Bill
HR 3540
Overview: HR 3540, the "Low-Income Housing Tax Credit Elimination Act", has been introduced in the House of Representatives.Purpose and Intent: The bill aims to repeal the Low-Inco
Overview: HR 3540, the "Low-Income Housing Tax Credit Elimination Act", has been introduced in the House of Representatives.
Purpose and Intent: The bill aims to repeal the Low-Income Housing Tax Credit (LIHTC), a federal program that provides tax incentives to developers to construct and rehabilitate affordable rental housing units. Proponents argue the LIHTC program has become inefficient and overly complex, failing to effectively increase the supply of low-income housing.
Key Provisions:
- Eliminates the Low-Income Housing Tax Credit program
- Phases out the LIHTC over a 5-year period to allow for an orderly transition
Affected Parties and Impacts: The bill would significantly impact the affordable housing industry, including developers, property owners, and low-income tenants who rely on LIHTC-funded housing. Without the tax credit, the construction and preservation of affordable units may decline, potentially exacerbating housing affordability challenges.
Procedural and Timeline Considerations: HR 3540 has been introduced in the House and is currently under consideration by the relevant committees. If passed, the LIHTC program would be phased out over the next 5 years, with the final credits being allocated in 2030.
Compiled from official sources — confirm details with the bill’s official record.
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