When the Senate returns from their holiday recess next week, they will take up the House reconciliation bill, which passed by a narrow vote of 215-214.

  • Senator Mike Crapo (R-ID), Chairman of the Finance Committee, is having informal chats with his committee members on whether to hold public markups to advance their own version of the bill.
  • Some Senate fiscal hawks are pushing for deeper cuts, while moderates on both sides express concern over reductions to Medicaid and clean energy tax credits, and argue that the SALT cap was increased too much.
    • Last month, Senators Lisa Murkowski (R-AK), John Curtis (R-UT), Thom Tillis (R-NC), and Jerry Moran (R-KS), wrote a letter to Senate Majority Leader John Thune (R-SD), expressing support for energy tax credits and cautioning against their full-scale repeal.

Dig Deeper: The bill includes the following housing-related provisions:

  • AHCIA:
    • Restores the 12.5 percent Housing Credit allocation increase for 2026 – 2029;
    • Lowers the 50 percent private-activity bond threshold test to 25 percent for obligations made after Dec. 31, 2025, and before Jan. 1, 2030; and
    • Provides a 30 percent basis boost for buildings in rural and Native American communities placed in service after Dec. 31, 2025 and before Jan. 1, 2030.
  • Opportunity Zones (OZ):
    The bill enhances and renews OZ incentives, with new requirements that a minimum share of new OZ designations be in rural areas.
  • Environmental Programs:
    There are significant cuts to programs our members use, including:
  • Other Notable Pieces:
    • Reinstatement of 100 percent bonus depreciation; and
    • Extension of the Base Erosion and Anti-Abuse Tax (BEAT) minimum tax amount.

What’s Next: The Senate aims to send the bill to President Trump before the July 4th holiday. Please continue your advocacy to ensure our provisions remain in the Senate version of the bill.