Sponsors (2)
The bill expands and clarifies mortgage- and bond-related tax benefits and reporting to increase housing finance flexibility and homeowner relief, at the cost of higher federal expenditures, greater administrative and compliance burdens, reduced public notice time, and some weakened verification protections.
Homeowners eligible for mortgage credit certificates (MCCs) will get longer and more predictable tax credit benefits because the bill extends MCC availability and clarifies credit timing and rules.
Homeowners who meet residence and income tests can refinance without losing mortgage revenue bond benefits, making lower-rate refinancing more accessible.
Issuers and federal overseers get clearer, more timely data because Treasury must report detailed state-level private activity bond data annually and issuer statements must be filed electronically, improving oversight and planning.
Federal taxpayers face higher costs because extending MCCs, expanding refinancing eligibility, and raising the home-improvement loan limit reduce federal revenue or increase tax-exempt bond-related expenditures.
Members of the public and stakeholders will have less time to review and respond to required notices because the bill shortens waiting periods, reducing opportunities for public input and challenge.
State and local issuing authorities and smaller issuers will face new or higher administrative and compliance costs—electronic filing requirements, more detailed reporting, complex transfer/redesignation rules, and tighter correction windows raise workload and IT expense.
Based on analysis of 20 sections of legislative text.
Introduced April 29, 2025 by Catherine Marie Cortez Masto · Last progress April 29, 2025
Makes a set of changes to federal tax and housing bond rules that affect mortgage credit certificates (MCCs), private activity bond volume caps and carryforwards, mortgage revenue bond refinancing and recapture rules, and certain administrative requirements. It shortens a federal public notice period, removes a lender reporting obligation for MCCs, requires new state-level bond reporting to Congress and electronic issuer filing, increases the cap on qualified home improvement loans, and changes how carryforwards, transfers, and redesignations of bond authority work. The bill phases many changes in over time: some take effect on enactment, several apply to calendar years or elections after December 31, 2025, and certain MCC rule changes apply beginning in the second calendar year after enactment. The changes primarily affect state and local issuing authorities, homeowners using MCCs or mortgage revenue bonds, lenders and bond issuers, and Treasury/Congressional oversight of private activity bonds.