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HB 4045

Relating to the allocation of low income housing tax credits.

89th Legislature (2025) Introduced by Cecil Bell and 1 co-sponsor

HB 4045 restructures Texas's distribution of federal low-income housing tax credits to developers, potentially shifting which communities receive affordable housing funding.

Postponed
#housing--general(i0405) #taxation--property-exemptions(i0793)
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Bill Summary · HB 4045

Legislative bill overview

HB 4045 modifies how Texas allocates Low Income Housing Tax Credits (LIHTC), a federal program that incentivizes private developers to build affordable housing by allowing them to reduce tax liability. The bill is currently in early legislative stages, having been postponed after second reading and referred to the General State Calendar, with specific amendments or allocations not yet publicly detailed at this stage.

Why is this important

Texas faces significant affordable housing shortages, particularly in high-growth urban areas. The LIHTC program is one of the primary mechanisms for funding new affordable rental housing construction, so changes to allocation methods directly affect which communities receive new affordable units and how efficiently the state distributes these limited federal resources.

Potential points of contention

  • Geographic fairness: Disputes over whether credits should prioritize high-cost urban areas with greater demand versus rural or less competitive regions
  • Developer preference and competition: Questions about whether allocation changes favor certain developers, nonprofit organizations, or project types
  • Funding efficiency: Concerns about whether reallocation affects the state's ability to leverage matching private investment or meet federal requirements

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

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