Sponsors (3)
The bill increases flexibility and affordability in housing finance and homeowner tax benefits (faster actions, expanded MCC and refinancing rules, higher home‑improvement limits) while trading off reduced public notice and participation, added administrative burdens and complexity for issuers and governments, and modest federal revenue loss.
State and local housing authorities can reallocate unused private activity bond carryforwards within their State to finance housing where needed, improving flexibility to fund affordable housing and support low-income households.
Homeowners with qualifying mortgages (MCCs) get stronger, more predictable tax benefits: credit calculations tied to certified indebtedness, capped certificate credit rates (1%–5%), and extended claim eligibility (through year 4 for qualifying certificates), increasing affordability and cash flow.
Homeowners refinancing after enactment can preserve tax-exempt bond benefits (not treated as acquisition/replacement), reducing refinancing friction and preserving lower-cost financing options.
Ordinary citizens, stakeholders, and taxpayers have 60 fewer days to learn about and respond to many proposed state/local actions (30‑day vs. 90‑day notice), reducing time for public comment, planning, and participation.
Shifting primary MCC reporting obligations from mortgage lenders to MCC issuers and removing a special aggregate-penalty cross-reference may increase compliance costs for issuers and expose filers to different or higher penalties.
New federal reporting requirements and mandatory electronic filings for state private activity bond data impose added administrative burdens on state and local issuing authorities and create additional Treasury/IRS processing costs (ultimately borne by taxpayers).
Based on analysis of 20 sections of legislative text.
Revises mortgage credit certificate rules and reporting, raises home-improvement loan limit to $75K, changes bond carryforward rules and recapture testing, and shortens a public-notice period.
Introduced February 9, 2026 by Rudy Yakym · Last progress February 9, 2026
Reduces a public-notice waiting period from 90 to 30 days and changes many tax and housing finance rules tied to mortgage credit certificates (MCCs), private activity bond volume caps, carryforwards, and mortgage revenue bond recapture. It raises the qualified home-improvement loan limit from $5,000 to $75,000 (with future inflation adjustments), tightens MCC credit-rate limits (1%–5%) while letting issuing authorities pick a rate each year, shortens recapture testing windows, creates new state-level bond reporting and mandatory electronic filing, and adjusts who must file certain IRS reports. The bill mainly affects state and local issuing authorities, lenders, homeowners who use MCCs or home-improvement financing, and Treasury reporting. Many changes take effect after December 31, 2025 or for calendar years following enactment; a few provisions apply on enactment or immediately to refinancings or newly issued MCCs after specified dates.