HAG Update: Chairman’s Mark of the One, Big, Beautiful Bill

We are happy to report that on our reading of Ways and Means Chairman Jason Smith’s mark of the Big Beautiful Bill (beginning page 197), it includes the following provisions:

• A 12.5% increase of the 9% LIHTC for 2026 – 2029

• The 50% test is lowered to 25% for commitments made after December 31, 2025, through December 31, 2029

• A basis boost of 30% for Indian areas and rural areas for buildings placed in service after December 31, 2025 – December 31, 2029.

• There is no mention of eliminating the tax-exempt status of bonds.

This is a great start for us, as we were unsure if the LIHTC was going to make it into the bill, given all the issues the Chairman had to address and the limited amount of revenue he had to work with. We are very appreciative of Chairman Smith, Congressman LaHood, and Congresswoman Tenney for their efforts to include the LIHTC in the Chairman’s mark.

This is just the beginning of the process. When the bill is marked up before the full committee, we will see if any changes are proposed. We will also work to expand the investment in affordable housing in the House and Senate.

Please keep up your efforts on cosponsorship of the Affordable Housing Credit Improvement Act in the House, HR 2725, and the Senate, S. 1515, as this support matters to the tax writers.

Congratulations to everyone on this first big step, but keep at it as we are far from done.