H.R. 9267

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9267 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9267

To amend the Internal Revenue Code of 1986 to modify the low-income 
housing tax credit to incentivize affordable and transit-oriented 
development and development in certain difficult development areas, and 
for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 11, 2026

Mr. Case (for himself, Mr. Moylan, and Ms. Tokuda) 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 modify the low-income 
housing tax credit to incentivize affordable and transit-oriented 
development and development in certain difficult development areas, 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 ``Transit Oriented Development Act of 
2026''.

SEC. 2. LOW-INCOME HOUSING TAX CREDIT FOR TRANSIT-ORIENTED DEVELOPMENT 
AREAS.

(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 buildings in transit-
oriented development areas.--
``(i) In general.--In the case of any 
building located in a transit-oriented 
development area which is designated for 
purposes of this subparagraph--
``(I) in the case of a new 
building, the eligible basis of such 
building shall be 150 percent of such 
basis determined without regard to this 
subparagraph, and
``(II) in the case of an existing 
building, the rehabilitation 
expenditures taken into account under 
subsection (e) shall be 150 percent of 
such expenditures determined without 
regard to this subparagraph.
``(ii) Increased eligible basis for 
noncontiguous states and territories.--In the 
case of a transit-oriented development area in 
Hawaii, Alaska, or any territory of the United 
States, subclauses (I) and (II) of clause (i) 
shall each be applied by substituting `155 
percent' for `150 percent'.
``(iii) Transit-oriented development 
area.--For purposes of this subparagraph, the 
term `transit-oriented development area' means 
an area designated by the Secretary of Housing 
and Urban Development and State housing credit 
agency as located in an area within \1/2\ of a 
mile from a rail, bus, harbor, or waterway 
station and as zoned for high-density.
``(iv) Limit on areas designated.--The 
portions of metropolitan statistical areas 
which may be designated for purposes of this 
subparagraph shall not exceed an aggregate area 
having 20 percent of the population of such 
metropolitan statistical areas. A comparable 
rule shall apply to nonmetropolitan statistical 
areas.
``(v) Coordination with high cost areas.--
If the eligible basis of a new building, or the 
rehabilitation expenditures with respect to an 
existing building, are determined pursuant to 
subparagraph (B), such building shall not be 
treated as located in a transit-oriented 
development area for purposes of this 
subparagraph.''.
(b) Effective Date.--The amendment made by this section shall apply 
to buildings placed in service after the date of the enactment of this 
Act.

SEC. 3. HUD STUDY REGARDING ADJUSTMENT OF TAX CREDIT ALLOCATIONS TO 
REFLECT GEOGRAPHIC COST-OF-LIVING DIFFERENCES.

The Secretary of Housing and Urban Development shall conduct a 
study to identify cost-of-living differences throughout the United 
States based on geographic location and proximity and accessibility to 
transit. Not later than the expiration of the 1-year period beginning 
on the date of the enactment of this Act, the Secretary shall submit a 
report to the Congress setting forth the results and conclusions of the 
study and recommending formulas for the adjustment of annual 
allocations to the States of low-income housing tax credits under 
section 42 of the Internal Revenue Code of 1986 to reflect such cost-
of-living differences.
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