Energy Efficiency for Affordable Housing Act

This bill boosts the low-income housing credit for fixing up older affordable housing if the building becomes much more energy efficient. If a rehabbed building meets new energy standards or follows a certified plan to cut its energy use by 50% or more, more of the rehab costs count toward the credit (130% instead of the usual amount) . In high-cost areas, that boost is even larger (160%) . The energy plan must be prepared and certified by a licensed architect or engineer, and the government will set the advanced building standard within 180 days of the law taking effect .

Most changes start for projects that get credit allocations after December 31, 2025. For projects that use qualifying bonds, the new rules apply if the bonds are issued after that date .

• Who is affected: Owners and developers of existing affordable housing buildings doing major rehab; residents could benefit from lower energy bills and better building performance .
• What changes: Rehab projects that hit strong energy targets can count 130% of their qualified rehab costs for the credit; in high-cost areas, 160% applies. A certified plan can qualify if it cuts site energy use by 50% or more .
• When it starts: Applies to credit allocations after December 31, 2025; for bond-financed projects, to bonds issued after that date .