Title: Restoring Tax Credits for Affordable Housing Act
Policy area: Taxation

Summary:
Restoring Tax Credits for Affordable Housing Act
This bill amends the Internal Revenue Code, with respect to the low-income housing credit, to increase: (1) the state housing credit ceiling used to allocate credits to states, and (2) the credit percentage.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6542 Introduced in House (IH)]

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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 Representatives 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 Ceiling.--
            (1) In general.--Section 42(h)(3)(C)(ii) of the Internal 
        Revenue Code of 1986 is amended--
                    (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 preceding 
                        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 subclause 
                        (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 subparagraph (I).
    (b) Increase in Credit Percentage.--
            (1) Modification of discount rate.--Section 42(b)(1)(C)(ii) 
        of such Code is amended by striking ``72 percent of'' and 
        inserting ``the sum of 1.5 percentage points plus''.
            (2) Modification of method of discounting.--Section 
        42(b)(1)(C)(i) of such Code is amended to read as follows:
                            ``(i) assuming the 10-year period referred 
                        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 applying 
                subparagraphs (A), (B), and (C), the applicable 
                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.
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