II), by striking ``$2,000,000'' and
inserting ``the minimum amount''.
(b) Per Capita Amount; Minimum Amount.--Section 42(h)(3) of the
Internal Revenue Code of 1986 is amended by striking subparagraphs (H)
and (I) and inserting the following:
``(H) Per capita amount.--For purposes of
subparagraph (C)(ii)(I), the per capita amount shall be
determined as follows:
``(i) Calendar year 2026.--For calendar
year 2026, the per capita amount is $4.25.
``(ii) Calendar year 2027.--For calendar
year 2027, the per capita amount is the product
of--
``(I) 1.25, and
``(II) the dollar amount under
clause (i) increased by an amount equal
to--
``(aa) such dollar amount,
multiplied by
``(bb) the cost-of-living
adjustment determined under
section 1(f)(3) for such
calendar year, determined by
substituting `calendar year
2025' for `calendar year 2016'
in subparagraph (A)(ii)
thereof.
If the amount determined after
application of the preceding sentence
is not a multiple of $5,000, such
amount shall be rounded to the next
lowest multiple of $5,000.
``(iii) Calendar years after 2027.--In the
case of any calendar year after 2027, the per
capita amount is the dollar amount determined
under clause (ii) increased by an amount equal
to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2026' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
Any amount increased under the preceding
sentence which is not a multiple of 5 cents
shall be rounded to the next lowest multiple of
5 cents.
``(I) Minimum amount.--For purposes of subparagraph
(C)(ii)(II), the minimum amount shall be determined as
follows:
``(i) Calendar year 2026.--For calendar
year 2026, the minimum amount is $4,876,000.
``(ii) Calendar year 2027.--For calendar
year 2027, the minimum amount is the product
of--
``(I) 1.25, and
``(II) the dollar amount under
clause (i) increased by an amount equal
to--
``(aa) such dollar amount,
multiplied by
``(bb) the cost-of-living
adjustment determined under
section 1(f)(3) for such
calendar year, determined by
substituting `calendar year
2025' for `calendar year 2016'
in subparagraph (A)(ii)
thereof.
If the amount determined after
application of the preceding sentence
is not a multiple of 5 cents, such
amount shall be rounded to the next
lowest multiple of 5 cents.
``(iii) Calendar years after 2027.--In the
case of any calendar year after 2027, the
minimum amount is the dollar amount determined
under clause (ii) increased by an amount equal
to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2026' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
Any amount increased under the preceding
sentence which is not a multiple of $5,000
shall be rounded to the next lowest multiple of
$5,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2025.
PART 2--REFORMS RELATING TO TENANT ELIGIBILITY
SEC. 11201. AVERAGE INCOME TEST APPLICABILITY TO EXEMPT FACILITY BONDS.
(a) In General.--Paragraph (1) of section 142(d) is amended--
(1) by striking ``(A) or (B)'' and inserting ``(A), (B), or
(C)'', and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Average income test.--A project meets the
requirements of this subparagraph if it meets the
minimum requirements of section 42(g)(1)(C).''.
(b) Effective Date.--The amendments made by this section shall
apply to elections made under section 142(d)(1) of the Internal Revenue
Code of 1986 after March 23, 2018.
SEC. 11202. CODIFICATION OF RULES RELATING TO INCREASED TENANT INCOME.
(a) In General.--Clause (i) of section 42(g)(2)(D) is amended by
striking ``clauses (ii), (iii), and (iv)'' and all that follows and
inserting ``clauses (ii), (iii), (iv), and (vi), notwithstanding an
increase in the income of the occupants above the income limitation
applicable under paragraph (1)--
``(I) a low-income unit shall
continue to be treated as a low-income
unit if the income of such occupants
initially was 60 percent or less of
area median gross income and such unit
continues to be rent-restricted, and
``(II) a unit to which, at the time
of initial occupancy by such occupants,
any Federal, State, or local government
income restriction applied, and which
subsequently becomes part of a building
with respect to which rehabilitation
expenditures are taken into account
under subsection (e), shall be treated
as a low-income unit if the income of
such occupants initially was 60 percent
or less of area median gross income and
does not exceed 120 percent of area
median gross income as of the date of
acquisition of the property by the
taxpayer.''.
(b) Exception.--Subparagraph (D) of section 42(g)(2) is amended by
adding at the end the following new clause:
``(vi) Exception to rule relating to
increased tenant income.--In the case of an
occupant of a low-income unit who initially
qualified to occupy such unit by reason of
paragraph (1)(C) with an income in excess of 60
percent of area median gross income but not in
excess of 80 percent of area median gross
income, clause (i) shall be applied for
substituting `80 percent' for `60 percent' each
place it appears.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 11203. MODIFICATION OF STUDENT OCCUPANCY RULES.
(a) In General.--Subparagraph (D) of section 42(i)(3) is amended to
read as follows:
``(D) Rules relating to students.--
``(i) In general.--A unit occupied solely
by individuals who--
``(I) have not attained age 24, and
``(II) are enrolled in a full-time
course of study at an institution of
higher education (as defined in section
3304(f)),
shall not be treated as a low-income unit.
``(ii) Exception for certain federal
programs.--In the case of a federally-assisted
building (as defined in subsection
(d)(6)(C)(i)), clause (i) shall not apply to a
unit all of the occupants of which meet all
applicable requirements under the housing
program described in such subsection through
which the building is assisted, financed, or
operated.
``(iii) Other exceptions.--An individual
shall not be treated as described in clause (i)
if the individual meets the income limitation
applicable under subsection (g)(1) to the
project of which the building is a part and--
``(I) is married,
``(II) is a person with
disabilities (as defined in section
3(b)(3)(E) of the United States Housing
Act of 1937),
``(III) is a veteran (as defined in
section 101(2) of title 38, United
States Code),
``(IV) has 1 or more qualifying
children (as defined in section
152(c)),
``(V) is or has been a victim or
threatened victim of domestic violence,
dating violence, sexual assault, or
stalking (as defined in section 40002
of the Violence Against Women Act of
1994),
``(VI) is or has been a victim of
any form of human trafficking, or
``(VII) is, or was prior to
attaining the age of majority--
``(aa) an emancipated minor
or in legal guardianship as
determined by a court of
competent jurisdiction in the
individual's State of legal
residence,
``(bb) under the care and
placement responsibility of the
State agency responsible for
administering a plan under part
B or part E of title IV of the
Social Security Act, or
``(cc) an unaccompanied
youth (within the meaning of
section 725(6) of the McKinney-
Vento Homeless Assistance Act
(42 U.S.C. 11434a(6))) or a
homeless child or youth (within
the meaning of section 725(2)
of such Act (42 U.S.C.
11434a(2))).
For purposes of subclause (VI), an
individual is or has been a victim of
human trafficking if such individual
was subjected to an act or practice
described in paragraph (11) or (12) of
section 103 of the Trafficking Victims
Protection Act of 2000.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
SEC. 11204. TENANT VOUCHER PAYMENTS TAKEN INTO ACCOUNT AS RENT FOR
CERTAIN PURPOSES.
(a) In General.--Subparagraph (B) of section 42(g)(2) is amended by
adding at the end the following new sentence: ``In the case of a
project with respect to which the taxpayer elects the requirements of
subparagraph (C) of paragraph (1), or the portion of a project to which
subsection (d)(5)(C) applies, clause (i) shall not apply with respect
to any tenant-based assistance (as defined in section 8(f)(7) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(f)(7))).''.
(b) Effective Date.--The amendments made by this section shall
apply to rent paid in taxable years beginning after December 31, 2025.
SEC. 11205. REQUIREMENT THAT LOW-INCOME HOUSING CREDIT-SUPPORTED
HOUSING PROTECT VICTIMS OF DOMESTIC ABUSE.
(a) In General.--Subparagraph (B) of section 42(h)(6) is amended by
striking ``and'' at the end of clause (v), by striking the period at
the end of clause (vi) and inserting ``, and'', and by adding at the
end the following new clause:
``(vii) which--
``(I) prohibits the refusal to
lease to, or termination of a lease by,
a person solely on the basis of
criminal activity directly relating to
domestic violence, dating violence,
sexual assault, or stalking that is
engaged in by a member of the household
of the tenant or any guest or other
person under the control of the tenant,
if the tenant or an affiliated
individual of the tenant is the victim
or threatened victim of such domestic
violence, dating violence, sexual
assault, or stalking, and
``(II) allows prospective, present,
or former occupants of the building the
right to enforce in any State court the
prohibition of subclause (I).''.
(b) Bifurcation.--
(1) In general.--Subparagraph (B) of section 42(h)(6), as
amended by subsection (a), is further amended by adding at the
end the following new flush sentence:
``For purposes of clause (vii)(I), rules similar to the
rules of section 41411(b)(3)(B) of the Violence Against
Women Act of 1994 shall apply with respect to the owner
or manager of a building.''.
(2) Effect of bifurcation.--Paragraph (2) of section 42(g)
is amended by adding at the end the following new subparagraph:
``(F) Treatment of bifurcation in cases of domestic
violence.--In any case in which--
``(i) an occupant is evicted or removed
from a low-income unit because such occupant
has engaged in criminal activity directly
relating to domestic violence, dating violence,
sexual assault, or stalking against an
affiliated individual or other individual on
the basis of criminal activity directly
relating to domestic violence, dating violence,
sexual assault, or stalking, and
``(ii) the lease on such unit is bifurcated
as provided in the last sentence of subsection
(h)(6)(B),
then the remaining occupants of such low-income unit
shall not be treated as a new tenant for purposes of
this section.''.
(c) Clarification of General Public Use Requirement.--Paragraph (9)
of section 42(g) is amended by striking ``or'' at the end of
subparagraph (B), by striking the period at the end of subparagraph (C)
and inserting ``, or'', and by adding at the end the following new
subparagraph:
``(D) who are victims or threatened victims of
criminal activity directly relating to domestic
violence, dating violence, sexual assault, or
stalking.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to agreements
executed or modified on or after the date that is 30 days after
the date of the enactment of this Act.
(2) Public use requirement.--The amendments made by
subsection (c) shall apply to buildings placed in service
before, on, or after the date of the enactment of this Act.
SEC. 11206. CLARIFICATION OF GENERAL PUBLIC USE REQUIREMENT RELATING TO
VETERANS, ETC.
(a) In General.--Paragraph (9) of section 42(g), as amended by
section 11205, is further amended by adding at the end the following
flush language:
``Any veteran of the Armed Forces shall be treated as a member
of a specified group under a Federal program for purposes of
subparagraph (B).''.
(b) Qualified Residential Rental Projects.--Paragraph (2) of
section 142(d) is amended by adding at the end the following new
subparagraph:
``(F) Clarification of general public use
requirement.--A unit shall not fail to meet the general
public use requirement solely because of occupancy
restrictions or preferences, if such restrictions or
preferences meet the general public use requirement of
section 42.''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection (a) shall
apply to buildings placed in service before, on, or after the
date of the enactment of this Act.
(2) Qualified residential rental projects.--The amendment
made by subsection (b) shall apply to bonds issued before, on,
or after the date of the enactment of this Act.
PART 3--RULES RELATING TO CREDIT ELIGIBILITY AND DETERMINATION
SEC. 11301. RECONSTRUCTION OR REPLACEMENT PERIOD AFTER CASUALTY LOSS.
(a) No Recapture Following Casualty Loss.--Subparagraph (E) of
section 42(j)(4) is amended to read as follows:
``(E) No recapture by reason of casualty loss.--
``(i) In general.--The increase in tax
under this subsection shall not apply to a
reduction in qualified basis by reason of a
casualty loss to the extent such loss is
restored by reconstruction or replacement
within a reasonable period established by the
applicable housing credit agency, not to exceed
25 months from the date on which the qualified
casualty loss arises.
``(ii) Qualified casualty losses.--In the
case of a qualified casualty loss, the period
described in clause (i) may be extended, but
not in excess of 12 months, if the applicable
housing credit agency determines the qualified
casualty arose by reason of an event which was
not discrete to the building and which made a
reconstruction or replacement within 25 months
impractical. In the event the applicable
housing credit agency determines a period in
excess of 25 months is necessary for such
reconstruction or replacement, the compliance
period shall be increased by any such
additional time.
``(iii) Application.--The determination
under paragraph (1) shall not be made with
respect to a property the basis of which is
affected by a qualified casualty loss until the
period described in clause (i) (as modified by
clause (ii), if applicable) with respect to
such property has expired.
``(iv) Qualified casualty loss.--For
purposes of this subparagraph, the term
`qualified casualty loss' means a casualty loss
that is the result of a federally declared
disaster (as defined in section 165(i)(5)).''.
(b) Qualified Basis Following Casualty Loss.--Paragraph (1) of
section 42(c) is amended by adding at the end the following new
subparagraph:
``(F) Qualified basis following casualty loss.--If
a casualty causes the qualified basis of a building in
any year to be less than the qualified basis in the
immediately preceding year then, in the year of such
casualty and each succeeding year until such building
or the units affected by the casualty are reconstructed
or replaced (but only through the last year of the
period permitted for reconstruction or replacement
under subsection (j)(4)(E))--
``(i) the qualified basis of such building
shall be equal to the qualified basis of such
building as of the last day of the year
preceding the year in which such casualty
occurred,
``(ii) if such building is not
reconstructed or replaced by the expiration of
the applicable period for such reconstruction
or replacement under subsection (j)(4), then
the recapture amount provided for in subsection
(j)(1) shall include the amount of any credit
claimed under this section by reason of the
application of clause (i), and
``(iii) a building which was a qualified
low-income building as of the last day of the
year preceding the year in which such casualty
occurred shall not cease to be a qualified low-
income building solely because of such
casualty.''.
(c) Effective Date.--The amendments made by this section shall
apply to casualties occurring after December 31, 2025.
SEC. 11302. MODIFICATION OF PREVIOUS OWNERSHIP RULES; LIMITATION ON
ACQUISITION BASIS.
(a) In General.--Clause (ii) of section 42(d)(2)(B) is amended by
inserting ``, or the taxpayer elects the application of subparagraph
(C)(ii)'' after ``service''.
(b) Limitation on Acquisition Basis.--Subparagraph (C) of section
42(d)(2) is amended--
(1) by striking ``For purposes of subparagraph (A), the
adjusted basis'' and inserting ``For purposes of subparagraph
(A)--
``(i) In general.--The adjusted basis'',
and
(2) by adding at the end the following new clauses:
``(ii) Buildings in service within previous
10 years.--If the period between the date of
acquisition of the building by the taxpayer and
the date the building was last placed in
service is less than 10 years, the taxpayer's
basis attributable to the acquisition of the
building which is taken into account in
determining the adjusted basis shall not exceed
the sum of--
``(I) the lowest amount paid for
acquisition of the building by any
person during the 10 years preceding
the date of the acquisition of the
building by the taxpayer, adjusted as
provided in clause (iii), and
``(II) the value of any capital
improvements made by the person who
sells the building to the taxpayer
which are reflected in such seller's
basis.
``(iii) Adjustment.--With respect to a
basis determination made in any taxable year,
the amount described in clause (ii)(I) shall be
increased by an amount equal to--
``(I) such amount, multiplied by
``(II) a cost-of-living adjustment,
determined in the same manner as under
section 1(f)(3) for the calendar year
in which the taxable year begins by
taking into account the acquisition
year in lieu of calendar year 1992.
For purposes of the preceding sentence, the
acquisition year is the calendar year in which
the lowest amount referenced in clause (ii)(I)
was paid for the acquisition of the
building.''.
(c) Conforming Amendments.--Clause (i) of section 42(d)(2)(D) is
amended--
(1) by striking ``for subparagraph (b)'' in the heading,
and
(2) by striking ``subparagraph (B)(ii)'' in the matter
preceding subclause (I) and inserting ``subparagraph (B)(ii) or
(C)(ii)''.
(d) Modification of Placed in Service Rule.--Clause (iii) of
section 42(d)(2)(B) is amended to read as follows:
``(iii) the building was not owned by the
taxpayer or by any person related (as of the
date of acquisition by the taxpayer) to the
taxpayer at any time during the 5-year period
ending on the date of acquisition by the
taxpayer, and''.
(e) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2025.
SEC. 11303. CERTAIN RELOCATION COSTS TAKEN INTO ACCOUNT AS
REHABILITATION EXPENDITURES.
(a) In General.--Paragraph (2) of section 42(e) is amended by
adding at the end the following new subparagraph:
``(C) Certain relocation costs.--In the case of a
rehabilitation of a building to which section 280B does
not apply, costs relating to the relocation of
occupants, including--
``(i) amounts paid to occupants,
``(ii) amounts paid to third parties for
services relating to such relocation, and
``(iii) amounts paid for temporary housing
for occupants,
shall be treated as chargeable to capital account and
taken into account as rehabilitation expenditures.''.
(b) Effective Date.--The amendment made by this section shall apply
to expenditures paid or incurred after December 31, 2025.
(c) No Inference.--Nothing in the amendment made by this section
shall be construed to create any inference with respect to the
treatment of relocation costs paid or incurred before January 1, 2026.
SEC. 11304. REPEAL OF QUALIFIED CENSUS TRACT POPULATION CAP.
(a) In General.--Clause (ii) of section 42(d)(5)(B) is amended--
(1) by striking subclauses (II) and (III), and
(2) by striking ``Qualified census tract.--
``(I) In general.--The term'',
and inserting ``Qualified census tract.--The term''.
(b) Effective Date.--The amendments made by this section shall
apply to designations of qualified census tracts under section
42(d)(5)(B)(ii) of the Internal Revenue Code of 1986 after December 31,
2025.
SEC. 11305. DETERMINATION OF COMMUNITY REVITALIZATION PLAN TO BE MADE
BY HOUSING CREDIT AGENCY.
(a) In General.--Subclause (III) of section 42(m)(1)(B)(ii) is
amended by inserting ``, as determined by the housing credit agency
according to criteria established by such agency,'' after
``(d)(5)(B)(ii)) and''.
(b) Criteria.--Paragraph (1) of section 42(m) is amended by adding
at the end the following new subparagraph:
``(E) Criteria for determination relating to
concerted community revitalization plan.--For purposes
of subparagraph (B)(ii)(III), the criteria which shall
be established by a housing credit agency for
determining whether the development of a project
contributes to a concerted community development plan
shall take into account any factors the agency deems
appropriate, including the extent to which the proposed
plan--
``(i) is geographically specific,
``(ii) outlines a clear plan for
implementation and goals for outcomes,
``(iii) includes a strategy for applying
for or obtaining commitments of public or
private investment (or both) in nonhousing
infrastructure, amenities, or services, and
``(iv) demonstrates the need for community
revitalization.''.
(c) Effective Date.--The amendments made by this section shall
apply to allocations of housing credit dollar amounts made under
qualified allocation plans (as defined in section 42(m)(1)(B) of the
Internal Revenue Code of 1986) adopted after December 31, 2025.
SEC. 11306. PROHIBITION OF LOCAL APPROVAL AND CONTRIBUTION
REQUIREMENTS.
(a) In General.--Paragraph (1) of section 42(m), as amended by
section 11305, is further amended--
(1) by striking clause (ii) of subparagraph (A) and by
redesignating clauses (iii) and (iv) thereof as clauses (ii)
and (iii), and
(2) by adding at the end the following new subparagraph:
``(F) Local approval or contribution not taken into
account.--The selection criteria under a qualified
allocation plan shall not include consideration of--
``(i) any support or opposition with
respect to the project from local or elected
officials, or
``(ii) any local government contribution to
the project, except to the extent such
contribution is taken into account as part of a
broader consideration of the project's ability
to leverage outside funding sources, and is not
prioritized over any other source of outside
funding.''.
(b) Effective Date.--The amendments made by this section shall
apply to allocations of housing credit dollar amounts made under
qualified allocation plans (as defined in section 42(m)(1)(B) of the
Internal Revenue Code of 1986) adopted after December 31, 2025.
SEC. 11307. INCREASE IN CREDIT FOR CERTAIN PROJECTS DESIGNATED TO SERVE
EXTREMELY LOW-INCOME HOUSEHOLDS.
(a) In General.--Paragraph (5) of section 42(d) is amended by
adding at the end the following new subparagraph:
``(C) Increase in credit for projects designated to
serve extremely low-income households.--In the case of
any building--
``(i) 20 percent or more of the residential
units (determined as if the imputed income
limitation applicable to such units were 30
percent of area median gross income) in which
are designated by the taxpayer for occupancy by
households the aggregate household income of
which does not exceed the greater of--
``(I) 30 percent of area median
gross income, or
``(II) 100 percent of an amount
equal to the Federal poverty line
(within the meaning of section
36B(d)(3)), and
``(ii) which is designated by the housing
credit agency as requiring the increase in
credit under this subparagraph in order for
such building to be financially feasible as
part of a qualified low-income housing project,
subparagraph (B) shall not apply to the portion of such
building which is comprised of such units (determined
in a manner similar to the unit fraction under
subsection (c)(1)(C)), and the eligible basis of such
portion of the building shall be 150 percent of such
basis determined without regard to this
subparagraph.''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings which receive allocations of housing credit dollar amount
after the date of enactment of this Act, or in the case of buildings
that are described in section 42(h)(4)(B) of the Internal Revenue Code
of 1986, for obligations that are part of an issue the issue date of
which is after December 31, 2025.
SEC. 11308. INCREASE IN CREDIT FOR BOND-FINANCED PROJECTS DESIGNATED BY
STATE AGENCY.
(a) In General.--Clause (v) of section 42(d)(5)(B) is amended by
striking the second sentence.
(b) Technical Amendment.--Clause (v) of section 42(d)(5)(B), as
amended by subsection (a), is further amended--
(1) by striking ``State'' in the heading, and
(2) by striking ``State housing credit agency'' and
inserting ``housing credit agency''.
(c) Effective Date.--The amendments made by this section shall
apply to buildings that are described in section 42(h)(4)(B) of the
Internal Revenue Code of 1986, taking into account only obligations
that are part of an issue the issue date of which is after December 31,
2025.
SEC. 11309. ELIMINATION OF BASIS REDUCTION FOR LOW-INCOME HOUSING
PROPERTIES ENERGY EFFICIENT COMMERCIAL BUILDING
DEDUCTION.
(a) Energy Efficient Commercial Buildings Deduction.--Subsection
(e) of section 179D is amended--
(1) by striking ``Reduction.--For purposes'' and inserting
``Reduction.--
``(1) In general.--For purposes'', and
(2) by adding at the end the following new paragraph:
``(2) Exception for affordable housing properties.--
Paragraph (1) shall not apply for purposes of determining
eligible basis under section 42.''.
(b) Effective Date.--The amendments made by this section shall
apply to buildings which receive allocations of housing credit dollar
amount after the date of the enactment of this Act and to buildings
that are described in section 42(h)(4)(B) of the Internal Revenue Code
of 1986 taking into account only obligations that are part of an issue
the issue date of which is after December 31, 2025.
SEC. 11310. RESTRICTION OF PLANNED FORECLOSURES.
(a) In General.--Subclause (I) of section 42(h)(6)(E)(i) is amended
to read as follows:
``(I) on the 61st day after the
taxpayer (or a successor in interest)
provides notice to the Secretary and
the housing credit agency that the
building has been acquired by
foreclosure (or instrument in lieu of
foreclosure) and that the taxpayer
intends the termination of such period,
unless, before such date, the Secretary
or the housing credit agency determines
that such acquisition is part of an
arrangement with the taxpayer a purpose
of which is to terminate such period,
or''.
(b) Conforming Amendment.--The second sentence of clause (i) of
section 42(h)(6)(E) is amended by striking ``Subclause (II)'' and
inserting ``Subclauses (I) and (II)''.
(c) Effective Date.--The amendments made by this section shall
apply to acquisitions by foreclosure (or instrument in lieu of
foreclosure) after December 31, 2025.
SEC. 11311. INCREASE OF POPULATION CAP FOR DIFFICULT DEVELOPMENT AREAS.
(a) In General.--Subclause (II) of section 42(d)(5)(B)(iii) is
amended by striking ``20 percent'' and inserting ``30 percent''.
(b) Effective Date.--The amendment made by this section shall apply
to designations made under section 42(d)(5)(B)(iii) of the Internal
Revenue Code of 1986 after December 31, 2025.
SEC. 11312. INCREASED COST OVERSIGHT AND ACCOUNTABILITY.
(a) In General.--Subparagraph (C) of section 42(m)(1) is amended by
striking ``and'' at the end of clause (ix), by striking the period at
the end of clause (x) and inserting ``, and'', and by adding at the end
the following new clause:
``(xi) the reasonableness of the
development costs of the project.''.
(b) Effective Date.--The amendments made by this section shall
apply to allocations of credits under section 42 of the Internal
Revenue Code of 1986 made after December 31, 2025.
PART 4--REFORMS RELATING TO NATIVE AMERICAN ASSISTANCE
SEC. 11401. SELECTION CRITERIA UNDER QUALIFIED ALLOCATION PLANS.
(a) In General.--Subparagraph (C) of section 42(m)(1), as amended
by section 11312, is further amended by striking ``and'' at the end of
clause (x), by striking the period at the end of clause (xi) and
inserting ``, and'', and by adding at the end the following new clause:
``(xii) the affordable housing needs of
individuals in the State who are--
``(I) enrolled members of a tribe
with respect to an Indian tribal
government (including any agencies or
instrumentalities of an Indian tribal
government and any Alaska Native
regional or village corporation, as
defined in, or established pursuant to,
the Alaska Native Claims Settlement Act
(43 U.S.C. 1601 et seq.)), or
``(II) described in section 801(9)
of the Native American Housing
Assistance and Self-Determination Act
of 1996 (25 U.S.C. 4221(9)).''.
(b) Effective Date.--The amendments made by this section shall
apply to allocations of credits under section 42 of the Internal
Revenue Code of 1986 made after December 31, 2025.
SEC. 11402. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS
FOR PURPOSES OF CERTAIN BUILDINGS.
(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii) is
amended by inserting before the period the following: ``, and any
Indian area''.
(b) Indian Area.--Clause (iii) of section 42(d)(5)(B) is amended by
redesignating subclause (II) as subclause (III) and by inserting after
subclause (I) the following new subclause:
``(II) Indian area.--For purposes
of subclause (I), the term `Indian
area' means any Indian area (as defined
in section 4(11) of the Native American
Housing Assistance and Self
Determination Act of 1996 (25 U.S.C.
4103(11))) and any housing area (as
defined in section 801(5) of such Act
(25 U.S.C. 4221(5))).''.
(c) Eligible Buildings.--Clause (iii) of section 42(d)(5)(B), as
amended by subsection (b), is further amended by adding at the end the
following new subclause:
``(IV) Special rule for buildings
in indian areas.--In the case of an
area which is a difficult development
area solely because it is an Indian
area, a building shall not be treated
as located in such area unless such
building is assisted or financed under
the Native American Housing Assistance
and Self Determination Act of 1996 (25
U.S.C. 4101 et seq.) or the project
sponsor is an Indian tribe (as defined
in section 45A(c)(6)), a tribally
designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C.
4103(22))), or wholly owned or
controlled by such an Indian tribe or
tribally designated housing entity.''.
(d) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2025.
PART 5--REFORMS RELATING TO RURAL ASSISTANCE
SEC. 11501. INCLUSION OF RURAL AREAS AS DIFFICULT DEVELOPMENT AREAS.
(a) In General.--Subclause (I) of section 42(d)(5)(B)(iii), as
amended by section 11402, is further amended by inserting ``, any rural
area'' after ``median gross income''.
(b) Rural Area.--Clause (iii) of section 42(d)(5)(B), as amended by
section 11402, is further amended by redesignating subclause (III) as
subclause (IV) and by inserting after subclause (II) the following new
subclause:
``(III) Rural area.--For purposes
of subclause (I), the term `rural area'
means any non-metropolitan area, or any
rural area as defined by section 520 of
the Housing Act of 1949, which is
identified by the qualified allocation
plan under subsection (m)(1)(B).''.
(c) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2025.
SEC. 11502. UNIFORM INCOME ELIGIBILITY FOR RURAL PROJECTS.
(a) In General.--Paragraph (8) of section 42(i) is amended by
striking the second sentence.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2025.
PART 6--EXEMPT FACILITY BONDS
SEC. 11601. REVISION AND CLARIFICATION OF THE TREATMENT OF REFUNDING
ISSUES.
(a) In General.--Subparagraph (A) of section 146(i)(6) is amended
to read as follows:
``(A) In general.--During the 12-month period
beginning on the date of a repayment of a loan financed
by an issue 95 percent or more of the net proceeds of
which are used to provide projects described in section
142(d), if such repayment is used to provide a new loan
for any project described in section 142(a)(7) or for
any purpose described in subsection (a)(2)(A) or (b) of
section 143, any bond which is issued to refinance such
issue shall be treated as a refunding issue. Any issue
treated as a refunding issue by reason of the preceding
sentence shall be so treated only to the extent the
principal amount of such refunding issue does not
exceed the principal amount of the bonds refunded.''.
(b) Removal of One-Refunding Limit.--Subparagraph (B) of section
146(i)(6) is amended--
(1) by striking ``4 years'' in clause (i) and inserting
``10 years'',
(2) by striking ``was issued'' in clause (ii) and inserting
``is issued'',
(3) by redesignating clauses (i) (as so amended), (ii) (as
so amended), and (iii) as subclauses (I), (II), and (III),
respectively, and by moving such subclauses 2 ems to the right,
(4) by striking ``Limitations.--Subparagraph (A) shall
apply to only one refunding of the original issue and'' and
inserting ``Limitations.--
``(i) In general.--Subparagraph (A) shall
apply to a bond'', and
(5) by adding at the end the following new clause:
``(ii) Source of loan repayment.--
Subparagraph (A) shall not apply to any
repayment of a loan which is--
``(I) made by a repayment of
another loan, or
``(II) financed by an issue treated
as a refunding issue under subparagraph
(A).''.
(c) Conforming Amendment.--The heading of paragraph (6) of section
146(i) is amended by striking ``residential rental project bonds as
refunding bonds irrespective of obligor'' and inserting ``bonds as
refunding bonds''.
(d) Effective Dates.--
(1) In general.--The amendments made by subsections (a) and
(c) shall apply to refunding issues described in section
146(i)(6)(A) of the Internal Revenue Code of 1986 issued on or
after the date of the enactment of this Act.
(2) Removal of one-refunding limit.--The amendments made by
subsection (b) shall apply to repayments of loans received
after July 30, 2008.
PART 7--REFORMS RELATING TO DISABLED VETERANS
SEC. 11701. TREATMENT OF VETERAN DISABILITY COMPENSATION OR PENSION
PAYMENTS FOR PURPOSES OF LOW INCOME HOUSING TAX CREDIT
AND RESIDENTIAL RENTAL PROJECT BONDS.
(a) In General.--Section 142(d)(2)(B) is amended by adding at the
end the following new clause:
``(v) Veteran disability compensation or
pension.--For purposes of determining income
under this subparagraph, payments of disability
compensation or pension under chapter 11 or 15
of title 38, United States Code, shall be
disregarded.''.
(b) Effective Date.--The amendments made by this section shall
apply to determinations made after the date of the enactment of this
Act.
PART 8--REFORMS RELATING TO CERTAIN OTHER POPULATIONS
SEC. 11801. ADDITIONAL HOUSING CREDIT ALLOCATIONS FOR CERTAIN
POPULATIONS WHO FACE UNIQUE BARRIERS TO AFFORDABLE
HOUSING.
(a) In General.--Section 42 of the Internal Revenue Code of 1986 is
amended by redesignating subsection (n) as subsection (o) and by
inserting after subsection (m) the following new subsection:
``(n) Additional Allocation for Units for Certain Populations Who
Face Unique Barriers to Affordable Housing.--
``(1) In general.--A housing credit agency may allocate, in
any calendar year, an amount equal to 5 percent of the amount
such housing credit agency may allocate under subsection
(h)(3)(C) to projects which contain a unit described in
paragraph (2).
``(2) Unit described.--A unit is described in this
paragraph if--
``(A) such unit is part of a low-income housing
project,
``(B) the housing credit agency and the owner of
such unit, not later than the first day of the second
year of the credit period of such project, execute a
compliance agreement,
``(C) the taxpayer prioritizes populations who face
unique barriers to affordable housing for occupancy of
such units, and
``(D) the taxpayer, in consultation with covered
service providers, makes available to any resident of
such unit appropriate supportive services during the
compliance period.
``(3) Compliance agreement.--For purposes of paragraph
(2)(B), the term `compliance agreement' means an agreement
which--
``(A) requires the owner of a unit to submit to the
housing credit agency for approval a supportive service
plan for each calendar year during the compliance
period,
``(B) requires the approval of the housing credit
agency with respect to any agreement between such owner
and any covered service provider relating to services
provided pursuant to this subsection, and
``(C) allows the housing credit agency to monitor
compliance with such agreement and with the
requirements of this subsection.
``(4) Populations who face unique barriers to affordable
housing.--For purposes of this subsection, the term
`populations who face unique barriers to affordable housing'
means individuals who are--
``(A) formerly justice-involved individuals,
``(B) current or former foster youths, or
``(C) kinship caregivers.
``(5) Covered service provider.--For purposes of this
subsection, the term `covered service provider' means any
entity with demonstrated experience providing supportive
services to populations who face unique barriers to affordable
housing.
``(6) Formerly justice-involved individual.--For purposes
of this paragraph, the term `formerly justice-involved
individual' means an individual who faces barriers to obtaining
housing as a result of being arrested, charged, or convicted of
any criminal offense.
``(7) Current or former foster youth.--The term `current or
former foster youth' means an individual who was eligible at
any time to receive services under section 477(a) of the Social
Security Act.
``(8) Not included in aggregate housing credit dollar
amount.--An amount allocated under paragraph (1) shall not be
included in the aggregate housing credit dollar amount for any
calendar year of the State which made such allocation.
``(9) Enforcement.--The Secretary shall, in consultation
with housing credit agencies, establish such mechanisms
(including penalties) as the Secretary determines appropriate
to ensure that--
``(A) each unit with respect to which a credit is
allowed under paragraph (1) meets the requirements
described in paragraph (2), and
``(B) each housing credit agency which makes an
allocation under paragraph (1) is taking appropriate
steps to enforce each compliance agreement to which
such housing credit agency is a party under paragraph
(3).''.
(b) Allocations Allowed in Addition to State Ceiling.--Section
42(h)(1) of such Code is amended by striking ``the housing credit
dollar amount allocated to such building under this subsection'' and
inserting ``the sum of the housing credit dollar amounts allocated to
such building under this subsection and subsection (n)''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after 2026.
PART 9--QUALIFIED CONTRACTS AND RIGHT OF FIRST REFUSAL
SEC. 11901. REPEAL OF QUALIFIED CONTRACT OPTION.
(a) Termination of Option for Certain Buildings.--
(1) In general.--Subclause (II) of section 42(h)(6)(E)(i)
is amended by inserting ``in the case of a building described
in clause (iii),'' before ``on the last day''.
(2) Buildings described.--Subparagraph (E) of section
42(h)(6) is amended by adding at the end the following new
clause:
``(iii) Buildings described.--A building
described in this clause is a building--
``(I) which received its allocation
of housing credit dollar amount before
January 1, 2026, or
``(II) in the case of a building
any portion of which is financed as
described in paragraph (4), and which
received before January 1, 2026, under
the rules of paragraphs (1) and (2) of
subsection (m), a determination from
the issuer of the tax-exempt bonds or
the housing credit agency that the
building would be eligible under the
qualified allocation plan to receive an
allocation of housing credit dollar
amount or that the credits to be earned
are necessary for financial feasibility
of the project and its viability as a
qualified low-income housing project
throughout the credit period.''.
(b) Rules Relating to Existing Projects.--Subparagraph (F) of
section 42(h)(6) is amended by striking ``the nonlow-income portion''
and all that follows and inserting ``the nonlow-income portion and the
low-income portion of the building for fair market value (determined by
the housing credit agency by taking into account the rent restrictions
required for the low-income portion of the building to continue to meet
the standards of paragraphs (1) and (2) of subsection (g)). The
Secretary shall prescribe such regulations as may be necessary or
appropriate to carry out this paragraph.''.
(c) Conforming Amendments.--
(1) Paragraph (6) of section 42(h) is amended by striking
subparagraph (G) and by redesignating subparagraphs (H), (I),
(J), and (K) as subparagraphs (G), (H), (I), and (J),
respectively.
(2) Subclause (II) of section 42(h)(6)(E)(i) is amended by
striking ``subparagraph (I)'' and inserting ``subparagraph
(H)''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to buildings with respect to which a written
request described in section 42(h)(6)(H) of the Internal
Revenue Code of 1986, as redesignated by subsection (c), is
submitted after the date of the enactment of this Act.
SEC. 11902. MODIFICATION AND CLARIFICATION OF RIGHTS RELATING TO
BUILDING PURCHASE.
(a) Modification of Right of First Refusal.--
(1) In general.--Subparagraph (A) of section 42(i)(7) is
amended by striking ``a right of 1st refusal'' and inserting
``an option''.
(2) Conforming amendment.--The heading of paragraph (7) of
section 42(i) is amended by striking ``right of 1st refusal''
and inserting ``option''.
(b) Clarification With Respect to Right of First Refusal and
Purchase Options.--
(1) Purchase of partnership interest.--
(A) In general.--Subparagraph (A) of section
42(i)(7), as amended by subsection (a), is amended by
striking ``the property'' and inserting ``the property
or all of the partnership interests (other than
interests of the person exercising such option or a
related party thereto (within the meaning of section
267(b) or 707(b)(1))) relating to the property''.
(B) Application to S corporations and other pass-
through entities.--Subparagraph (A) of section 42(i)(7)
is amended by adding at the end the following: ``Except
as provided by the Secretary, the rules of this
paragraph shall apply to S corporations and other pass-
through entities in the same manner as such rules apply
to partnerships.''.
(C) Conforming amendment.--Subparagraph (B) of
section 42(i)(7) is amended by adding at the end the
following: ``In the case of a purchase of all of the
partnership interests, the minimum purchase price under
this subparagraph shall be an amount not less than the
sum of the interests' shares of the amount which would
be determined with respect to the property under this
subparagraph without regard to this sentence.''.
(2) Property includes assets relating to the building.--
Paragraph (7) of section 42(i) is amended by adding at the end
the following new subparagraph:
``(C) Property.--For purposes of subparagraph (A),
the term `property' may include all or any of the
assets held for the development, operation, or
maintenance of a building.''.
(3) Exercise of right of first refusal and purchase
options.--Subparagraph (A) of section 42(i)(7), as amended by
subsection (a) and paragraph (1)(A), is amended by adding at
the end the following: ``For purposes of determining whether an
option, including a right of first refusal, to purchase
property or all of the partnership interests holding (directly
or indirectly) such property is described in the preceding
sentence--
``(i) such option or right of first refusal
shall be exercisable with or without the
approval of any owner of the project (including
any partner, member, or affiliated organization
of such an owner), and
``(ii) a right of first refusal shall be
exercisable in response to any offer to
purchase the property or all of the partnership
interests, including an offer by a related
party.''.
(c) Other Conforming Amendment.--Subparagraph (B) of section
42(i)(7), as amended by subsection (b), is amended by striking ``the
sum of'' and all that follows through ``application of clause (ii).''
and inserting the following: ``the principal amount of outstanding
indebtedness secured by the building (other than indebtedness incurred
within the 5-year period ending on the date of the sale to the
tenants).''.
(d) Effective Dates.--
(1) Modification of right of first refusal.--The amendments
made by subsections (a) and (c) shall apply to agreements
entered into or amended after the date of the enactment of this
Act.
(2) Clarification.--The amendments made by subsection (b)
shall apply to agreements among the owners of the project
(including partners, members, and their affiliated
organizations) and persons described in section 42(i)(7)(A) of
the Internal Revenue Code of 1986 entered into before, on, or
after the date of the enactment of this Act.
(3) No effect on agreements.--None of the amendments made
by this section is intended to supersede express language in
any agreement with respect to the terms of a right of first
refusal or option permitted by section 42(i)(7) of the Internal
Revenue Code of 1986 in effect on the date of the enactment of
this Act.
Subtitle B--Additional Housing Incentives
SEC. 12001. INVESTMENT CREDIT FOR CONVERSION OF NON-RESIDENTIAL
BUILDINGS TO AFFORDABLE HOUSING.
(a) In General.--Subpart E of part IV of subchapter A of chapter 1
is amended by inserting after section 48E the following new section:
``SEC. 48F. AFFORDABLE HOUSING CONVERSION CREDIT.
``(a) Allowance of Credit.--For purposes of section 46, the
affordable housing conversion credit for any taxable year is an amount
equal to 20 percent of the qualified conversion expenditures of the
taxpayer with respect to a qualified affordable housing building placed
in service by the taxpayer during the taxable year.
``(b) Qualified Conversion Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified conversion
expenditures' means, with respect to any qualified affordable
housing building, any amount properly chargeable to capital
account--
``(A) for property for which depreciation is
allowable under section 168, and
``(B) in connection with the qualified conversion
of a qualified affordable housing building.
``(2) Certain expenditures not included.--The term
`qualified conversion expenditures' does not include--
``(A) Limitation on period of conversion.--Except
as provided in subsection (f), any amount paid or
incurred other than during the 2-year period ending on
the date on which the taxpayer places the qualified
affordable housing building in service.
``(B) Cost of acquisition.--The cost of acquiring
any building or interest therein.
``(3) Special rule for brownfields.--Paragraph (1)(A) shall
not apply with respect to any expenditure for clean up of
qualifying brownfield property (as defined in section
512(b)(19)).
``(4) Coordination with rehabilitation credit.--In the case
of any qualified conversion expenditures which are taken into
account for purposes of determining the rehabilitation credit
under section 47, the amount of such expenditures taken into
account under this section (determined without regard to this
paragraph) shall be reduced by 50 percent.
``(c) Qualified Conversion.--For purposes of this section--
``(1) In general.--The term `qualified conversion' means
the conversion of an eligible commercial building into a
qualified affordable housing building if the qualified
conversion expenditures of the taxpayer with respect to such
conversion exceed the greater of--
``(A) an amount equal to 50 percent of the adjusted
basis of such building (determined immediately prior to
such conversion), or
``(B) $100,000.
``(2) Eligible commercial building.--The term `eligible
commercial building' means any building which, with respect to
any conversion--
``(A) was originally placed in service not less
than 20 years before the date on which such conversion
begins, and
``(B) immediately prior to such conversion, was
nonresidential real property (as defined in section
168).
``(d) Qualified Affordable Housing Building.--For purposes of this
section--
``(1) In general.--The term `qualified affordable housing
building' means any residential building if during the 30-year
period beginning on the date on which such building is placed
in service by the taxpayer, not less than 20 percent of the
residential units in the building are both rent-restricted and
reserved for individuals whose income is 80 percent or less of
the area median income.
``(2) Rent and income limitation.--For purposes of this
subsection, rules similar to the rules of subsection (g) of
section 42 shall apply to determine whether a unit is rent-
restricted, treatment of units occupied by individuals whose
incomes rise above the limit, and the treatment of units where
Federal rental assistance is reduced as tenant's income
increases.
``(e) Limitation on Aggregate Credit Allowable.--
``(1) Credit may not exceed credit amount allocated to
building.--
``(A) In general.--The amount of the credit
determined under this section with respect to any
building shall not exceed the qualified conversion
credit dollar amount allocated to such building under
this subsection by the housing credit agency of the
State in which such building is located.
``(B) Time for making allocation.--Except in the
case of an allocation which meets the requirements of
subparagraph (C), an allocation shall be taken into
account under subparagraph (A) only if it is made not
later than the close of the calendar year in which the
building is placed in service.
``(C) Exception where binding commitment.--An
allocation meets the requirements of this subparagraph
if there is a binding commitment (not later than the
close of the calendar year in which the building is
placed in service) by the housing credit agency to
allocate a specified housing credit dollar amount to
such building beginning in a later taxable year.
``(2) State limitation.--
``(A) In general.--The aggregate qualified
conversion credit dollar amount which a housing credit
agency of any State may allocate is the sum of--
``(i) the amount which bears the same ratio
to the national qualified conversion credit
limitation as--
``(I) the population of such State,
bears to
``(II) the population of all
States, plus
``(ii) the sum of any amounts determined
under subparagraph (C).
``(B) National qualified conversion credit
limitation.--The national qualified conversion credit
limitation is $12,000,000,000.
``(C) Additional amounts provided for certain
buildings in economically distressed areas.--
``(i) In general.--For purposes of
subparagraph (A)(ii), in any case in which--
``(I) the housing credit agency of
a State allocates an amount to a
building which is located in an
economically distressed area, and
``(II) the Secretary subsequently
designates such amount for purposes of
this paragraph,
the amount determined under this paragraph with
respect to such building shall be the amount
originally allocated by the housing credit
agency of the State under clause (i).
``(ii) Limitation.--The aggregate amount
which the Secretary may designate under clause
(i)(II) shall not exceed $3,000,000,000.
``(iii) Manner of designation.--Not later
than 120 days after the date of the enactment
of this section, the Secretary shall establish
a program for determining the designation of
amounts that may be designated under this
subparagraph.
``(D) Reallocation of certain amounts.--
``(i) In general.--Notwithstanding
subparagraph (A)--
``(I) no amount may be allocated
under paragraph (1) by a housing credit
agency of an undersubscribed State
after December 31, 2028, and
``(II) the dollar amount determined
under subparagraph (A) with respect to
any oversubscribed State after such
date shall be increased by such State's
share of the reallocation amount.
``(ii) State share.--For purposes of clause
(i), an oversubscribed State's share of the
reallocation amount is the amount which bears
the same ratio to the reallocation amount as--
``(I) the population of such State,
bears to
``(II) the population of all
oversubscribed States.
``(iii) Definitions.--For purposes of this
subparagraph--
``(I) Undersubscribed state.--The
term `undersubscribed State' means any
State that is not an oversubscribed
State.
``(II) Oversubscribed state.--The
term `oversubscribed State' means any
State the housing credit agency of
which has allocated all of the
qualified conversion credit dollar
amount which may be allocated by it
before the date described in clause
(i)(I).
``(III) Reallocation amount.--The
term `reallocation amount' means the
sum of the amounts described in
subparagraph (A) which have not been
allocated by undersubscribed States
before the date described in clause
(i)(I).
``(3) Manner of allocation.--
``(A) Plan for allocation.--
``(i) In general.--Notwithstanding any
other provision of this section, the qualified
conversion credit dollar amount with respect to
any building shall be zero unless such amount
was allocated pursuant to a conversion credit
allocation plan of the housing credit agency
which is approved by the governmental unit (in
accordance with rules similar to the rules of
section 147(f)(2) (other than subparagraph
(B)(ii) thereof)) of which such agency is a
part.
``(ii) Conversion credit allocation plan.--
For purposes of this subparagraph, the term
`conversion credit allocation plan' means a
plan--
``(I) which sets selection criteria
for allocations, taking into account--
``(aa) whether the credit
is needed to assure the
financial feasibility of the
conversion,
``(bb) the extent to which
the conversion results in the
creation of affordable housing,
``(cc) the extent to which
the conversion results in the
creation of housing near
transportation, employment, and
commercial opportunities,
``(dd) the extent to which
the conversion will support
small businesses and economic
revitalization in the
surrounding area,
``(ee) the degree of local
government support for the
conversion, and
``(ff) the readiness of the
building for a qualified
conversion, and
``(II) which provides a procedure
that the agency (or an agent or other
private contractor of such agency) will
follow in monitoring for noncompliance
with the requirements of subsection (d)
and in notifying the Internal Revenue
Service of such noncompliance.
``(B) Binding allocation agreements; reporting.--In
making allocations of qualified conversion credit
dollar amounts, each housing credit agency shall--
``(i) enter into binding agreements with
taxpayers for the allocation of qualified
conversion credit dollar amounts, which
agreements shall specify the amount of
qualified conversion credit dollar amount
allocated to the building and the terms for any
modifications or withdrawal of such allocation,
and
``(ii) report to the Secretary, at such
time and in such manner as the Secretary may
require, the amount of allocations made with
respect to any building.
``(C) State extended use requirements permitted
past 30 years.--For purposes of this paragraph, a
housing credit agency's plan shall not fail to be
treated as a conversion credit allocation plan merely
because it includes, and nothing in this section shall
be construed to limit a binding allocation agreement
from including, affordability or rent restriction
requirements with respect to the building that apply
for a longer period than the 30-year period described
in subsections (d) and (g)(1)(B).
``(4) Definitions and other rules.--
``(A) Housing credit agency.--The term `housing
credit agency' means, with respect to any State, the
housing credit agency authorized under section 42(h)(8)
or such other agency as authorized by the State for
purposes of this section.
``(B) Economically distressed area.--The term
`economically distressed area' means any area which--
``(i) has been designated as a qualified
census tract under section 42(d)(5)(B)(ii) or
as a difficult development area under section
42(d)(5)(B)(iii), or
``(ii) meets the requirement of section
301(a)(3) of the Public Works and Economic
Development Act of 1965.
``(C) State.--The term `State' includes a
possession of the United States.
``(D) Other rules.--Rules similar to the rules of
subparagraphs (A) and (B) of section 42(h)(7) shall
apply for purposes of this section.
``(f) Progress Expenditures.--If the Secretary determines, on the
basis of architectural plans and specifications that a qualified
conversion is reasonably expected to exceed 2 years, rules similar to
the rules of section 47(d) shall apply with respect to such conversion
for purposes of this section.
``(g) Special Rules for Certain Areas.--
``(1) Qualified census tracts and difficult development
areas.--In the case of a qualified affordable housing
building--
``(A) which is located in any area which is
designated as a qualified census tract under section
42(d)(5)(B)(ii) or as a difficult development area
under section 42(d)(5)(B)(iii), and
``(B) with respect to which during 30-year period
beginning on the date on which such building is placed
in service by the taxpayer, not less than 20 percent of
the residential units in the building are both rent-
restricted and reserved for individuals whose income is
60 percent or less of the area median income,
subsection (a) shall be applied by substituting `30 percent'
for `20 percent'.
``(2) Historic preservation in rural areas.--
``(A) In general.--In the case of a qualified
affordable housing building which is in a rural area
and is part of an historic preservation project, the
taxpayer may elect to substitute `35 percent' for `20
percent' under subsection (a) with respect to such
portion of the aggregate qualified conversion
expenditures taken into account under such subsection
as does not exceed $2,000,000.
``(B) Definitions.--For purposes of this
paragraph--
``(i) Rural area.--The term `rural area'
shall have the meaning given such term under
section 1393(a)(2).
``(ii) Historic preservation project.--The
term `historic preservation project' means a
qualified conversion which involves the
certified rehabilitation of a certified
historic structure. Whether conversion of a
certified historic structure involves certified
rehabilitation shall be determined under rules
similar to the rules of section 47(c)(2)(C).
``(h) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance--
``(1) providing for the recapture of the credit determined
under subsection (a) if the qualified affordable housing
building ceases to be a qualified affordable housing building
during the 30-year period beginning on the date that such
building is placed in service by the taxpayer,
``(2) detailing any certifications required from the
taxpayer or any housing credit agency of a State,
``(3) with respect to the application of subsection (b)(4),
``(4) with respect to information reporting on allocations
of qualified conversion credit dollar amounts,
``(5) providing rules for making a determination as to
whether an area is described in subsection (e)(4)(B), and
``(6) which encourages housing credit agencies to allocate,
to the extent practicable, qualified conversion credit dollar
amounts to non-metropolitan counties within a State in
proportion to the non-metropolitan population of the State, but
only to the extent it is demonstrated within such non-
metropolitan counties that there are sufficient qualified
conversion expenditures to warrant such allocations.''.
(b) Transferability of Credit.--Section 6418(f)(1)(A) is amended by
adding at the end the following new clause:
``(xiii) The affordable housing conversion
credit determined under section 48F.''.
(c) Conforming Amendments.--
(1) Section 46 is amended in paragraph (6) by striking
``and'' at the end, in paragraph (7) by striking the period at
the end and inserting ``, and'', and by adding at the end the
following new paragraph:
``(8) the affordable housing conversion credit.''.
(2) Section 49(a)(1)(C) is amended by striking ``and'' at
the end of clause (vii), in clause (viii) by striking the
period at the end and inserting ``, and'', and by adding at the
end the follow new clause:
``(ix) the basis of any property which is
being converted as part of a qualified
conversion under section 48F.''.
(3) Section 50(a)(2)(E) is amended by striking ``or
48E(e)'' and inserting ``48E(e), or 48F(f)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 48F. Affordable housing conversion credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to qualified affordable housing buildings (as defined in section
48F of the Internal Revenue Code of 1986, as added by this section)
placed in service after the date of the enactment of this Act.
SEC. 12002. NEIGHBORHOOD HOMES CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 42 the following new section:
``SEC. 42A. NEIGHBORHOOD HOMES CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
neighborhood homes credit determined under this section for the taxable
year is, with respect to each qualified residence sold by the taxpayer
during such taxable year in an affordable sale, the lesser of--
``(1) an amount equal to--
``(A) the excess (if any) of--
``(i) the reasonable development costs paid
or incurred by the taxpayer with respect to
such qualified residence, over
``(ii) the sale price of such qualified
residence (reduced by any reasonable expenses
paid or incurred by the taxpayer in connection
with such sale), or
``(B) if the neighborhood homes credit agency
determines it is necessary to ensure financial
feasibility, an amount not to exceed 120 percent of the
amount under subparagraph (A),
``(2) 40 percent of the eligible development costs paid or
incurred by the taxpayer with respect to such qualified
residence, or
``(3) 32 percent of the national median sale price for new
homes (as determined pursuant to the most recent census data
available as of the date on which the neighborhood homes credit
agency makes an allocation for the qualified project).
``(b) Development Costs.--For purposes of this section--
``(1) Reasonable development costs.--
``(A) In general.--The term `reasonable development
costs' means amounts paid or incurred for the
acquisition of buildings and land, construction,
substantial rehabilitation, demolition of structures,
or environmental remediation, to the extent that the
neighborhood homes credit agency determines that such
amounts meet the standards specified pursuant to
subsection (f)(1)(D) (as of the date on which
construction or substantial rehabilitation is
substantially complete, as determined by such agency)
and are necessary to ensure the financial feasibility
of such qualified residence.
``(B) Considerations in making determination.--In
making the determination under subparagraph (A), the
neighborhood homes credit agency shall consider--
``(i) the sources and uses of funds and the
total financing,
``(ii) any proceeds or receipts generated
or expected to be generated by reason of tax
benefits, and
``(iii) the reasonableness of the
developmental costs and fees.
``(2) Eligible development costs.--The term `eligible
development costs' means the amount which would be reasonable
development costs if the amounts taken into account as paid or
incurred for the acquisition of buildings and land did not
exceed 75 percent of such costs determined without regard to
any amount paid or incurred for the acquisition of buildings
and land.
``(3) Substantial rehabilitation.--The term `substantial
rehabilitation' means amounts paid or incurred for
rehabilitation of a qualified residence if such amounts exceed
the greater of--
``(A) $25,000, or
``(B) 20 percent of the amounts paid or incurred by
the taxpayer for the acquisition of buildings and land
with respect to such qualified residence.
``(4) Construction and rehabilitation only after allocation
taken into account.--
``(A) In general.--The terms `reasonable
development costs' and `eligible development costs'
shall not include any amount paid or incurred before
the date on which an allocation is made to the taxpayer
under subsection (e) with respect to the qualified
project of which the qualified residence is part unless
such amount is paid or incurred for the acquisition of
buildings or land.
``(B) Land and building acquisition costs.--Amounts
paid or incurred for the acquisition of buildings or
land shall be included under paragraph (A) only if paid
or incurred not more than 3 years before the date on
which the allocation referred to in subparagraph (A) is
made. If the taxpayer acquired any building or land
from an entity (or any related party to such entity)
that holds an ownership interest in the taxpayer, then
such entity must also have acquired such property
within such 3-year period, and the acquisition cost
included under subparagraph (A) with respect to the
taxpayer shall not exceed the amount such entity paid
or incurred to acquire such property.
``(c) Qualified Residence.--For purposes of this section--
``(1) In general.--The term `qualified residence' means a
residence that--
``(A) is real property (constructed on-site or
manufactured off-site) affixed on a permanent
foundation,
``(B) is--
``(i) a house which is comprised of 4 or
fewer residential units,
``(ii) a condominium unit, or
``(iii) a house or an apartment owned by a
cooperative housing corporation (as defined in
section 216(b)),
``(C) is part of a qualified project with respect
to which the neighborhood homes credit agency has made
an allocation under subsection (e), and
``(D) is located in a qualified census tract
(determined as of the date of such allocation).
``(2) Qualified census tract.--
``(A) In general.--The term `qualified census
tract' means a census tract--
``(i) which--
``(I) has a median family income
which does not exceed 80 percent of the
median family income for the applicable
area,
``(II) has a poverty rate that is
not less than 130 percent of the
poverty rate of the applicable area,
and
``(III) has a median value for
owner-occupied homes that does not
exceed the median value for owner-
occupied homes in the applicable area,
``(ii) which--
``(I) is located in a city which
has a population of not less than
50,000 and such city has a poverty rate
that is not less than 150 percent of
the poverty rate of the applicable
area,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has a median value for
owner-occupied homes that does not
exceed 80 percent of the median value
for owner-occupied homes in the
applicable area,
``(iii) which--
``(I) is located in a
nonmetropolitan county,
``(II) has a median family income
which does not exceed the median family
income for the applicable area, and
``(III) has been designated by a
neighborhood homes credit agency under
this clause,
``(iv) which is not otherwise a qualified
census tract and is located in a disaster area
(as defined in section 7508A(d)(3)), but only
with respect to credits allocated in any period
during which the President of the United States
has determined that such area warrants
individual or individual and public assistance
by the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act, or
``(v) which is not otherwise a qualified
census tract and is identified by the
neighborhood homes credit agency, through
methodologies detailed in the qualified
allocation plan, as having a shortage of
affordable owner-occupied homes.
``(B) Applicable area.--The term `applicable area'
means--
``(i) in the case of a metropolitan census
tract, the metropolitan area in which such
census tract is located, and
``(ii) in the case of a census tract other
than a census tract described in clause (i),
the State.
``(d) Affordable Sale.--For purposes of this section--
``(1) In general.--The term `affordable sale' means a sale
to a qualified homeowner of a qualified residence that the
neighborhood homes credit agency certifies as meeting the
standards promulgated under subsection (f)(1)(D) for a price
that does not exceed--
``(A) in the case of any qualified residence not
described in subparagraph (B), (C), or (D), the amount
equal to the product of 4 multiplied by the median
family income for the applicable area (as determined
pursuant to the most recent census data available as of
the date of the contract for such sale),
``(B) in the case of a house comprised of 2
residential units, 125 percent of the amount described
in subparagraph (A),
``(C) in the case of a house comprised of 3
residential units, 150 percent of the amount described
in subparagraph (A), or
``(D) in the case of a house comprised of 4
residential units, 175 percent of the amount described
in subparagraph (A).
``(2) Qualified homeowner.--The term `qualified homeowner'
means, with respect to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual, and
``(B) whose family income (determined as of the
date that a binding contract for the affordable sale of
such residence is entered into) is 140 percent or less
of the median family income for the applicable area in
which the qualified residence is located.
``(e) Credit Ceiling and Allocations.--
``(1) Credit limited based on allocations to qualified
projects.--
``(A) In general.--The credit allowed under
subsection (a) to any taxpayer for any taxable year
with respect to one or more qualified residences which
are part of the same qualified project shall not exceed
the excess (if any) of--
``(i) the amount allocated by the
neighborhood homes credit agency under this
paragraph to such taxpayer with respect to such
qualified project, over
``(ii) the aggregate amount of credit
allowed under subsection (a) to such taxpayer
with respect to qualified residences which are
a part of such qualified project for all prior
taxable years.
``(B) Deadline for completion.--No credit shall be
allowed under subsection (a) with respect to any
qualified residence unless the affordable sale of such
residence is during the 5-year period beginning on the
date of the allocation to the qualified project of
which such residence is a part (or, in the case of a
qualified residence to which subsection (i) applies,
the rehabilitation of such residence is completed
during such 5-year period).
``(2) Limitations on allocations to qualified projects.--
``(A) Allocations limited by state neighborhood
homes credit ceiling.--The aggregate amount allocated
to taxpayers with respect to qualified projects by the
neighborhood homes credit agency of any State for any
calendar year shall not exceed the State neighborhood
homes credit amount of such State for such calendar
year.
``(B) Set-aside for certain projects involving
qualified nonprofit organizations.--Rules similar to
the rules of section 42(h)(5) shall apply for purposes
of this section.
``(3) Determination of state neighborhood homes credit
ceiling.--
``(A) In general.--The State neighborhood homes
credit amount for a State for a calendar year is an
amount equal to the sum of--
``(i) the greater of--
``(I) the product of $9, multiplied
by the State population (determined in
accordance with section 146(j)), or
``(II) $12,000,000, and
``(ii) any amount previously allocated to
any taxpayer with respect to any qualified
project by the neighborhood homes credit agency
of such State which can no longer be allocated
to any qualified residence because the 5-year
period described in paragraph (1)(B) expires
during calendar year.
``(B) 3-year carryforward of unused limitation.--
The State neighborhood homes credit amount for a State
for a calendar year shall be increased by the excess
(if any) of the State neighborhood homes credit amount
for such State for the preceding calendar year over the
aggregate amount allocated by the neighborhood homes
credit agency of such State during such preceding
calendar year. Any amount carried forward under the
preceding sentence shall not be carried past the third
calendar year after the calendar year in which such
credit amount originally arose, determined on a first-
in, first-out basis.
``(f) Responsibilities of Neighborhood Homes Credit Agencies.--
``(1) In general.--Notwithstanding subsection (e), the
State neighborhood homes credit dollar amount shall be zero for
a calendar year unless the neighborhood homes credit agency of
the State--
``(A) allocates such amount pursuant to a qualified
allocation plan of the neighborhood homes credit
agency,
``(B) subject to paragraph (2), allocates not more
than 20 percent of amounts allocated in the previous
year (or for allocations made in the first allocation
year under this section, not more than 20 percent of
the neighborhood homes credit ceiling for such year) to
projects with respect to qualified residences which--
``(i) are located in census tracts
described in subsection (c)(2)(A)(iii),
(c)(2)(A)(iv), (i)(5), or
``(ii) are not located in a qualified
census tract but meet the requirements of
subsection (i)(8),
``(C) subject to paragraph (2), in addition to any
allocation described in subparagraph (B), allocates not
more than 20 percent of amounts allocated in the
previous year (or for allocations made in the first
allocation year under this section, not more than 20
percent of the neighborhood homes credit ceiling for
such year) to projects with respect to qualified
residences which are located in any census tract
described in subsection (c)(2)(A)(v), except that, with
respect to any qualified residence located within such
census tract which is sold to a qualified homeowner,
subsection (d)(2) shall be applied by substituting `120
percent' for `140 percent',
``(D) promulgates standards with respect to
reasonable qualified development costs and fees,
``(E) promulgates standards with respect to
construction quality which are consistent with building
codes or other standards required by the State or local
jurisdiction in which the project is located,
``(F) in the case of any neighborhood homes credit
agency which makes an allocation to a qualified project
which includes any qualified residence to which
subsection (i) applies, promulgates standards with
respect to protecting the owners of such residences,
including the capacity of such owners to pay
rehabilitation costs not covered by the credit provided
by this section and providing for the disclosure to
such owners of their rights and responsibilities with
respect to the rehabilitation of such residences,
``(G) submits to the Secretary (at such time and in
such manner as the Secretary may prescribe) an annual
report specifying--
``(i) the amount of the neighborhood homes
credits allocated to each qualified project for
the previous year,
``(ii) with respect to each qualified
residence completed in the preceding calendar
year--
``(I) the census tract in which
such qualified residence is located,
``(II) with respect to the
qualified project that includes such
qualified residence, the year in which
such project received an allocation
under this section,
``(III) whether such qualified
residence was new, substantially
rehabilitated and sold to a qualified
homeowner, or substantially
rehabilitated pursuant to subsection
(i),
``(IV) the eligible development
costs of such qualified residence,
``(V) the amount of the
neighborhood homes credit with respect
to such qualified residence,
``(VI) the sales price of such
qualified residence, if applicable, and
``(VII) the family income of the
qualified homeowner (expressed as a
percentage of the applicable area
median family income for the location
of the qualified residence), and
``(iii) such other information as the
Secretary may require,
``(H) makes available to the general public a
written explanation for any allocation of a
neighborhood homes credit dollar amount which is not
made in accordance with established priorities and
selection criteria of the neighborhood homes credit
agency, and
``(I) provide educational outreach on application
and compliance requirements, including for small
residential builders and remodelers.
``(2) Alternative for certain states.--
``(A) In general.--In the case of any State which,
for a calendar year, is an applicable State (as defined
in subparagraph (B)), in lieu of the requirements under
subparagraphs (B) and (C) of paragraph (1), the
neighborhood homes credit agency of the State may elect
to allocate not more than 40 percent of amounts
allocated in the previous year (or for allocations made
in the first allocation year under this section, not
more than 40 percent of the neighborhood homes credit
ceiling for such year) to projects with respect to
qualified residences which are described in either
subparagraph (B) or (C) of paragraph (1).
``(B) Applicable state.--For purposes of this
paragraph, the term `applicable State' means a State
which, for purposes of the determining the amount under
subsection (e)(3)(A)(i) for the calendar year with
respect to such State, received the amount described in
subclause (II) of such subsection.
``(3) Qualified allocation plan.--For purposes of this
subsection, the term `qualified allocation plan' means any plan
which--
``(A) sets forth the selection criteria to be used
to prioritize qualified projects for allocations of
State neighborhood homes credit dollar amounts,
including--
``(i) the need for new or substantially
rehabilitated owner-occupied homes in the area
addressed by the project,
``(ii) the expected contribution of the
project to neighborhood stability and
revitalization, including the impact on
neighborhood residents,
``(iii) the capability and prior
performance of the project sponsor, and
``(iv) the likelihood the project will
result in long-term homeownership,
``(B) has been made available for public comment,
``(C) as determined by the neighborhood homes
credit agency, is likely to result in the selection of
highly qualified applicants while also minimizing, to
the extent practicable, application costs and barriers
to entry for small residential builders and re-
modelers, and
``(D) provides a procedure that the neighborhood
homes credit agency (or any agent or contractor of such
agency) shall follow for purposes of--
``(i) identifying noncompliance with any
provisions of this section, and
``(ii) notifying the Internal Revenue
Service of any such noncompliance of which the
agency becomes aware.
``(g) Repayment.--
``(1) In general.--
``(A) Sold during 5-year period.--If a qualified
residence is sold during the 5-year period beginning
immediately after the affordable sale of such qualified
residence referred to in subsection (a), the seller
shall transfer an amount equal to the repayment amount
to the relevant neighborhood homes credit agency.
``(B) Use of repayments.--A neighborhood homes
credit agency shall use any amount received pursuant to
subparagraph (A) only for purposes of qualified
projects.
``(2) Repayment amount.--For purposes of paragraph (1)(A)--
``(A) In general.--The repayment amount is an
amount equal to the applicable percentage of the gain
from the sale to which the repayment relates.
``(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage is 50
percent, reduced by 10 percentage points for each year
of the 5-year period referred to in paragraph (1)(A)
which ends before the date of such sale.
``(3) Lien for repayment amount.--A neighborhood homes
credit agency receiving an allocation under this section shall
place a lien on each qualified residence that is built or
rehabilitated as part of a qualified project for an amount such
agency deems necessary to ensure potential repayment pursuant
to paragraph (1)(A).
``(4) Waiver.--
``(A) In general.--The neighborhood homes credit
agency may waive the repayment required under paragraph
(1)(A) if the agency determines that making a repayment
would constitute a hardship to the seller.
``(B) Hardship.--For purposes of subparagraph (A),
with respect to the seller, a hardship may include--
``(i) divorce,
``(ii) disability,
``(iii) illness, or
``(iv) any other hardship identified by the
neighborhood homes credit agency for purposes
of this paragraph.
``(h) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Neighborhood homes credit agency.--The term
`neighborhood homes credit agency' means the agency designated
by the governor of a State as the neighborhood homes credit
agency of the State.
``(2) Qualified project.--The term `qualified project'
means a project that a neighborhood homes credit agency
certifies will build or substantially rehabilitate one or more
qualified residences.
``(3) Determinations of family income.--Rules similar to
the rules of section 143(f)(2) shall apply for purposes of this
section.
``(4) Possessions treated as states.--The term `State'
includes the District of Columbia and the possessions of the
United States.
``(5) Special rules related to condominiums and cooperative
housing corporations.--
``(A) Determination of development costs.--In the
case of a qualified residence described in clause (ii)
or (iii) of subsection (c)(1)(A), the reasonable
development costs and eligible development costs of
such qualified residence shall be an amount equal to
such costs, respectively, of the entire condominium or
cooperative housing property in which such qualified
residence is located, multiplied by a fraction--
``(i) the numerator of which is the total
floor space of such qualified residence, and
``(ii) the denominator of which is the
total floor space of all residences within such
property.
``(B) Tenant-stockholders of cooperative housing
corporations treated as owners.--In the case of a
cooperative housing corporation (as such term is
defined in section 216(b)), a tenant-stockholder shall
be treated as owning the house or apartment which such
person is entitled to occupy.
``(6) Related party sales not treated as affordable
sales.--
``(A) In general.--A sale between related persons
shall not be treated as an affordable sale.
``(B) Related persons.--For purposes of this
paragraph, a person (in this subparagraph referred to
as the `related person') is related to any person if
the related person bears a relationship to such person
specified in section 267(b) or 707(b)(1), or the
related person and such person are engaged in trades or
businesses under common control (within the meaning of
subsections (a) and (b) of section 52). For purposes of
the preceding sentence, in applying section 267(b) or
707(b)(1), `10 percent' shall be substituted for `50
percent'.
``(7) Inflation adjustment.--
``(A) In general.--In the case of a calendar year
after 2026, the dollar amounts in subsections
(b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and
(i)(2)(C) shall each be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting `calendar year
2025' for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--
``(i) In the case of the dollar amounts in
subsections (b)(3)(A) and (i)(2)(C), any
increase under paragraph (1) which is not a
multiple of $1,000 shall be rounded to the
nearest multiple of $1,000.
``(ii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(I), any increase under
paragraph (1) which is not a multiple of $0.01
shall be rounded to the nearest multiple of
$0.01.
``(iii) In the case of the dollar amount in
subsection (e)(3)(A)(i)(II), any increase under
paragraph (1) which is not a multiple of
$100,000 shall be rounded to the nearest
multiple of $100,000.
``(8) Report.--
``(A) In general.--The Secretary shall annually
issue a report, to be made available to the public,
which contains the information submitted pursuant to
subsection (f)(1)(G).
``(B) De-identification.--The Secretary shall
ensure that any information made public pursuant to
subparagraph (A) excludes any information that would
allow for the identification of qualified homeowners.
``(9) List of qualified census tracts.--The Secretary of
Housing and Urban Development shall, for each year, make
publicly available a list of qualified census tracts under--
``(A) on a combined basis, clauses (i) and (ii) of
subsection (c)(2)(A),
``(B) clause (iii) of such subsection, and
``(C) subsection (i)(5)(A).
``(10) Denial of deductions if converted to rental
housing.--If, during the 5-year period beginning immediately
after the affordable sale of a qualified residence referred to
in subsection (a), an individual who owns a qualified residence
(whether or not such individual was the purchaser in such
affordable sale) fails to use such qualified residence as such
individual's principal residence for any period of time, no
deduction shall be allowed for expenses paid or incurred by
such individual with respect to renting, during such period of
time, such qualified residence.
``(i) Application of Credit With Respect to Owner-Occupied
Rehabilitations.--
``(1) In general.--In the case of a qualified
rehabilitation by the taxpayer of any qualified residence which
is owned (as of the date that the written binding contract
referred to in paragraph (3) is entered into) by a specified
homeowner, the rules of paragraphs (2) through (7) shall apply.
``(2) Alternative credit determination.--In the case of any
qualified residence described in paragraph (1), the
neighborhood homes credit determined under subsection (a) with
respect to such residence shall (in lieu of any credit
otherwise determined under subsection (a) with respect to such
residence) be allowed in the taxable year during which the
qualified rehabilitation is completed (as determined by the
neighborhood homes credit agency) and shall be equal to the
least of--
``(A) the excess (if any) of--
``(i) the amounts paid or incurred by the
taxpayer for the qualified rehabilitation of
the qualified residence to the extent that such
amounts are certified by the neighborhood homes
credit agency (at the time of the completion of
such rehabilitation) as meeting the standards
specified pursuant to subsection (f)(1)(D),
over
``(ii) any amounts paid to such taxpayer
for such rehabilitation,
``(B) 50 percent of the amounts described in
subparagraph (A)(i), or
``(C) $50,000.
``(3) Qualified rehabilitation.--
``(A) In general.--For purposes of this subsection,
the term `qualified rehabilitation' means a
rehabilitation or reconstruction performed pursuant to
a written binding contract between the taxpayer and the
specified homeowner if the amount paid or incurred by
the taxpayer in the performance of such rehabilitation
or reconstruction exceeds the dollar amount in effect
under subsection (b)(3)(A).
``(B) Application of limitation to expenses paid or
incurred after allocation.--A rule similar to the rule
of section (b)(4) shall apply for purposes of this
subsection.
``(4) Specified homeowner.--For purposes of this
subsection, the term `specified homeowner' means, with respect
to a qualified residence, an individual--
``(A) who owns and uses such qualified residence as
the principal residence of such individual as of the
date that the written binding contract referred to in
paragraph (3) is entered into, and
``(B) whose family income (determined as of such
date) does not exceed the median family income for the
applicable area (with respect to the census tract in
which the qualified residence is located).
``(5) Additional census tracts in which owner-occupied
residences may be located.--In the case of any qualified
residence described in paragraph (1), the term `qualified
census tract' includes any census tract which--
``(A) meets the requirements of subsection
(c)(2)(A)(i) without regard to subclause (III) thereof,
and
``(B) is designated by the neighborhood homes
credit agency for purposes of this paragraph.
``(6) Modification of repayment requirement.--In the case
of any qualified residence described in paragraph (1),
subsection (g) shall be applied by beginning the 5-year period
otherwise described therein on the date on which the qualified
homeowner acquired such residence.
``(7) Related parties.--Paragraph (1) shall not apply if
the taxpayer is the owner of the qualified residence described
in paragraph (1) or is related (within the meaning of
subsection (h)(6)(B)) to such owner.
``(8) Pyrrhotite remediation.--The requirement of
subsection (c)(1)(D) shall not apply to a qualified
rehabilitation under this subsection of a qualified residence
that is documented by an engineer's report and core testing to
have a foundation that is adversely impacted by pyrrhotite or
other iron sulfide minerals.
``(j) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
section, including regulations that prevent avoidance of the rules, and
abuse of the purposes, of this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) is amended by striking ``plus'' at the end of paragraph (40), by
striking the period at the end of paragraph (41) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(42) the neighborhood homes credit determined under
section 42A(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) is amended by redesignating clauses (iv) through (xii) as
clauses (v) through (xiii), respectively, and by inserting after clause
(iii) the following new clause:
``(iv) the credit determined under section
42A,''.
(d) Basis Adjustments.--
(1) Energy efficient home improvement credit.--Section
25C(g) is amended by adding after the first sentence the
following new sentence: ``This subsection shall not apply for
purposes of determining the eligible development costs or
adjusted basis of any building under section 42A.''.
(2) Residential clean energy credit.--Section 25D(f) is
amended by adding after the first sentence the following new
sentence: ``This subsection shall not apply for purposes of
determining the eligible development costs or adjusted basis of
any building under section 42A.''.
(3) New energy efficient home credit.--Section 45L(e) is
amended by inserting ``or for purposes of determining the
eligible development costs or adjusted basis of any building
under section 42A'' after ``section 42''.
(e) Exclusion From Gross Income.--Part III of subchapter B of
chapter 1 is amended by inserting before section 140 the following new
section:
``SEC. 139M. STATE ENERGY SUBSIDIES FOR QUALIFIED RESIDENCES.
``(a) Exclusion From Gross Income.--Gross income shall not include
the value of any subsidy provided to a taxpayer (whether directly or
indirectly) by any State energy office (as defined in section 124(a) of
the Energy Policy Act of 2005 (42 U.S.C. 15821(a))) for purposes of any
energy improvements made to a qualified residence (as defined in
section 42A(c)(1)).''.
(f) Conforming Amendments.--
(1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of
section 469 are each amended by inserting ``or 42A'' after
``section 42''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 42 the following new item:
``Sec. 42A. Neighborhood homes credit.''.
(3) The table of sections for part III of subchapter B of
chapter 1 is amended by inserting before the item relating to
section 140 the following new item:
``Sec. 139M. State energy subsidies for qualified residences.''.
(g) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
SEC. 12003. MODIFICATION OF HISTORIC REHABILITATION TAX CREDIT.
(a) Full Credit Allowed in the Year Building Placed in Service.--
Section 47(a) is amended to read as follows:
``(a) General Rule.--For purposes of section 46, the rehabilitation
credit for any taxable year is 20 percent of the qualified
rehabilitation expenditures.''.
(b) Increase in the Rehabilitation Credit for Certain Small
Projects.--Section 47 is amended by adding at the end the following new
subsection:
``(e) Special Rule Regarding Certain Small Projects.--
``(1) In general.--In the case of any qualifying small
project with respect to which there is an election in effect
under this subsection--
``(A) the total qualified rehabilitation
expenditures taken into account for purposes of this
section with respect to the rehabilitation shall not
exceed $3,750,000,
``(B) subsection (a) shall be applied by
substituting `30 percent' for `20 percent', and
``(C) subject to paragraph (4) and such regulations
or other guidance as the Secretary may provide, the
taxpayer may transfer all or a portion of the credit
determined under this section with respect to such
qualifying small project.
``(2) Qualifying small project.--For purposes of this
subsection, the term `qualifying small project' means any
qualified rehabilitated building or portion thereof if--
``(A) such building is placed in service after the
date of the enactment of this subsection, and
``(B) no credit was allowed under this section
(other than a credits allowed by reason of subsection
(d)) for either of the two immediately preceding
taxable years with respect to such building.
``(3) Special rule for rural projects.--
``(A) In general.--In the case of any qualifying
small project in a rural area, paragraph (1)(A) shall
be applied by substituting `$5,000,000' for
`$3,750,000'.
``(B) Rural area.--For purposes of this
subparagraph, the term `rural area' means any area
other than--
``(i) a city or town that has a population
of greater than 50,000 inhabitants, or
``(ii) the urbanized area contiguous and
adjacent to a city or town described in clause
(i), as defined by the Bureau of the Census
based on the latest decennial census of the
United States.
``(4) Transfer of credit for qualifying small projects.--
``(A) Certification.--
``(i) In general.--A transfer under
paragraph (1)(C) shall be accompanied by a
certificate which includes--
``(I) the certification for the
certified historic structure referred
to in subsection (c)(3),
``(II) the taxpayer's name,
address, tax identification number,
date of project completion, and the
amount of credit being transferred,
``(III) the transferee's name,
address, tax identification number, and
the amount of credit being transferred,
and
``(IV) such other information as
may be required by the Secretary.
``(ii) Transferability of certificate.--A
certificate issued under this subsection to a
taxpayer shall be transferable to any other
taxpayer.
``(B) Tax treatment relating to certificate.--
``(i) Disallowance of deduction.--No
deduction shall be allowed for the amount of
consideration paid or incurred by the
transferee.
``(ii) Allowance of credit.--The amount of
credit transferred under paragraph (1)(C)--
``(I) shall not be allowed to the
transferor for any taxable year, and
``(II) shall be allowable to the
transferee as a credit determined under
this section for the taxable year of
the transferee in which such credit is
transferred.
``(iii) Exclusion.--Gross income shall not
include any amount received in connection with
the transfer of the certificate.
``(C) Recapture and other special rules.--The
taxpayer who claims a credit determined under this
section by reason of a transfer of an amount of credit
under paragraph (1)(A) with respect to an applicable
rural project shall be treated as the taxpayer with
respect to such project for purposes of section 50.
``(D) Information reporting.--The transferor and
the transferee shall each make such reports regarding
the transfer of an amount of credit under paragraph
(1)(C) and containing such information as the Secretary
may require. The reports required by this subparagraph
shall be filed at such time and in such manner as may
be required by the Secretary.
``(E) Regulations.--The Secretary shall prescribe
regulations or other guidance to carry out paragraph
(1)(C) and this paragraph in a manner which is
consistent with applicable requirements with respect to
transfer of credits under section 6418.
``(5) Election.--An election under this subsection shall be
made at such time and in such manner as the Secretary may by
regulations prescribe.''.
(c) Increasing the Type of Buildings Eligible for Rehabilitation.--
Section 47(c)(1)(B)(i)(I) is amended by inserting ``50 percent of''
before ``the adjusted basis''.
(d) Elimination of Rehabilitation Credit Basis Adjustment.--
(1) In general.--Section 50(c) is amended by adding at the
end the following new paragraph:
``(6) Exception for rehabilitation credit.--In the case of
the rehabilitation credit, paragraph (1) shall not apply.''.
(2) Treatment in case of credit allowed to lessee.--Section
50(d) is amended by adding at the end the following: ``In the
case of the rehabilitation credit, paragraph (5)(B) of the
section 48(d) referred to in paragraph (5) of this subsection
shall not apply.''.
(e) Modifications Regarding Certain Tax-Exempt Use Property.--
Section 47(c)(2)(B)(v) is amended by adding at the end the following
new subclause:
``(III) Disqualified lease rules to
apply only in case of government
entity.--For purposes of subclause (I),
except in the case of a tax-exempt
entity described in section
168(h)(2)(A)(i), the determination of
whether property is tax-exempt use
property shall be made under section
168(h) without regard to whether the
property is leased in a disqualified
lease (as defined in section
168(h)(1)(B)(ii)).''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property placed in service after the date of the enactment of
this Act.
(2) Full credit allowed in the year building placed in
service.--The amendment made by subsection (a) shall apply to
property placed in service after December 31, 2025.
SEC. 12004. INCREASE OF EXCLUSION OF GAIN FROM SALE OF PRINCIPAL
RESIDENCE.
(a) In General.--Section 121(b) is amended--
(1) by striking ``$250,000'' and inserting ``$500,000''
each place it appears,
(2) by striking ``500,000'' and inserting ``$1,000,000''
each place it appears,
(3) in paragraph (2)(A), in the heading, by striking
``$500,000'' and inserting ``$1,000,000'', and
(4) by adding at the end the following new paragraph:
``(5) Adjustment for inflation.--In the case of a taxable
year beginning after 2026, the $500,000 and $1,000,000 amounts
in paragraphs (1), (2), and (4) shall be increased by an amount
equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`2025' for `2016' in subparagraph (A)(ii) thereof.
If any increase under this clause is not a multiple of $100,
such increase shall be rounded to the next lowest multiple of
$100.''.
(b) Effective Date.--The amendments made by this section shall
apply to sales and exchanges after December 31, 2025.
SEC. 12005. MIDDLE-INCOME HOUSING TAX CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by inserting after section 42 the following new section:
``SEC. 42A. MIDDLE-INCOME HOUSING CREDIT.
``(a) In General.--For purposes of section 38, the amount of the
middle-income housing credit determined under this section for any
taxable year in the credit period shall be an amount equal to--
``(1) the applicable percentage, of
``(2) the qualified basis of each qualified middle-income
building.
``(b) Applicable Percentage.--
``(1) Determination of applicable percentage.--For purposes
of this section--
``(A) In general.--The term `applicable percentage'
means, with respect to any building, the appropriate
percentage prescribed by the Secretary for the earlier
of--
``(i) the month in which such building is
placed in service, or
``(ii) at the election of the taxpayer, the
month in which the taxpayer and the housing
credit agency enter into an agreement with
respect to such building (which is binding on
such agency, the taxpayer, and all successors
in interest) as to the housing credit dollar
amount to be allocated to such building.
A month may be elected under clause (ii) only if the
election is made not later than the 5th day after the
close of such month. Such an election, once made, shall
be irrevocable.
``(B) Method of prescribing percentages.--The
percentages prescribed by the Secretary for any month
shall be percentages which will yield over a 15-year
period amounts of credit under subsection (a) which
have a present value equal to--
``(i) 50 percent of the qualified basis of
a new building which is not Federally
subsidized for the taxable year, and
``(ii) 20 percent of the qualified basis of
a building not described in clause (i).
``(C) Method of discounting.--The present value
under subparagraph (B) shall be determined--
``(i) as of the last day of the 1st year of
the 15-year period referred to in subparagraph
(B),
``(ii) by using a discount rate equal to 72
percent of the average of the annual Federal
mid-term rate and the annual Federal long-term
rate applicable under section 1274(d)(1) to the
month applicable under clause (i) or (ii) of
subparagraph (A) and compounded annually, and
``(iii) by assuming that the credit
allowable under this section for any year is
received on the last day of such year.
``(2) Minimum credit rate.--
``(A) In general.--The applicable percentage for
any building which is not Federally subsidized for the
taxable year shall not be less than 5 percent.
``(B) Minimum credit rate for federally subsidized
buildings.--In the case of any building to which
subparagraph (A) does not apply, except as provided in
paragraph (3), the applicable percentage shall not be
less than 2 percent.
``(3) Exception for certain federally subsidized
buildings.--In the case of any building to which paragraph
(2)(A) does not apply, the applicable percentage is zero
unless--
``(A) a credit is allowed under section 42 with
respect to such building for the taxable year, and
``(B) such building is financed by tax-exempt bonds
as described in section 42(h)(4).
``(4) Cross references.--
``(A) For treatment of certain rehabilitation
expenditures as separate new buildings, see subsection
(e).
``(B) For determination of applicable percentage
for increases in qualified basis after the 1st year of
the credit period, see subsection (f)(3).
``(C) For authority of housing credit agency to
limit applicable percentage and qualified basis which
may be taken into account under this section with
respect to any building, see subsection (h)(6).
``(c) Qualified Basis; Qualified Middle-Income Building.--For
purposes of this section--
``(1) Qualified basis.--
``(A) Determination.--The qualified basis of any
qualified middle-income building for any taxable year
is an amount equal to--
``(i) the applicable fraction (determined
as of the close of such taxable year) of
``(ii) the eligible basis of such building
(determined under subsection (d)).
``(B) Applicable fraction.--For purposes of
subparagraph (A), the term `applicable fraction' means
the smaller of the unit fraction or the floor space
fraction.
``(C) Unit fraction.--For purposes of subparagraph
(B), the term `unit fraction' means the fraction--
``(i) the numerator of which is the number
of middle-income units in the building, and
``(ii) the denominator of which is the
number of residential rental units (whether or
not occupied) in such building.
``(D) Floor space fraction.--For purposes of
subparagraph (B), the term `floor space fraction' means
the fraction--
``(i) the numerator of which is the total
floor space of the middle-income units in such
building, and
``(ii) the denominator of which is the
total floor space of the residential rental
units (whether or not occupied) in such
building.
``(2) Qualified middle-income building.--The term
`qualified middle-income building' means any building which is
part of a qualified middle-income housing project at all times
during the period--
``(A) beginning on the 1st day in the credit period
on which such building is part of such a project, and
``(B) ending on the last day of the credit period
with respect to such building.
``(d) Eligible Basis.--For purposes of this section--
``(1) New buildings.--The eligible basis of a new building
is its adjusted basis as of the close of the 1st taxable year
of the credit period.
``(2) Existing buildings.--
``(A) In general.--The eligible basis of an
existing building is--
``(i) in the case of a building which meets
the requirements of subparagraph (B), its
adjusted basis as of the close of the 1st
taxable year of the credit period, and
``(ii) zero in any other case.
``(B) Requirements.--A building meets the
requirements of this subparagraph if--
``(i) the building is acquired by purchase
(as defined in section 179(d)(2)),
``(ii) there is a period of at least 10
years between the date of its acquisition by
the taxpayer and the date the building was last
placed in service,
``(iii) the building was not previously
placed in service by the taxpayer or by any
person who was a related person with respect to
the taxpayer as of the time previously placed
in service, and
``(iv) except as provided in subsection
(f)(5), a credit is allowable under subsection
(a) by reason of subsection (e) with respect to
the building.
``(C) Adjusted basis.--For purposes of subparagraph
(A), the adjusted basis of any building shall not
include so much of the basis of such building as is
determined by reference to the basis of other property
held at any time by the person acquiring the building.
``(D) Special rules.--
``(i) Special rules for certain
transfers.--For purposes of determining under
subparagraph (B)(ii) when a building was last
placed in service, there shall not be taken
into account any placement in service--
``(I) in connection with the
acquisition of the building in a
transaction in which the basis of the
building in the hands of the person
acquiring it is determined in whole or
in part by reference to the adjusted
basis of such building in the hands of
the person from whom acquired,
``(II) by a person whose basis in
such building is determined under
section 1014(a) (relating to property
acquired from a decedent),
``(III) by any governmental unit or
qualified nonprofit organization if the
requirements of subparagraph (B)(ii)
are met with respect to the placement
in service by such unit or organization
and all the income from such property
is exempt from Federal income taxation,
``(IV) by any person who acquired
such building by foreclosure (or by
instrument in lieu of foreclosure) of
any purchase-money security interest
held by such person if the requirements
of subparagraph (B)(ii) are met with
respect to the placement in service by
such person and such building is resold
within 12 months after the date such
building is placed in service by such
person after such foreclosure, or
``(V) of a single-family residence
by any individual who owned and used
such residence for no other purpose
than as his principal residence.
``(ii) Related person.--For purposes of
subparagraph (B)(iii), a person (hereinafter in
this subclause referred to as the `related
person') is related to any person if the
related person bears a relationship to such
person specified in section 267(b) or
707(b)(1), or the related person and such
person are engaged in trades or businesses
under common control (within the meaning of
subsections (a) and (b) of section 52).
``(3) Special rules relating to determination of adjusted
basis.--For purposes of this subsection--
``(A) In general.--Except as provided in
subparagraph (B), the adjusted basis of any building
shall be determined without regard to the adjusted
basis of any property which is not residential rental
property.
``(B) Basis of property in common areas, etc.,
included.--
``(i) In general.--Except as provided in
clause (ii), the adjusted basis of any building
shall be determined by taking into account the
adjusted basis of property (of a character
subject to the allowance for depreciation) used
in common areas or provided as comparable
amenities to all residential rental units in
such building.
``(ii) Special rule.--In the case of any
building for which the low-income housing tax
credit is allowable under section 42, the
adjusted basis of the building under this
section shall be determined without regard to
property used in common areas or provided as
comparable amenities to all residential rental
units in such building.
``(C) No reduction for depreciation.--The adjusted
basis of any building shall be determined without
regard to paragraphs (2) and (3) of section 1016(a).
``(4) Special rules for determining eligible basis.--
``(A) Federal grants not taken into account in
determining eligible basis.--The eligible basis of a
building shall not include any costs financed with the
proceeds of a Federally funded grant.
``(B) Increase in credit for buildings in high cost
areas.--
``(i) In general.--In the case of any
building located in a difficult development
area which is designated for purposes of this
subparagraph--
``(I) in the case of a new
building, the eligible basis of such
building shall be 130 percent of such
basis determined without regard to this
subparagraph, and
``(II) in the case of an existing
building, the rehabilitation
expenditures taken into account under
subsection (e) shall be 130 percent of
such expenditures determined without
regard to this subparagraph.
``(ii) Limitation.--Clause (i) shall not
apply to any building if paragraph (1) of
subsection (h) does not apply to any portion of
the eligible basis of such building by reason
of paragraph (9) of such subsection.
``(iii) Difficult development areas.--
``(I) In general.--The term
`difficult development areas' means any
area designated by the Secretary of
Housing and Urban Development as an
area which has high construction, land,
or utility costs relative to area
median gross income, any rural area,
and any Indian area.
``(II) Rural area.--For purposes of
subclause (I), the term `rural area'
means any non-metropolitan area, or any
rural area as defined by section 520 of
the Housing Act of 1949, which is
identified by the qualified allocation
plan under subsection (m)(1)(B).
``(III) Indian area.--For purposes
of subclause (I), the term `Indian
area' means any Indian area (as defined
in section 4(11) of the Native American
Housing Assistance and Self
Determination Act of 1996 (25 U.S.C.
4103(11))).
``(IV) Special rule for buildings
in indian areas.--In the case of an
area which is a difficult development
area solely because it is an Indian
area, a building shall not be treated
as located in such area unless such
building is assisted or financed under
the Native American Housing Assistance
and Self Determination Act of 1996 (25
U.S.C. 4101 et seq.) or the project
sponsor is an Indian tribe (as defined
in section 45A(c)(6)), a tribally
designated housing entity (as defined
in section 4(22) of such Act (25 U.S.C.
4103(22))), or wholly owned or
controlled by such an Indian tribe or
tribally designated housing entity.
``(V) Limit on areas designated.--
The portions of metropolitan
statistical areas which may be
designated for purposes of this
subparagraph shall not exceed an
aggregate area having 20 percent of the
population of such metropolitan
statistical areas. A comparable rule
shall apply to nonmetropolitan areas.
``(iv) Special rules and definitions.--For
purposes of this subparagraph--
``(I) population shall be
determined on the basis of the most
recent decennial census for which data
are available,
``(II) area median gross income
shall be determined in accordance with
subsection (g)(4),
``(III) the term `metropolitan
statistical area' has the same meaning
as when used in section 143(k)(2)(B),
and
``(IV) the term `nonmetropolitan
area' means any county (or portion
thereof) which is not within a
metropolitan statistical area.
``(v) Buildings designated by state housing
credit agency.--Any building which is
designated by the State housing credit agency
as requiring the increase in credit under this
subparagraph in order for such building to be
financially feasible as part of a qualified
middle-income housing project shall be treated
for purposes of this subparagraph as located in
a difficult development area which is
designated for purposes of this subparagraph.
``(5) Credit allowable for certain buildings acquired
during 10-year period.--On application by the taxpayer, the
Secretary may waive paragraph (2)(B)(ii) with respect to any
building acquired from an insured depository institution in
default (as defined in section 3 of the Federal Deposit
Insurance Act) or from a receiver or conservator of such an
institution.
``(6) Acquisition of building before end of prior credit
period.--
``(A) In general.--Under regulations prescribed by
the Secretary, in the case of a building described in
subparagraph (B) (or interest therein) which is
acquired by the taxpayer--
``(i) paragraph (2)(B) shall not apply, but
``(ii) the credit allowable by reason of
subsection (a) to the taxpayer for any period
after such acquisition shall be equal to the
amount of credit which would have been
allowable under subsection (a) for such period
to the prior owner referred to in subparagraph
(B) had such owner not disposed of the
building.
``(B) Description of building.--A building is
described in this subparagraph if--
``(i) a credit was allowed by reason of
subsection (a) to any prior owner of such
building, and
``(ii) the taxpayer acquired such building
before the end of the credit period for such
building with respect to such prior owner
(determined without regard to any disposition
by such prior owner).
``(e) Rehabilitation Expenditures Treated as Separate New
Building.--
``(1) In general.--Rehabilitation expenditures paid or
incurred by the taxpayer with respect to any building shall be
treated for purposes of this section as a separate new
building.
``(2) Rehabilitation expenditures.--For purposes of
paragraph (1)--
``(A) In general.--The term `rehabilitation
expenditures' means amounts chargeable to capital
account and incurred for property (or additions or
improvements to property) of a character subject to the
allowance for depreciation in connection with the
rehabilitation of a building.
``(B) Cost of acquisition, etc., not included.--
Such term does not include the cost of acquiring any
building (or interest therein) or any amount not
permitted to be taken into account under paragraph (3)
of subsection (d).
``(C) Certain relocation costs.--In the case of a
rehabilitation of a building to which section 280B does
not apply, costs relating to the relocation of
occupants, including--
``(i) amounts paid to occupants,
``(ii) amounts paid to third parties for
services relating to such relocation, and
``(iii) amounts paid for temporary housing
for occupants,
shall be treated as chargeable to capital account and
taken into account as rehabilitation expenditures.
``(3) Minimum expenditures to qualify.--
``(A) In general.--Paragraph (1) shall apply to
rehabilitation expenditures with respect to any
building only if--
``(i) the expenditures are allocable to 1
or more middle-income units or substantially
benefit such units, and
``(ii) the amount of such expenditures
during any 24-month period meets the
requirements of whichever of the following
subclauses requires the greater amount of such
expenditures:
``(I) The requirement of this
subclause is met if such amount is not
less than 20 percent of the adjusted
basis of the building (determined as of
the 1st day of such period and without
regard to paragraphs (2) and (3) of
section 1016(a)).
``(II) The requirement of this
subclause is met if the qualified basis
attributable to such amount, when
divided by the number of middle-income
units in the building, is equal to or
greater than the dollar amount in
effect under section
42(e)(3)(A)(ii)(II) for the calendar
year in which such expenditures are
treated as placed in service under
paragraph (4).
``(B) Date of determination.--The determination
under subparagraph (A) shall be made as of the close of
the 1st taxable year in the credit period with respect
to such expenditures.
``(4) Special rules.--For purposes of applying this section
with respect to expenditures which are treated as a separate
building by reason of this subsection--
``(A) such expenditures shall be treated as placed
in service at the close of the 24-month period referred
to in paragraph (3)(A), and
``(B) the applicable fraction under subsection
(c)(1) shall be the applicable fraction for the
building (without regard to paragraph (1)) with respect
to which the expenditures were incurred.
Nothing in subsection (d)(2) shall prevent a credit from being
allowed by reason of this subsection.
``(5) No double counting.--Rehabilitation expenditures may,
at the election of the taxpayer, be taken into account under
this subsection or subsection (d)(2)(A)(i) but not under both
such subsections.
``(6) Regulations to apply subsection with respect to group
of units in building.--The Secretary may prescribe regulations,
consistent with the purposes of this subsection, treating a
group of units with respect to which rehabilitation
expenditures are incurred as a separate new building.
``(f) Definition and Special Rules Relating to Credit Period.--
``(1) Credit period defined.--For purposes of this section,
the term `credit period' means, with respect to any building,
the period of 15 taxable years beginning with--
``(A) the taxable year in which the building is
placed in service, or
``(B) at the election of the taxpayer, the
succeeding taxable year,
but only if the building is a qualified middle-income building
as of the close of the 1st year of such period. The election
under subparagraph (B), once made, shall be irrevocable.
``(2) Special rule for 1st year of credit period.--
``(A) In general.--The credit allowable under
subsection (a) with respect to any building for the 1st
taxable year of the credit period shall be determined
by substituting for the applicable fraction under
subsection (c)(1) the fraction--
``(i) the numerator of which is the sum of
the applicable fractions determined under
subsection (c)(1) as of the close of each full
month of such year during which such building
was in service, and
``(ii) the denominator of which is 12.
``(B) Disallowed 1st-year credit allowed in 16th
year.--Any reduction by reason of subparagraph (A) in
the credit allowable (without regard to subparagraph
(A)) for the 1st taxable year of the credit period
shall be allowable under subsection (a) for the 1st
taxable year following the credit period.
``(3) Determination of applicable percentage with respect
to increases in qualified basis after 1st year of credit
period.--
``(A) In general.--In the case of any building
which was a qualified middle-income building as of the
close of the 1st year of the credit period, if--
``(i) as of the close of any taxable year
in the credit period (after the 1st year of
such period) the qualified basis of such
building, exceeds
``(ii) the qualified basis of such building
as of the close of the 1st year of the credit
period,
the applicable percentage which shall apply under
subsection (a) for the taxable year to such excess
shall be the percentage equal to \2/3\ of the
applicable percentage which (after the application of
subsection (h)) would but for this paragraph apply to
such basis.
``(B) 1st year computation applies.--A rule similar
to the rule of paragraph (2)(A) shall apply to any
increase in qualified basis to which subparagraph (A)
applies for the 1st year of such increase.
``(4) Dispositions of property.--If a building (or an
interest therein) is disposed of during any year for which
credit is allowable under subsection (a), such credit shall be
allocated between the parties on the basis of the number of
days during such year the building (or interest) was held by
each.
``(5) Credit period for existing buildings not to begin
before rehabilitation credit allowed.--
``(A) In general.--The credit period for an
existing building shall not begin before the 1st
taxable year of the credit period for rehabilitation
expenditures with respect to the building.
``(B) Acquisition credit allowed for certain
buildings not allowed a rehabilitation credit.--
``(i) In general.--In the case of a
building described in clause (ii)--
``(I) subsection (d)(2)(B)(iv)
shall not apply, and
``(II) the credit period for such
building shall not begin before the
taxable year which would be the 1st
taxable year of the credit period for
rehabilitation expenditures with
respect to the building under the
modifications described in clause
(ii)(II).
``(ii) Building described.--A building is
described in this clause if--
``(I) a waiver is granted under
subsection (d)(4) with respect to the
acquisition of the building, and
``(II) a credit would be allowed
for rehabilitation expenditures with
respect to such building if subsection
(e)(3)(A)(ii)(I) did not apply and if
the dollar amount in effect under
subsection (e)(3)(A)(ii)(II) were two-
thirds of such amount.
``(g) Qualified Middle-Income Housing Project.--For purposes of
this section--
``(1) In general.--The term `qualified middle-income
housing project' means any project for residential rental
property if--
``(A) 60 percent or more of the residential units
in such project are both rent-restricted and occupied
by individuals whose income is 100 percent or less of
area median gross income, and
``(B) not less than 20 percent of the residential
units in such project are units which--
``(i) are described in subparagraph (A),
and
``(ii) are not residential units which are
taken into account under section 42.
``(2) Rent-restricted units.--
``(A) In general.--For purposes of paragraph (1), a
residential unit is rent-restricted if the gross rent
with respect to such unit does not exceed 30 percent of
the imputed income limitation applicable to such unit.
For purposes of the preceding sentence, the amount of
the income limitation under paragraph (1) applicable
for any period shall not be less than such limitation
applicable for the earliest period the building (which
contains the unit) was included in the determination of
whether the project is a qualified middle-income
housing project.
``(B) Gross rent.--For purposes of subparagraph
(A), gross rent--
``(i) includes any utility allowance
determined by the Secretary after taking into
account such determinations under section 8 of
the United States Housing Act of 1937,
``(ii) does not include any fee for a
supportive service which is paid to the owner
of the unit (on the basis of the middle-income
status of the tenant of the unit) by any
governmental program of assistance (or by an
organization described in section 501(c)(3) and
exempt from tax under section 501(a)) if such
program (or organization) provides assistance
for rent and the amount of assistance provided
for rent is not separable from the amount of
assistance provided for supportive services,
and
``(iii) does not include any rental payment
to the owner of the unit to the extent such
owner pays an equivalent amount to the Farmers'
Home Administration under section 515 of the
Housing Act of 1949.
For purposes of clause (ii), the term `supportive
service' means any service provided under a planned
program of services designed to enable residents of a
residential rental property to remain independent and
avoid placement in a hospital, nursing home, or
intermediate care facility for the mentally or
physically handicapped.
``(C) Imputed income limitation applicable to
unit.--For purposes of this paragraph, the imputed
income limitation applicable to a unit is the income
limitation which would apply under paragraph (1) to
individuals occupying the unit if the number of
individuals occupying the unit were as follows:
``(i) In the case of a unit which does not
have a separate bedroom, 1 individual.
``(ii) In the case of a unit which has 1 or
more separate bedrooms, 1.5 individuals for
each separate bedroom.
In the case of a project with respect to which a credit
is allowable by reason of this section and for which
financing is provided by a bond described in section
142(a)(7), the imputed income limitation shall apply in
lieu of the otherwise applicable income limitation for
purposes of applying section 142(d)(4)(B)(ii).
``(D) Treatment of units occupied by individuals
whose incomes rise above limit.--
``(i) In general.--Except as provided in
clause (ii), notwithstanding an increase in the
income of the occupants of a middle-income unit
above the income limitation applicable under
paragraph (1), such unit shall continue to be
treated as a middle-income unit if the income
of such occupants initially met such income
limitation and such unit continues to be rent-
restricted.
``(ii) Next available unit must be rented
to middle-income tenant if income rises above
140 percent of income limit.--If the income of
the occupants of the unit increases above 140
percent of the income limitation applicable
under paragraph (1), clause (i) shall cease to
apply to such unit if any residential rental
unit in the building (of a size comparable to,
or smaller than, such unit) is occupied by a
new resident whose income exceeds such income
limitation.
``(3) Date for meeting requirements.--
``(A) In general.--Except as otherwise provided in
this paragraph, a building shall be treated as a
qualified middle-income building only if the project
(of which such building is a part) meets the
requirements of paragraph (1) not later than the close
of the 1st year of the credit period for such building.
``(B) Buildings which rely on later buildings for
qualification.--
``(i) In general.--In determining whether a
building (hereinafter in this subparagraph
referred to as the `prior building') is a
qualified middle-income building, the taxpayer
may take into account 1 or more additional
buildings placed in service during the 12-month
period described in subparagraph (A) with
respect to the prior building only if the
taxpayer elects to apply clause (ii) with
respect to each additional building taken into
account.
``(ii) Treatment of elected buildings.--In
the case of a building which the taxpayer
elects to take into account under clause (i),
the period under subparagraph (A) for such
building shall end at the close of the 12-month
period applicable to the prior building.
``(iii) Date prior building is treated as
placed in service.--For purposes of determining
the credit period for the prior building, the
prior building shall be treated for purposes of
this section as placed in service on the most
recent date any additional building elected by
the taxpayer (with respect to such prior
building) was placed in service.
``(C) Special rule.--A building--
``(i) other than the 1st building placed in
service as part of a project, and
``(ii) other than a building which is
placed in service during the 12-month period
described in subparagraph (A) with respect to a
prior building which becomes a qualified
middle-income building,
shall in no event be treated as a qualified middle-
income building unless the project is a qualified
middle-income housing project (without regard to such
building) on the date such building is placed in
service.
``(D) Projects with more than 1 building must be
identified.--For purposes of this section, a project
shall be treated as consisting of only 1 building
unless, before the close of the 1st calendar year in
the project period (as defined in subsection
(h)(1)(F)(ii)), each building which is (or will be)
part of such project is identified in such form and
manner as the Secretary may provide.
``(4) Certain rules made applicable.--Paragraphs (2) (other
than subparagraph (A) thereof), (3), and (7) of section 142(d),
and section 6652(j), shall apply for purposes of determining
whether any project is a qualified middle-income housing
project and whether any unit is a middle-income unit; except
that, in applying such provisions for such purposes--
``(A) the term `gross rent' shall have the meaning
given such term by paragraph (2)(B) of this subsection,
and
``(B) the term `applicable income limit' means the
limitation under paragraph (1) of this subsection.
``(5) Election to treat building after credit period as not
part of a project.--For purposes of this section, the taxpayer
may elect to treat any building as not part of a qualified
middle-income housing project for any period beginning after
the credit period for such building.
``(6) Special rule where de minimis equity contribution.--
Property shall not be treated as failing to be residential
rental property for purposes of this section merely because the
occupant of a residential unit in the project pays (on a
voluntary basis) to the lessor a de minimis amount to be held
toward the purchase by such occupant of a residential unit in
such project if--
``(A) all amounts so paid are refunded to the
occupant on the cessation of his occupancy of a unit in
the project, and
``(B) the purchase of the unit is not permitted
until after the close of the credit period with respect
to the building in which the unit is located.
Any amount paid to the lessor as described in the preceding
sentence shall be included in gross rent under paragraph (2)
for purposes of determining whether the unit is rent-
restricted.
``(7) Scattered site projects.--Buildings which would (but
for their lack of proximity) be treated as a project for
purposes of this section shall be so treated if all of the
dwelling units in each of the buildings are rent-restricted
(within the meaning of paragraph (2)) residential rental units.
``(8) Waiver of certain recertifications.--On application
by the taxpayer, the Secretary may waive any annual
recertification of tenant income for purposes of this
subsection, if the entire building is occupied by middle-income
tenants.
``(9) Clarification of general public use requirement.--A
project does not fail to meet the general public use
requirement solely because of occupancy restrictions or
preferences that favor tenants--
``(A) with special needs, or
``(B) who are members of a specified group under a
Federal program or State program or policy that
supports housing for such a specified group.
``(h) Limitation on Aggregate Credit Allowable With Respect to
Projects Located in a State.--
``(1) Credit may not exceed credit amount allocated to
building.--
``(A) In general.--The amount of the credit
determined under this section for any taxable year with
respect to any building shall not exceed the housing
credit dollar amount allocated to sOfficial legislative text sourced from the public record (cached on CivicsHQ). Display truncated for length.
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Status
In Committee
- 1Introduced
- 2Committee
- 3Floor
- 4Passed
- 5Signed
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Sponsors
- Rep. Thompson, Mike [D-CA-4]DHouseCA
Cosponsors
- Del. Norton, Eleanor Holmes [D-DC-At Large]
- Del. Plaskett, Stacey E. [D-VI-At Large]
- Rep. Adams, Alma S. [D-NC-12]
- Rep. Bell, Wesley [D-MO-1]
- Rep. Beyer, Donald S. [D-VA-8]
- Rep. Boyle, Brendan F. [D-PA-2]
- Rep. Brownley, Julia [D-CA-26]
- Rep. Carson, André [D-IN-7]
- Rep. Chu, Judy [D-CA-28]
- Rep. Costa, Jim [D-CA-21]
- Rep. Courtney, Joe [D-CT-2]
- Rep. Craig, Angie [D-MN-2]
- Rep. Davis, Danny K. [D-IL-7]
- Rep. DeLauro, Rosa L. [D-CT-3]
- Rep. DelBene, Suzan K. [D-WA-1]
- Rep. Evans, Dwight [D-PA-3]
- Rep. Frankel, Lois [D-FL-22]
- Rep. Garamendi, John [D-CA-10]
- Rep. Goldman, Daniel S. [D-NY-10]
- Rep. Gomez, Jimmy [D-CA-34]
- Rep. Horsford, Steven [D-NV-4]
- Rep. Johnson, Julie [D-TX-32]
- Rep. Kennedy, Timothy M. [D-NY-26]
- Rep. Larson, John B. [D-CT-1]
- Rep. Mannion, John W. [D-NY-22]
- Rep. Matsui, Doris O. [D-CA-7]
- Rep. McBride, Sarah [D-DE-At Large]
- Rep. McClellan, Jennifer L. [D-VA-4]
- Rep. McDonald Rivet, Kristen [D-MI-8]
- Rep. McGarvey, Morgan [D-KY-3]
- Rep. Moore, Gwen [D-WI-4]
- Rep. Mrvan, Frank J. [D-IN-1]
- Rep. Panetta, Jimmy [D-CA-19]
- Rep. Pingree, Chellie [D-ME-1]
- Rep. Quigley, Mike [D-IL-5]
- Rep. Riley, Josh [D-NY-19]
- Rep. Salinas, Andrea [D-OR-6]
- Rep. Sánchez, Linda T. [D-CA-38]
- Rep. Schneider, Bradley Scott [D-IL-10]
- Rep. Scholten, Hillary J. [D-MI-3]
- Rep. Sewell, Terri A. [D-AL-7]
- Rep. Suozzi, Thomas R. [D-NY-3]
- Rep. Thanedar, Shri [D-MI-13]
- Rep. Titus, Dina [D-NV-1]
- Rep. Vindman, Eugene Simon [D-VA-7]
Votes
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