WeVote
Log In

Bill

Bill

S 5285

A bill to amend the Internal Revenue Code of 1986 to improve the low-income housing credit.

119th Congress Introduced by Tammy Duckworth and 5 co-sponsors

The bill aims to strengthen the low-income housing tax credit to expand affordable rental housing by improving financing, targeting, and administration.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 5285

Overview

S. 5285 (119th Congress) is a bill introduced in the U.S. Senate to amend the Internal Revenue Code of 1986 to improve the low-income housing tax credit (LIHTC). The bill’s sponsors include Senators Kirsten Gillibrand, Tammy Duckworth, Andy Kim, Chris Van Hollen, Peter Welch, and Amy Klobuchar. It was read twice and referred to the Senate Committee on Finance on August 6, 2026.

Purpose and intent

  • The primary aim is to strengthen and improve the effectiveness of the low-income housing tax credit program, which finances the development and rehabilitation of affordable rental housing for low- and moderate-income households.
  • By refining the LIHTC, the bill seeks to expand the supply of affordable housing, promote more stable and sustainable rental options, and support broader affordability goals.

Key provisions and changes (as described by the bill’s title and general intent)

  • Amendments to the Internal Revenue Code related to LIHTC programs. While the exact textual provisions are not provided here, typical improvements in similar proposals include:
    • Increasing the minimum LIHTC allocation or enhancing allocation efficiency.
    • Adjusting income limits, rent restrictions, or population targeting to better serve extremely low-income households.
    • Improving the quality and predictability of financing, including equity pricing, debt terms, or credit eligibility.
    • Streamlining compliance and reporting requirements to reduce on-the-ground administrative burden for developers and housing agencies.
    • Encouraging funding for rehabilitation of existing affordable units in addition to new construction.
    • Potentially expanding geographic or project-type eligibility (e.g., rural, rural mixed-use, or supportive housing configurations).

Note: The exact clause-level changes are not included in the summary provided. The bill title indicates a focus on “improving the low-income housing credit,” which commonly involves enhancements to eligibility, credit pricing, and project outcomes.

Who would be affected

  • Developers and operators of affordable housing projects that rely on LIHTCs, including nonprofit and for-profit sponsors.
  • State housing finance agencies (HFAs) that administer LIHTC allocations and oversee compliance.
  • Low- to moderate-income renters who gain access to affordable rental units as a result of expanded or improved LIHTC activity.
  • Local governments and communities, particularly those with housing affordability pressures, which could see increased development activity or revitalization through LIHTC-financed projects.

Procedural and timeline aspects

  • Introduced in the Senate and referred to the Committee on Finance for consideration.
  • Action history shows the bill underwent “read twice” and was referred, indicating early-stage legislative process; any further movement would depend on committee markup, potential amendments, and floor consideration.
  • As a tax-related measure, passage would involve reconciliation of any companion House measures or standalone House actions, approvals by both chambers, and signature by the President (if enacted).

Potential impact (high-level)

  • Expanded or improved LIHTC incentives could boost the supply of affordable rental housing, reduce displacement pressures, and support community development.
  • Improved financing terms and streamlined administration may lower development costs and transaction frictions, potentially increasing project viability, especially in high-need areas.
  • Greater targeting to the lowest-income households and preservation of existing affordable stock could be possible outcomes if provisions emphasize deeper affordability and rehabilitation.

If you’d like, I can tailor this summary to include hypothetical or typical LIHTC enhancements (e.g., estimated fiscal impact, potential reform pathways) or wait for the bill’s full text to extract exact provisions and quantify effects.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.