The bill would increase the rehabilitation expenses counted toward the low-income housing tax credit for certain existing buildings that meet energy performance requirements. For qualifying buildings, counted expenses would be 130% of the eligible rehabilitation expenses. For qualifying buildings in high-cost areas, they would be 160%. Buildings would qualify by meeting an energy standard set by the Secretary of Energy or by following a professional plan expected to cut the building’s energy use by at least 50%.
The changes would generally apply to buildings receiving housing credit allocations after December 31, 2025. Special timing rules would apply to certain bond-financed buildings.
Affordable housing projects that renovate existing buildings and meet the energy requirements could count more rehabilitation expenses toward the housing tax credit. The bill does not describe direct benefits for tenants.
The bill does not provide an estimate of its cost. It would increase the rehabilitation expenses counted in calculating the tax credit for qualifying buildings.
No publicly available information.
No publicly available information.