Sponsors (3)
The bill broadens and clarifies mortgage‑ and private activity bond‑related tax benefits and reporting rules to speed financing and increase flexibility for housing and issuers, but it does so at the cost of larger tax expenditures, reduced public notice and local flexibility, and added administrative burdens and potential compliance/penalty risks.
Homeowners can finance larger home improvements (limit raised to $75,000 with future inflation adjustments), making costly repairs or upgrades more affordable.
Refinancing after enactment is treated in a way that preserves tax‑exempt bond financing benefits for more transactions, reducing uncertainty for borrowers and issuers.
States can redesignate and move unused private activity bond carryforwards within a State to support housing projects, increasing flexibility to target housing and assist low‑income households.
Multiple provisions expand or ease qualification for mortgage‑ and bond‑related tax benefits (refinancing rule, larger improvement limit, extended MCC claim periods, other MCC changes), which together are likely to reduce federal revenue and increase tax complexity.
Cutting the public notice period from 90 to 30 days gives ordinary citizens, small businesses, and other stakeholders far less time to learn about and respond to proposed actions, reducing public participation and planning time.
Shifting MCC reporting obligations from lenders to MCC issuers and removing a special aggregate penalty reference could shift compliance costs to different entities and expose filers to different or potentially higher penalties.
Based on analysis of 20 sections of legislative text.
Revises tax rules for mortgage credit certificates and private-activity bonds, raises home-improvement loan limits, shortens bond recapture windows, and adds State-level bond reporting and electronic filing requirements.
Official title: To amend the Internal Revenue Code of 1986 to expand housing investment with mortgage revenue bonds, and for other purposes.
Introduced February 9, 2026 by Rudy Yakym · Last progress February 9, 2026
Makes targeted changes to federal tax rules for mortgage credit certificates, mortgage revenue bonds, private-activity bond reporting, and related carryforward and election rules; raises the loan limit for qualified home improvement loans and shortens certain testing/recapture windows. It also adds new federal reporting and electronic-filing requirements for State private activity bond ceilings and carryforwards, changes which entities must report for mortgage credit certificates, and adjusts timing and election flexibility for issuing authorities. Most provisions take effect at or after the end of 2025; a few take effect on enactment or for refinancing/issuance dates soon after enactment.