H.R. 3964

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3964 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 3964

To amend the Internal Revenue Code of 1986 to increase the low-income 
housing tax credit for projects designated to serve extremely low-
income households.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 12, 2025

Mr. Gomez (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 increase the low-income 
housing tax credit for projects designated to serve extremely low-
income households.

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 ``Affordable Housing Equity Act of 
2025''.

SEC. 2. INCREASE IN CREDIT FOR CERTAIN PROJECTS DESIGNATED TO SERVE 
EXTREMELY LOW-INCOME HOUSEHOLDS.

(a) In General.--Section 42(d)(5) 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-income households.--In the case of 
any building--
``(i) 20 percent or more of the residential 
units (determined as if the imputed income 
limitation applicable to such units were 30 
percent of area median gross income) in which 
are designated by the taxpayer for occupancy by 
households the aggregate 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 housing 
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 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 allocations of housing credit dollar amount 
after the date of enactment 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.
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