I 
119TH CONGRESS 
1ST SESSION H. R. 2725 
To amend the Internal Revenue Code of 1986 to reform the low-income 
housing credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 8, 2025 
Mr. LAHOOD (for himself, Ms. DELBENE, Ms. TENNEY, Mr. BEYER, Mr. 
FEENSTRA, Mr. PANETTA, Mr. BUCHANAN, Mr. LARSON of Connecticut, 
Mr. KELLY of Pennsylvania, Mr. DAVIS of Illinois, Mr. ESTES, Ms. 
SA´NCHEZ, Mrs. MILLER of West Virginia, Ms. SEWELL, Mr. MURPHY, 
Ms. CHU, Mr. KUSTOFF, Ms. MOORE of Wisconsin, Mr. FITZPATRICK, 
Mr. EVANS of Pennsylvania, Mr. MOORE of Utah, Mr. SCHNEIDER, Ms. 
MALLIOTAKIS, Mr. GOMEZ, Mr. CAREY, Mr. HORSFORD, Mr. YAKYM, Mr. 
SUOZZI, Mr. MILLER of Ohio, Mr. LIEU, Mr. EMMER, Mr. NEGUSE, Mr. 
HUDSON, Mr. MRVAN, Mr. RESCHENTHALER, Ms. MCCOLLUM, Mrs. 
HOUCHIN, Ms. MCBRIDE, Mr. FLOOD, Ms. KELLY of Illinois, Mr. 
FINSTAD, Ms. SCHAKOWSKY, Mr. KILEY of California, Ms. OMAR, Ms. 
SALAZAR, Mr. PETERS, Mr. HUIZENGA, Mrs. RAMIREZ, Mr. BALDERSON, 
Ms. BUDZINSKI, Mr. MOOLENAAR, Mr. PAPPAS, Mr. GOODEN, Mrs. 
BEATTY, Mr. LAMALFA, Mr. GARCIA of California, Mr. BERGMAN, Ms. 
GOODLANDER, Mr. FLEISCHMANN, Mrs. DINGELL, Mrs. KIM, Mr. 
CASTEN, Mr. GARBARINO, Ms. DEGETTE, Mr. COLE, Mr. VARGAS, Mr. 
VALADAO, Ms. BARRAGA´N, Mr. CARTER of Georgia, Ms. TLAIB, Mr. 
WALBERG, Mr. BERA, Mr. CALVERT, Mr. COSTA, Mr. ROUZER, Ms. 
HOULAHAN, Mr. BARR, Mr. FOSTER, Mr. LAWLER, Mr. QUIGLEY, Mr. 
GUEST, Ms. DEAN of Pennsylvania, Mr. TAYLOR, Mr. GOLDMAN of New 
York, Mr. EVANS of Colorado, Mr. MORELLE, Ms. MALOY, Mr. TORRES 
of New York, Mr. ZINKE, Mr. CROW, Mr. SESSIONS, Ms. PETTERSEN, 
Mr. ISSA, Mr. MULLIN, Mr. NUNN of Iowa, Mr. VASQUEZ, Mr. 
LANGWORTHY, Ms. STEVENS, Mr. GUTHRIE, Mr. CLEAVER, Mrs. 
HINSON, Mr. DELUZIO, Mr. WITTMAN, Mr. MAGAZINER, Mr. JOHNSON 
of South Dakota, Ms. MATSUI, Mrs. KIGGANS
of Virginia, Mr. 
THANEDAR, Mr. COMER, Mrs. MCIVER, Mr. ROGERS of Kentucky, Mr. 
AMO, Mr. MANN, Ms. BALINT, Mr. BOST, Mr. HUFFMAN, Mr. EZELL, 
Ms. CRAIG, and Mr. STAUBER) introduced the following bill; which was 
referred to the Committee on Ways and Means 
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A BILL 
To amend the Internal Revenue Code of 1986 to reform 
the low-income housing credit, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Affordable Housing Credit Improvement Act of 2025’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—REFORM OF STATE ALLOCATION FORMULAS 
Sec. 101. Increases in State allocations. 
TITLE II—REFORMS RELATING TO TENANT ELIGIBILITY 
Sec. 201. Average income test applicability to exempt facility bonds. 
Sec. 202. Codification of rules relating to increased tenant income. 
Sec. 203. Modification of student occupancy rules. 
Sec. 204. Tenant voucher payments taken into account as rent for certain pur-
poses. 
Sec. 205. Requirement that low-income housing credit-supported housing pro-
tect victims of domestic abuse. 
Sec. 206. Clarification of general public use requirement relating to veterans, 
etc. 
TITLE III—RULES RELATING TO CREDIT ELIGIBILITY AND 
DETERMINATION 
Sec. 301. Reconstruction or replacement period after casualty loss. 
Sec. 302. Modification of previous ownership rules; limitation on acquisition 
basis. 
Sec. 303. Certain relocation costs taken into account as rehabilitation expendi-
tures. 
Sec. 304. Repeal of qualified census tract population cap. 
Sec. 305. Determination of community revitalization plan to be made by hous-
ing credit agency. 
Sec. 306. Prohibition of local approval and contribution requirements. 
Sec. 307. Increase in credit for certain projects designated to serve extremely 
low-income households. 
Sec. 308. Increase in credit for bond-financed projects designated by State 
agency. 
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Sec. 309. Elimination of basis reduction for low-income housing properties en-
ergy efficient commercial building deduction. 
Sec. 310. Restriction of planned foreclosures. 
Sec. 311. Increase of population cap for difficult development areas. 
Sec. 312. Increased cost oversight and accountability. 
Sec. 313. Tax-exempt bond financing requirement. 
TITLE IV—REFORMS RELATING TO NATIVE AMERICAN 
ASSISTANCE 
Sec. 401. Selection criteria under qualified allocation plans. 
Sec. 402. Inclusion of Indian areas as difficult development areas for purposes 
of certain buildings. 
TITLE V—REFORMS RELATING TO RURAL ASSISTANCE 
Sec. 501. Inclusion of rural areas as difficult development areas. 
Sec. 502. Uniform income eligibility for rural projects. 
TITLE VI—EXEMPT FACILITY BONDS 
Sec. 601. Revision and clarification of the treatment of refunding issues. 
TITLE VII—AFFORDABLE HOUSING TAX CREDIT 
Sec. 701. Affordable housing tax credit. 
TITLE VIII—DATA AND TRANSPARENCY 
Sec. 801. Sense of Congress. 
TITLE I—REFORM OF STATE 
ALLOCATION FORMULAS 
SEC. 101. 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.—Sec-
tion 42(h)(3) of the Internal Revenue Code of 1986 is 
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amended by striking subparagraphs (H) and (I) and in-
serting 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 2025.—For cal-
endar year 2025, the per capita amount is 
$4.25. 
‘‘(ii) CALENDAR YEAR 2026.—For cal-
endar year 2026, 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 ad-
justment determined under sec-
tion 1(f)(3) for such calendar 
year, determined by substituting 
‘calendar year 2024’ for ‘cal-
endar year 2016’ in subpara-
graph (A)(ii) thereof. 
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If the amount determined after appli-
cation 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 
2026.—In the case of any calendar year 
after 2026, the per capita amount is the 
dollar amount determined under clause (ii) 
increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment 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. 
Any amount increased under the preceding 
sentence which is not a multiple of 5 cents 
shall be rounded to the next lowest mul-
tiple of 5 cents. 
‘‘(I) MINIMUM AMOUNT.—For purposes of 
subparagraph (C)(ii)(II), the minimum amount 
shall be determined as follows: 
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‘‘(i) CALENDAR YEAR 2025.—For cal-
endar year 2025, the minimum amount is 
$4,876,000. 
‘‘(ii) CALENDAR YEAR 2026.—For cal-
endar year 2026, 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 ad-
justment determined under sec-
tion 1(f)(3) for such calendar 
year, determined by substituting 
‘calendar year 2024’ for ‘cal-
endar year 2016’ in subpara-
graph (A)(ii) thereof. 
If the amount determined after appli-
cation of the preceding sentence is not 
a multiple of 5 cents, such amount 
shall be rounded to the next lowest 
multiple of 5 cents. 
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‘‘(iii) 
CALENDAR
YEARS
AFTER 
2026.—In the case of any calendar year 
after 2026, the minimum amount is the 
dollar amount determined under clause (ii) 
increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment 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. 
Any amount increased under the preceding 
sentence which is not a multiple of $5,000 
shall be rounded to the next lowest mul-
tiple of $5,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
December 31, 2024. 
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TITLE II—REFORMS RELATING 
TO TENANT ELIGIBILITY 
SEC. 201. AVERAGE INCOME TEST APPLICABILITY TO EX-
EMPT FACILITY BONDS. 
(a) IN GENERAL.—Paragraph (1) of section 142(d) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 
(B), or (C)’’, and 
(2) by inserting after subparagraph (B) the fol-
lowing 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. 202. CODIFICATION OF RULES RELATING TO IN-
CREASED TENANT INCOME. 
(a) IN GENERAL.—Clause (i) of section 42(g)(2)(D) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 
inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 
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an increase in the income of the occupants above the in-
come limitation applicable under paragraph (1)— 
‘‘(I) a low-income unit shall con-
tinue 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 occu-
pants, any Federal, State, or local 
government income restriction ap-
plied, 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 ex-
ceed 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) of the Internal Revenue Code of 1986, as amend-
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ed by this Act, is further 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 in-
come in excess of 60 percent of area me-
dian 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, 2024. 
SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 
(a) IN GENERAL.—Subparagraph (D) of section 
42(i)(3) of the Internal Revenue Code of 1986 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 
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‘‘(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 FED-
ERAL PROGRAMS.—In the case of a feder-
ally-assisted building (as defined in sub-
section (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 indi-
vidual shall not be treated as described in 
clause (i) if the individual meets the in-
come 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), 
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‘‘(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 attain-
ing the age of majority— 
‘‘(aa) an emancipated minor 
or in legal guardianship as deter-
mined 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 ad-
ministering a plan under part B 
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or part E of title IV of the Social 
Security Act, or 
‘‘(cc) 
an 
unaccompanied 
youth (within the meaning of sec-
tion 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 in-
dividual is or has been a victim of 
human trafficking if such individual 
was subjected to an act or practice de-
scribed 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. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC-
COUNT AS RENT FOR CERTAIN PURPOSES. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(g)(2) of the Internal Revenue Code of 1986 is amended 
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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 ten-
ant-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 begin-
ning after December 31, 2025. 
SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 
CREDIT-SUPPORTED HOUSING PROTECT VIC-
TIMS OF DOMESTIC ABUSE. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(h)(6) of the Internal Revenue Code of 1986 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 per-
son solely on the basis of criminal ac-
tivity directly relating to domestic vio-
lence, dating violence, sexual assault, 
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or stalking that is engaged in by a 
member of the household of the ten-
ant 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, dat-
ing violence, sexual assault, or stalk-
ing, 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) of the Internal Revenue Code of 1986, 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 Vio-
lence Against Women Act of 1994 shall apply 
with respect to the owner or manager of a 
building.’’. 
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(2) EFFECT OF BIFURCATION.—Paragraph (2) 
of section 42(g) of such Code 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 occu-
pant has engaged in criminal activity di-
rectly relating to domestic violence, dating 
violence, sexual assault, or stalking against 
an affiliated individual or other individual 
on the basis of criminal activity directly re-
lating to domestic violence, dating violence, 
sexual assault, or stalking, and 
‘‘(ii) the lease on such unit is bifur-
cated as provided in the last sentence of 
subsection (h)(6)(B), 
then the remaining occupants of such low-in-
come unit shall not be treated as a new tenant 
for purposes of this section.’’. 
(c) CLARIFICATION OF GENERAL PUBLIC USE RE-
QUIREMENT.—Paragraph (9) of section 42(g) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘or’’ 
at the end of subparagraph (B), by striking the period 
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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 para-
graph (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 amend-
ments made by subsection (c) shall apply to build-
ings placed in service before, on, or after the date 
of the enactment of this Act. 
SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE-
QUIREMENT RELATING TO VETERANS, ETC. 
(a) IN GENERAL.—Paragraph (9) of section 42(g) of 
the Internal Revenue Code of 1986, as amended by section 
205, 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).’’. 
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(b) QUALIFIED RESIDENTIAL RENTAL PROJECTS.— 
Paragraph (2) of section 142(d) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing 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 pref-
erences, 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 serv-
ice 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. 
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TITLE III—RULES RELATING TO 
CREDIT ELIGIBILITY AND DE-
TERMINATION 
SEC. 301. RECONSTRUCTION OR REPLACEMENT PERIOD 
AFTER CASUALTY LOSS. 
(a) NO RECAPTURE FOLLOWING CASUALTY LOSS.— 
Subparagraph (E) of section 42(j)(4) of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘(E) NO RECAPTURE BY REASON OF CAS-
UALTY 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 ex-
tended, but not in excess of 12 months, if 
the applicable housing credit agency deter-
mines the qualified casualty arose by rea-
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son of an event which was not discrete to 
the building and which made a reconstruc-
tion or replacement within 25 months im-
practical. In the event the applicable hous-
ing credit agency determines a period in 
excess of 25 months is necessary for such 
reconstruction or replacement, the compli-
ance period shall be increased by any such 
additional time. 
‘‘(iii) APPLICATION.—The determina-
tion 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 cas-
ualty 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) of the Internal 
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Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(F) QUALIFIED BASIS FOLLOWING CAS-
UALTY 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 re-
placed (but only through the last year of the pe-
riod permitted for reconstruction or replace-
ment under subsection (j)(4)(E))— 
‘‘(i) the qualified basis of such build-
ing 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 recon-
structed or replaced by the expiration of 
the applicable period for such reconstruc-
tion 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 
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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 be-
cause of such casualty.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to casualties occurring after the 
date which is 25 months before the date of the enactment 
of this Act. 
SEC. 302. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 
LIMITATION ON ACQUISITION BASIS. 
(a) IN GENERAL.—Clause (ii) of section 42(d)(2)(B) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘, or the taxpayer elects the application of sub-
paragraph (C)(ii)’’ after ‘‘service’’. 
(b) LIMITATION ON ACQUISITION BASIS.—Subpara-
graph (C) of section 42(d)(2) of the Internal Revenue 
Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subparagraph 
(A), the adjusted basis’’ and inserting ‘‘For pur-
poses of subparagraph (A)— 
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‘‘(i) 
IN
GENERAL.—The 
adjusted 
basis’’, and 
(2) by adding at the end the following new 
clauses: 
‘‘(ii) BUILDINGS IN SERVICE WITHIN 
PREVIOUS
YEARS.—If the period be-
tween the date of acquisition of the build-
ing by the taxpayer and the date the build-
ing 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 ad-
justed basis shall not exceed the sum of— 
‘‘(I) the lowest amount paid for 
acquisition of the building by any per-
son 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 im-
provements made by the person who 
sells the building to the taxpayer 
which are reflected in such seller’s 
basis. 
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‘‘(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 sec-
tion 42(d)(2)(D) of the Internal Revenue Code of 1986 
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 ‘‘sub-
paragraph (B)(ii) or (C)(ii)’’. 
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(d) MODIFICATION OF PLACED IN SERVICE RULE.— 
Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 
Code of 1986 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 acquisi-
tion by the taxpayer, and’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2024. 
SEC. 303. CERTAIN RELOCATION COSTS TAKEN INTO AC-
COUNT AS REHABILITATION EXPENDITURES. 
(a) IN GENERAL.—Paragraph (2) of section 42(e) of 
the Internal Revenue Code of 1986 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 relat-
ing to the relocation of occupants, including— 
‘‘(i) amounts paid to occupants, 
‘‘(ii) amounts paid to third parties for 
services relating to such relocation, and 
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‘‘(iii) amounts paid for temporary 
housing for occupants, 
shall be treated as chargeable to capital account 
and taken into account as rehabilitation ex-
penditures.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures paid or incurred 
after December 31, 2024. 
(c) NO INFERENCE.—Nothing in the amendment 
made by this section shall be construed to create any infer-
ence with respect to the treatment of relocation costs paid 
or incurred before January 1, 2025. 
SEC. 304. REPEAL OF QUALIFIED CENSUS TRACT POPU-
LATION CAP. 
(a) IN GENERAL.—Clause (ii) of section 42(d)(5)(B) 
of the Internal Revenue Code of 1986 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 Rev-
enue Code of 1986 after December 31, 2025. 
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SEC. 305. DETERMINATION OF COMMUNITY REVITALIZA-
TION PLAN TO BE MADE BY HOUSING CREDIT 
AGENCY. 
(a) IN
GENERAL.—Subclause (III) of section 
42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 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) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(E) CRITERIA FOR DETERMINATION RE-
LATING TO CONCERTED COMMUNITY REVITAL-
IZATION PLAN.—For purposes of subparagraph 
(B)(ii)(III), the criteria which shall be estab-
lished by a housing credit agency for deter-
mining whether the development of a project 
contributes to a concerted community develop-
ment plan shall take into account any factors 
the agency deems appropriate, including the ex-
tent to which the proposed plan— 
‘‘(i) is geographically specific, 
‘‘(ii) outlines a clear plan for imple-
mentation and goals for outcomes, 
‘‘(iii) includes a strategy for applying 
for or obtaining commitments of public or 
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private investment (or both) in nonhousing 
infrastructure, amenities, or services, and 
‘‘(iv) demonstrates the need for com-
munity revitalization.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of housing credit dol-
lar amounts made under qualified allocation plans (as de-
fined in section 42(m)(1)(B) of the Internal Revenue Code 
of 1986) adopted after December 31, 2025. 
SEC. 306. PROHIBITION OF LOCAL APPROVAL AND CON-
TRIBUTION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (1) of section 42(m) 
of the Internal Revenue Code of 1986, as amended by sec-
tion 305, 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 sub-
paragraph: 
‘‘(F) LOCAL APPROVAL OR CONTRIBUTION 
NOT TAKEN INTO ACCOUNT.—The selection cri-
teria under a qualified allocation plan shall not 
include consideration of— 
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‘‘(i) any support or opposition with re-
spect to the project from local or elected 
officials, or 
‘‘(ii) any local government contribu-
tion 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 dol-
lar amounts made under qualified allocation plans (as de-
fined in section 42(m)(1)(B) of the Internal Revenue Code 
of 1986) adopted after December 31, 2025. 
SEC. 307. INCREASE IN CREDIT FOR CERTAIN PROJECTS 
DESIGNATED TO SERVE EXTREMELY LOW-IN-
COME HOUSEHOLDS. 
(a) IN GENERAL.—Paragraph (5) of section 42(d) of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subparagraph: 
‘‘(C) INCREASE IN CREDIT FOR PROJECTS 
DESIGNATED
TO
SERVE
EXTREMELY
LOW-IN-
COME HOUSEHOLDS.—In the case of any build-
ing— 
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‘‘(i) 20 percent or more of the resi-
dential units (determined as if the imputed 
income limitation applicable to such units 
were 30 percent of area median gross in-
come) in which are designated by the tax-
payer for occupancy by households the ag-
gregate 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 hous-
ing 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 
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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 alloca-
tions of housing credit dollar amount after the date of en-
actment 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. 308. INCREASE IN CREDIT FOR BOND-FINANCED 
PROJECTS DESIGNATED BY STATE AGENCY. 
(a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 
of the Internal Revenue Code of 1986 is amended by strik-
ing the second sentence. 
(b) TECHNICAL AMENDMENT.—Clause (v) of section 
42(d)(5)(B) of the Internal Revenue Code of 1986, 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. 
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SEC. 309. ELIMINATION OF BASIS REDUCTION FOR LOW-IN-
COME HOUSING PROPERTIES ENERGY EFFI-
CIENT COMMERCIAL BUILDING DEDUCTION. 
(a) ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION.—Subsection (e) of section 179D of the In-
ternal Revenue Code of 1986 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 alloca-
tions 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. 
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SEC. 310. RESTRICTION OF PLANNED FORECLOSURES. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 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 fore-
closure (or instrument in lieu of fore-
closure) 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 arrange-
ment with the taxpayer a purpose of 
which is to terminate such period, 
or’’. 
(b) CONFORMING AMENDMENT.—The second sen-
tence of clause (i) of section 42(h)(6)(E) of the Internal 
Revenue Code of 1986 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, 
2024. 
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SEC. 311. INCREASE OF POPULATION CAP FOR DIFFICULT 
DEVELOPMENT AREAS. 
(a) 
IN
GENERAL.—Subclause 
(II) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘20 percent’’ and inserting ‘‘30 per-
cent’’. 
(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. 312. INCREASED COST OVERSIGHT AND ACCOUNT-
ABILITY. 
(a) IN GENERAL.—Subparagraph (C) of section 
42(m)(1) of the Internal Revenue Code of 1986 is amend-
ed 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 devel-
opment costs of the project.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of credits under sec-
tion 42 of the Internal Revenue Code of 1986 made after 
December 31, 2025. 
SEC. 313. TAX-EXEMPT BOND FINANCING REQUIREMENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(h)(4) of the Internal Revenue Code of 1986 is amended 
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by adding at the end the following new sentence: ‘‘In the 
case of buildings financed by an obligation first taken into 
account under section 146 in calendar years beginning 
after the date of the enactment of the Affordable Housing 
Credit Improvement Act of 2025, the preceding sentence 
shall be applied by substituting ‘25 percent’ for ‘50 per-
cent’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to any building some portion of 
which, or of the land on which the building is located, is 
financed by an obligation which is described in section 
42(h)(4)(A) of the Internal Revenue Code of 1986 and 
which is part of an issue the issue date of which is after 
December 31, 2025. 
TITLE IV—REFORMS RELATING 
TO 
NATIVE 
AMERICAN 
AS-
SISTANCE 
SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO-
CATION PLANS. 
(a) IN GENERAL.—Subparagraph (C) of section 
42(m)(1) of the Internal Revenue Code of 1986, as 
amended by section 312, 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: 
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‘‘(xii) the affordable housing needs of 
individuals in the State who are— 
‘‘(I) enrolled members of a tribe 
with respect to an Indian tribal gov-
ernment (including any agencies or in-
strumentalities of an Indian tribal 
government and any Alaska Native re-
gional or village corporation, as de-
fined 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 As-
sistance 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 sec-
tion 42 of the Internal Revenue Code of 1986 made after 
December 31, 2025. 
SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE-
VELOPMENT AREAS FOR PURPOSES OF CER-
TAIN BUILDINGS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 
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amended by inserting before the period the following: ‘‘, 
and any Indian area’’. 
(b) 
INDIAN
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B) of the Internal Revenue Code of 1986 is 
amended by redesignating subclause (II) as subclause 
(III) and by inserting after subclause (I) the following new 
subclause: 
‘‘(II) INDIAN
AREA.—For pur-
poses of subclause (I), the term ‘In-
dian 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) of the Internal Revenue Code of 1986, as 
amended by subsection (b), is further amended by adding 
at the end the following new subclause: 
‘‘(IV) SPECIAL RULE FOR BUILD-
INGS IN INDIAN AREAS.—In the case 
of an area which is a difficult develop-
ment area solely because it is an In-
dian area, a building shall not be 
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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 hous-
ing 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. 
TITLE V—REFORMS RELATING 
TO RURAL ASSISTANCE 
SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE-
VELOPMENT AREAS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 
amended by section 402, is further amended by inserting 
‘‘, any rural area’’ after ‘‘median gross income’’. 
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(b) 
RURAL
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B) of the Internal Revenue Code of 1986, as 
amended by section 402, is further amended by redesig-
nating subclause (III) as subclause (IV) and by inserting 
after subclause (II) the following new subclause: 
‘‘(III) RURAL
AREA.—For pur-
poses 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 quali-
fied 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. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 
PROJECTS. 
(a) IN GENERAL.—Paragraph (8) of section 42(i) of 
the Internal Revenue Code of 1986 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, 2024. 
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TITLE VI—EXEMPT FACILITY 
BONDS 
SEC. 601. REVISION AND CLARIFICATION OF THE TREAT-
MENT OF REFUNDING ISSUES. 
(a) IN GENERAL.—Subparagraph (A) of section 
146(i)(6) of the Internal Revenue Code of 1986 is amend-
ed 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 re-
payment 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 re-
funding 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.—Sub-
paragraph (B) of section 146(i)(6) of the Internal Rev-
enue Code of 1986 is amended— 
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(1) by striking ‘‘4 years’’ in clause (i) and in-
serting ‘‘10 years’’, 
(2) by striking ‘‘was issued’’ in clause (ii) and 
inserting ‘‘is issued’’, 
(3) by redesignating clauses (i) (as so amend-
ed), (ii) (as so amended), and (iii) as subclauses (I), 
(II), and (III), respectively, and by moving such sub-
clauses 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
REPAY-
MENT.—Subparagraph (A) shall not apply 
to any repayment of a loan which is— 
‘‘(I) made by a repayment of an-
other loan, or 
‘‘(II) financed by an issue treated 
as a refunding issue under subpara-
graph (A).’’. 
(c) CONFORMING AMENDMENT.—The heading of 
paragraph (6) of section 146(i) of the Internal Revenue 
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Code of 1986 is amended by striking ‘‘RESIDENTIAL 
RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE-
SPECTIVE OF OBLIGOR’’ and inserting ‘‘BONDS AS RE-
FUNDING 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 Inter-
nal 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. 
TITLE VII—AFFORDABLE 
HOUSING TAX CREDIT 
SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 
(a) IN GENERAL.—The heading of section 42 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subsection (a) of section 42 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘low- 
income’’ and inserting ‘‘affordable’’. 
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(2) Paragraph (5) of section 38(b) of such Code 
is amended by striking ‘‘low-income’’ and inserting 
‘‘affordable’’. 
(3) The heading of subparagraph (D) of section 
469(i)(3) of such Code is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
(4) The heading of subparagraph (B) of section 
469(i)(6) of such Code is amended by striking 
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 
(5) Paragraph (7) of section 772(a) of such 
Code is amended by striking ‘‘low-income’’ and in-
serting ‘‘affordable’’. 
(6) Paragraph (5) of section 772(d) of such 
Code is amended by striking ‘‘low-income’’ and in-
serting ‘‘affordable’’. 
(c) CLERICAL AMENDMENT.—The item relating to 
section 42 in the table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘Sec. 42. Affordable housing credit.’’. 
TITLE VIII—DATA AND 
TRANSPARENCY 
SEC. 801. SENSE OF CONGRESS. 
(a) TRANSPARENCY.—It is the sense of Congress that 
in addition to expanding and strengthening the affordable 
housing credit through the provisions in the Affordable 
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Housing Credit Improvement Act of 2025, subsequent 
steps should also be taken to share data and identify other 
ways to increase the transparency of the program, and the 
House of Representatives and the Senate should work to-
gether with Federal agencies to identify data sources that 
can be shared. 
(b) DISCRIMINATORY LAND USE POLICIES.—It is the 
Sense of Congress that action should be taken to discour-
age the use of discriminatory land use policies and remove 
barriers to making hosing more affordable to further the 
original intent of the affordable housing credit program. 
The House and Senate should work together to develop 
incentives within the affordable housing credit program to 
encourage states and localities to remove or reform bur-
densome land use and zoning regulations and facilitate the 
adoption or continuation of inclusive land use and zoning 
policies to increase housing supply and affordability. 
Æ 
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