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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; SENSE OF CONGRESS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Low Income Housing for Defense Communities Act’’. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that in addition to expanding and strengthening the 
affordable housing credit for active duty military members 
through the provisions in the Low Income Housing for De-
fense Communities Act, further steps should be taken to 
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drive investment into affordable housing projects in the 
United States and boost overall housing supply for work-
ers and families in the United States, such as the Afford-
able Housing Credit Improvement Act of 2023. 
SEC. 2. TAX INCENTIVES FOR RENTAL HOUSING FOR MEM-
BERS OF THE ARMED FORCES. 
(a) MILITARY BASIC HOUSING ALLOWANCE NOT 
TAKEN INTO ACCOUNT IN APPLYING CERTAIN INCOME 
RESTRICTIONS ON RESIDENTIAL RENTAL PROJECTS.— 
(1) LOW-INCOME HOUSING TAX CREDIT.—Sec-
tion 42(i) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(10) INCOME DETERMINED WITHOUT REGARD 
TO
MILITARY
BASIC
HOUSING
ALLOWANCE.—Pay-
ments under section 403 of title 37, United States 
Code, as a basic pay allowance for housing shall not 
be taken into account in determining income for 
purposes of this section.’’. 
(2) TAX-EXEMPT BONDS FOR QUALIFIED RESI-
DENTIAL RENTAL PROJECTS.— 
(A) IN
GENERAL.—Section 142(d)(2)(B) 
of such Code, as amended by subparagraph (B), 
is amended by inserting after clause (i) the fol-
lowing new clause: 
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‘‘(ii) INCOME DETERMINED WITHOUT 
REGARD TO MILITARY BASIS HOUSING AL-
LOWANCE.—Payments under section 403 
of title 37, United States Code, as a basic 
pay allowance for housing shall not be 
taken into account in determining income 
for purposes of clause (i).’’. 
(B) REPEAL
OF
DEADWOOD.—Section 
142(d)(2)(B) of such Code is amended by strik-
ing clauses (ii), (iii), and (iv). 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to determinations 
made after the date of the enactment of this Act. 
(b) INCREASE
IN LOW-INCOME HOUSING CREDIT 
FOR BUILDINGS NEAR CERTAIN LARGE MILITARY IN-
STALLATION.— 
(1) IN GENERAL.—Section 42(d)(5)(B) of the 
Internal Revenue Code of 1986 is amended by add-
ing at the end the following new clause: 
‘‘(vi) 
BUILDINGS
NEAR
CERTAIN 
LARGE MILITARY INSTALLATION.— 
‘‘(I) IN GENERAL.—Any building 
which is located within 15 miles of a 
large military installation shall be 
treated as located in a difficult devel-
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opment area which is designated for 
purposes of this subparagraph. 
‘‘(II) LARGE
MILITARY
INSTAL-
LATION.—For purposes of this clause, 
the term ‘large military installation’ 
means any military installation with a 
total plant replacement value (as de-
termined by the Secretary of the De-
fense) in excess of $2,833,000,000.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to buildings placed in 
service after the date of the enactment of this Act. 
(3) NO REQUIREMENT THAT BUILDINGS BE OC-
CUPIED
SOLELY
BY
MEMBERS
OF
THE
ARMED 
FORCES.—Nothing in the amendment made by this 
subsection shall be applied or interpreted to require 
that buildings described in section 42(d)(5)(B)(vi) of 
the Internal Revenue Code of 1986 (as added by 
this section) be occupied solely by members of the 
Armed Forces. 
Æ 
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