I 
115TH CONGRESS 
2D SESSION 
H. R. 6542 
To amend the Internal Revenue Code of 1986 to provide an increase in 
the low-income housing credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2018 
Mr. CLYBURN (for himself and Ms. DELBENE) 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 
an increase in 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. 
This Act may be cited as the ‘‘Restoring Tax Credits 
for Affordable Housing Act’’. 
SEC. 2. INCREASE IN LOW-INCOME HOUSING CREDIT. 
(a) INCREASE OF STATE HOUSING CREDIT CEIL-
ING.— 
(1) IN
GENERAL.—Section 42(h)(3)(C)(ii) of 
the Internal Revenue Code of 1986 is amended— 
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(A) by striking ‘‘$1.75’’ in subclause (I) 
and inserting ‘‘$2.90’’, and 
(B) by striking ‘‘$2,000,000’’ in subclause 
(II) and inserting ‘‘$3,365,000’’. 
(2) 
INFLATION
ADJUSTMENT.—Section 
42(h)(3)(H) of such Code is amended— 
(A) in clause (i)— 
(i) by striking ‘‘2002, the $2,000,000 
and $1.75 amounts’’ in the matter pre-
ceding subclause (I) and inserting ‘‘2019, 
the $3,365,000 and $2.90 amounts’’, and 
(ii) by striking ‘‘2001’’ in subclause 
(II) and inserting ‘‘2018’’, and 
(B) in clause (ii)— 
(i) by striking ‘‘$2,000,000’’ in sub-
clause (I) and inserting ‘‘$3,365,000’’, and 
(ii) by striking ‘‘$1.75’’ in subclause 
(II) and inserting ‘‘$2.90’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
42(h)(3) of such Code is amended by striking sub-
paragraph (I). 
(b) INCREASE IN CREDIT PERCENTAGE.— 
(1) MODIFICATION OF DISCOUNT RATE.—Sec-
tion 42(b)(1)(C)(ii) of such Code is amended by 
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striking ‘‘72 percent of’’ and inserting ‘‘the sum of 
1.5 percentage points plus’’. 
(2) MODIFICATION
OF
METHOD
OF
DIS-
COUNTING.—Section 42(b)(1)(C)(i) of such Code is 
amended to read as follows: 
‘‘(i) assuming the 10-year period re-
ferred to in subparagraph (B) commences 
no less than 2 years after a housing credit 
allocation is made under subsection (h),’’. 
(3) ONE-TIME ADJUSTMENT.—Section 42(b)(1) 
of such Code is amended by adding at the end the 
following new subparagraph: 
‘‘(D) ONE-TIME ADJUSTMENT.—After ap-
plying subparagraphs (A), (B), and (C), the ap-
plicable percentage shall be increased by 16 
percent.’’. 
(c) EFFECTIVE DATES.— 
(1) INCREASE
OF
STATE
HOUSING
CREDIT 
CEILING.—The amendments made by subsection (a) 
shall apply to calendar years after 2018. 
(2) INCREASE IN CREDIT PERCENTAGE.—The 
amendments made by subsection (b) shall apply to 
buildings with respect to which housing credit dollar 
amounts are allocated after December 31, 2018. 
Æ 
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