I 

119TH CONGRESS 

1ST SESSION H. R. 308 

To amend the Internal Revenue Code of 1986 to provide tax incentives 

for rental housing for members of the Armed Forces. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2025 

Mr. MOORE of Utah (for himself and Ms. STRICKLAND) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax incentives for rental housing for members of the 

Armed Forces. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; SENSE OF CONGRESS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Low Income Housing for Defense Communities Act’’. 

6 (b) SENSE OF CONGRESS.—It is the sense of Con7 gress that in addition to expanding and strengthening the 

8 affordable housing credit for active duty military members 

9 through the provisions in the Low Income Housing for De10 fense Communities Act, further steps should be taken to 


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1 drive investment into affordable housing projects in the 

2 United States and boost overall housing supply for work3 ers and families in the United States, such as the Afford4 able Housing Credit Improvement Act of 2023. 

5 SEC. 2. TAX INCENTIVES FOR RENTAL HOUSING FOR MEM6 BERS OF THE ARMED FORCES. 

7 (a) MILITARY BASIC HOUSING ALLOWANCE NOT

8 TAKEN INTO ACCOUNT IN APPLYING CERTAIN INCOME

9 RESTRICTIONS ON RESIDENTIAL RENTAL PROJECTS.— 

10 (1) LOW-INCOME HOUSING TAX CREDIT.—Sec11 tion 42(i) of the Internal Revenue Code of 1986 is 

12 amended by adding at the end the following new 

13 paragraph: 

14 ‘‘(10) INCOME DETERMINED WITHOUT REGARD

15 TO MILITARY BASIC HOUSING ALLOWANCE.—Pay16 ments under section 403 of title 37, United States 

17 Code, as a basic pay allowance for housing shall not 

18 be taken into account in determining income for 

19 purposes of this section.’’. 

20 (2) TAX-EXEMPT BONDS FOR QUALIFIED RESI21 DENTIAL RENTAL PROJECTS.— 

22 (A) IN GENERAL.—Section 142(d)(2)(B) 

23 of such Code, as amended by subparagraph (B), 

24 is amended by inserting after clause (i) the fol25 lowing new clause: 


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1 ‘‘(ii) INCOME DETERMINED WITHOUT

2 REGARD TO MILITARY BASIS HOUSING AL3 LOWANCE.—Payments under section 403 

4 of title 37, United States Code, as a basic 

5 pay allowance for housing shall not be 

6 taken into account in determining income 

7 for purposes of clause (i).’’. 

8 (B) REPEAL OF DEADWOOD.—Section 

9 142(d)(2)(B) of such Code is amended by strik10 ing clauses (ii), (iii), and (iv). 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to determinations 

13 made after the date of the enactment of this Act. 

14 (b) INCREASE IN LOW-INCOME HOUSING CREDIT

15 FOR BUILDINGS NEAR CERTAIN LARGE MILITARY IN16 STALLATION.— 

17 (1) IN GENERAL.—Section 42(d)(5)(B) of the 

18 Internal Revenue Code of 1986 is amended by add19 ing at the end the following new clause: 

20 ‘‘(vi) BUILDINGS NEAR CERTAIN

21 LARGE MILITARY INSTALLATION.— 

22 ‘‘(I) IN GENERAL.—Any building 

23 which is located within 15 miles of a 

24 large military installation shall be 

25 treated as located in a difficult develVerDate Sep 11 2014 03:57 Feb 01, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H308.IH H308

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1 opment area which is designated for 

2 purposes of this subparagraph. 

3 ‘‘(II) LARGE MILITARY INSTAL4 LATION.—For purposes of this clause, 

5 the term ‘large military installation’ 

6 means any military installation with a 

7 total plant replacement value (as de8 termined by the Secretary of the De9 fense) in excess of $2,833,000,000.’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall apply to buildings placed in 

12 service after the date of the enactment of this Act. 

13 (3) NO REQUIREMENT THAT BUILDINGS BE OC14 CUPIED SOLELY BY MEMBERS OF THE ARMED

15 FORCES.—Nothing in the amendment made by this 

16 subsection shall be applied or interpreted to require 

17 that buildings described in section 42(d)(5)(B)(vi) of 

18 the Internal Revenue Code of 1986 (as added by 

19 this section) be occupied solely by members of the 

20 Armed Forces. 

Æ 


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