Sponsor
Patrick Ryan
Representative · D-NY
Representative · D-NY
Official title: To amend the Internal Revenue Code of 1986 to provide a credit for working families housing development, and for other purposes.
Introduced January 31, 2025 by Patrick Ryan · Last progress January 31, 2025
The bill expands and targets tax credits plus infrastructure support to produce more working‑family and rural affordable housing, but it increases federal revenue losses, adds administrative complexity, and may raise project costs that could limit benefits or shift burdens to renters and smaller communities.
Low-income renters and working families gain more long-term affordable housing because the bill expands and targets housing tax credits and set‑asides to produce new units.
Owners and developers of qualifying projects face lower financing costs and improved project feasibility through a refundable 15‑year credit and a 30% (130%) basis boost for difficult development areas, encouraging new construction including in tribal, rural, and high‑cost locations.
Local governments and rural/exurban communities get grants and low‑cost loans for water, sewer, roads and electricity (with a clean‑energy priority), lowering upfront infrastructure costs and enabling housing development outside metro cores.
Taxpayers and the federal budget face increased revenue loss from expanded and refundable tax credits plus a $100 million appropriation, which could raise deficits or require offsets elsewhere.
Developers, state agencies, and the IRS will face substantial new compliance and administrative burdens from complex eligibility, allocation, reporting, and conformity rules, raising costs and slowing implementation.
Prevailing‑wage‑type requirements and added compliance costs may raise construction costs, which risks reducing the number of financed units or shifting costs into higher rents for low‑income households.
Based on analysis of 6 sections of legislative text.
Creates a new working families housing tax credit, limits state LIHTC allocations to favor nonprofit‑partnered projects, and authorizes $100M for related rural infrastructure.
Creates a new federal tax credit to encourage production of affordable housing targeted to working families (including teachers, firefighters, police officers, veterans, and similar workers), embeds that credit into the Internal Revenue Code, and changes state allocation rules so most state housing credit resources support projects with meaningful nonprofit ownership and participation. It also adds a $100 million authorization for HUD-related grants and low‑interest loans for infrastructure tied to these projects, and requires HUD consultation on regulatory guidance. The tax and program changes apply to buildings placed in service after December 31, 2025.