Affordable Housing Equity Act of 2025

Increases the federal housing tax credit available to certain rental projects that set aside at least 20% of units for extremely low-income households when a state housing credit agency determines the extra credit is needed to make the project financially viable. The change targets projects that need deeper subsidy to be built and directs state agencies to certify that the additional credit is necessary. The provision applies to buildings receiving credit allocations or obligations issued after the effective date specified in the law.