The House Ways and Means Committee released the tax portion of the reconciliation legislation for the markup hearing on Tuesday, May 13. The marathon hearing featured conversations around opportunity zones, tariffs, the increase in SALT deductions, Medicaid cuts, and an increase to the deficit.
The AHCIA provisions included in the bill are:
- Increasing the Housing Credit state allocation by 12.5% for 2026 through 2029;
- Lowering the 50% private activity bond threshold test to 25% for obligations made after December 31st, 2025 and before January 1, 20230; and
- Providing a 30% basis boost for buildings in rural and Native American communities placed in service after December 31, 2025 and before January 1, 2030
Why It Matters: If enacted, these proposals would amount to the largest investment in the Housing Credit in decades including:
- Financing nearly 1.6 million additional affordable homes,
- Support for over 2.4 million jobs,
- Raising almost $94 billion in additional tax revenue, and
- Garnering over $271 billion in wages and business income.
The legislation also includes a number of other relevant proposals such as a new round of Opportunity Zones with boosts for rural investment and a repeal of the clean energy tax credits. Notably, there is no change to the top corporate rate included and there is no reduction or changes to private activity bonds.
