Sponsors (47)
Official title: To amend the Internal Revenue Code of 1986 to address the nation's cost-of-living crisis.
Introduced December 18, 2025 by Michael Thompson · Last progress December 18, 2025
The bill directs significant new federal resources and tax incentives to expand affordable housing, family supports, clean energy, education, and health coverage — producing large near‑term benefits for low‑ and moderate‑income households — but it substantially raises federal costs and creates complex new compliance, recapture, and implementation burdens that could exclude some beneficiaries and raise costs for businesses and taxpayers.
Low‑ and moderate‑income renters, homebuyers, and state housing agencies will get substantially more and more flexible affordable‑housing funding and tax credits (higher LIHTC allocations, a conversion tax credit to turn commercial space into housing, new homebuyer and middle‑income credits, DDA/rural boosts, and rehab incentives), making more projects feasible and expanding supply.
Parents and children will get regular, predictable cash support through refundable monthly child credit payments and presumptive eligibility/access measures that speed benefit delivery and protect many advance payments from offsets, improving near‑term household cash flow.
Homeowners, manufacturers, installers, and utilities get expanded clean‑energy and domestic manufacturing incentives (residential renewable credits, advanced manufacturing/investment credits, water reuse credit, EV/e-bike credits, and production incentives), lowering equipment/project costs and supporting domestic clean‑energy jobs and grid upgrades.
Taxpayers and the federal budget face substantially higher long‑term costs because the bill expands and extends many refundable credits, tax expenditures, and program costs across housing, health, families, energy, and education.
Households, state agencies, the IRS, and program administrators will face heavy administrative and compliance burdens from many new programs, reporting, recapture/lookback rules, phased effective dates, and monitoring requirements, raising implementation risk and costs.
Recipients and property owners risk repayment or unexpected tax liability because of complex recapture/repayment, lookback/eligibility rules, and TIN/documentation requirements (excess child advance payments, homebuyer recapture, conversion recapture, missing child TINs), creating financial uncertainty for vulnerable households.
Based on analysis of 14 sections of legislative text.
Creates new housing and recycling credits, restores clean-energy credits, expands monthly refundable child tax credit and caregiver/child-care credits, and adjusts ACA subsidies and LIHTC rules.
Makes broad changes to federal tax law, housing policy, health care subsidies, energy incentives, and family supports to lower costs for households and spur housing and clean-energy investment. It creates new tax credits for middle-income and neighborhood homebuilding, restores and adjusts clean-energy tax incentives, expands Advance Monthly Child Tax Credit payments, adds caregiver and licensed family child care startup credits, lengthens the American Opportunity Tax Credit, and revises Low-Income Housing Tax Credit rules. Also changes the ACA subsidy and cost‑sharing rules to expand eligibility and adjusts premium-contribution formulas, adds a recycling investment credit, and integrates the new middle-income housing credit into the business credit and anti-base-erosion rules. Most tax and program changes take effect for property placed in service or taxable years beginning after December 31, 2025, with specified transition rules for some items through 2026–2028.