[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6390 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6390
To rescind certain immigration enforcement funds and amend the Internal
Revenue Code to provide for new credits related to expanding access to
housing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 3, 2025
Mr. Gomez (for himself, Ms. Norton, Mr. Carter of Louisiana, Ms.
Salinas, Mr. Garcia of California, Mr. Sherman, Mr. Thompson of
California, Mr. Garcia of Illinois, Mr. Goldman of New York, Ms. Garcia
of Texas, Mr. Cisneros, Ms. Ansari, Mr. Ruiz, Ms. Rivas, Mr. Thanedar,
Ms. Barragan, Mr. Davis of Illinois, Ms. Sanchez, Mr. Carson, Mr.
Vargas, Mr. Carbajal, Ms. Chu, Ms. Matsui, Mr. Lieu, Ms. Wasserman
Schultz, Mrs. Beatty, Mr. Jackson of Illinois, Ms. Jacobs, Mr. Deluzio,
Mr. Swalwell, Mr. Evans of Pennsylvania, Mr. Liccardo, Ms. Simon, Ms.
Lee of Pennsylvania, Mr. McGovern, Mrs. Ramirez, Ms. Dexter, Mr.
Mullin, Ms. Leger Fernandez, Mrs. McIver, Mr. Menendez, Mr.
Krishnamoorthi, Mr. Cohen, Ms. Titus, Ms. Randall, Mr. Veasey, Mr.
Peters, Mr. Johnson of Georgia, Mr. Pocan, Mr. Nadler, Ms. Kelly of
Illinois, Mr. Boyle of Pennsylvania, Ms. Dean of Pennsylvania, Ms.
Kamlager-Dove, Mr. Frost, Mrs. Watson Coleman, Ms. Brownley, Mr.
Latimer, Mr. Soto, Ms. Balint, Mrs. McClain Delaney, and Ms.
Schakowsky) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on Armed
Services, Homeland Security, and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To rescind certain immigration enforcement funds and amend the Internal
Revenue Code to provide for new credits related to expanding access to
housing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Make Housing Affordable and Defend
Democracy Act''.
SEC. 2. RESCISSIONS OF CERTAIN IMMIGRATION ENFORCEMENT FUNDS.
(a) Findings.--Congress finds that the amount of
$175,660,630,000.00 shall be rescinded.
(b) Department of Defense.--There is permanently rescinded
$1,000,000,000.00, to be derived from the unobligated balances of
amounts made available by section 20011 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), of the for improving Department of Defense border
support and counter- drug missions.
(c) Infrastructure and Wall System.--There is permanently rescinded
$46,550,000,000.00, to be derived from the unobligated balances of
amounts made available by section 90001 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for border infrastructure and wall system.
(d) U.S. Customs and Border Protection Personnel.--There is
permanently rescinded $4,100,000,000.00, to be derived from the
unobligated balances of amounts made available by section 90002(a)(1)
of the Act titled ``An Act to provide for reconciliation pursuant to
title II of H. Con. Res. 14'' (Public Law 119-21), for U.S. Customs and
Border Protection personnel.
(e) Retention, Hiring, and Performance Bonuses.--There is
permanently rescinded $2,052,630,000.00, to be derived from the
unobligated balances of amounts made available by section 90002(a)(2)
of the Act titled ``An Act to provide for reconciliation pursuant to
title II of H. Con. Res. 14'' (Public Law 119-21), for retention,
hiring, and performance bonuses of U.S. Customs and Border Protection
personnel.
(f) U.S. Customs and Border Protection Vehicles.--There is
permanently rescinded $855,000,000.00, to be derived from the
unobligated balances of amounts made available by section 90002(a)(3)
of the Act titled ``An Act to provide for reconciliation pursuant to
title II of H. Con. Res. 14'' (Public Law 119-21), for U.S. Customs and
Border Protection vehicles.
(g) U.S. Customs and Border Protection Facilities.--There is
permanently rescinded $5,000,000,000.00, to be derived from the
unobligated balances of amounts made available by section 90002(a)(4)
of the Act titled ``An Act to provide for reconciliation pursuant to
title II of H. Con. Res. 14'' (Public Law 119-21), for U.S. Customs and
Border Protection facilities.
(h) Detention Capacity.--There is permanently rescinded
$45,000,000,000.00, to be derived from the unobligated balances of
amounts made available by section 90003 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for detention capacity.
(i) Border Security, Technology, And Screening.--There is
permanently rescinded $6,168,000,000.00, to be derived from the
unobligated balances of amounts made available by section 90004 of the
Act titled ``An Act to provide for reconciliation pursuant to title II
of H. Con. Res. 14'' (Public Law 119-21), for border security,
technology, and screening.
(j) State and Local Assistance.--There is permanently rescinded
$10,000,000,000.00, to be derived from the unobligated balances of
amounts made available by section 90005(b) of the Act titled ``An Act
to provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for the State Border Security Reinforcement Fund.
(k) Department of Homeland Security.--There is permanently
rescinded $10,000,000,000.00, to be derived from the unobligated
balances of amounts made available by section 90007 of the Act titled
``An Act to provide for reconciliation pursuant to title II of H. Con.
Res. 14'' (Public Law 119-21), for Department of Homeland Security
appropriations for border support.
(l) Immigration and Law Enforcement Activities.--There is
permanently rescinded $2,055,000,000.00, to be derived from the
unobligated balances of amounts made available by section 100051 of the
Act titled ``An Act to provide for reconciliation pursuant to title II
of H. Con. Res. 14'' (Public Law 119-21), for immigration and law
enforcement activities.
(m) Hiring and Training.--There is permanently rescinded
$29,850,000,000.00, to be derived from the unobligated balances of
amounts made available by section 100052 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for U.S. Immigration and Customs Enforcement
hiring and training.
(n) Federal Law Enforcement Training Centers.--There is permanently
rescinded $750,000,000.00, to be derived from the unobligated balances
of amounts made available by section 100053 of the Act titled ``An Act
to provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for Federal law enforcement training centers.
(o) Department of Justice.--There is permanently rescinded
$3,330,000,000.00, to be derived from the unobligated balances of
amounts made available by section 100054 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for the Department of Justice.
(p) Reimbursement Fund.--There is permanently rescinded
$3,500,000,000.00, to be derived from the unobligated balances of
amounts made available by section 100055 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for the Bridging immigration-related deficits
experienced nationwide reimbursement fund.
(q) Immigration Fees.--Sections 100001 through section 100018 of
the Act titled ``An Act to provide for reconciliation pursuant to title
II of H. Con. Res. 14'' (Public Law 119-21), are hereby repealed.
(r) Operation Stonegarden Grant Program.--There is permanently
rescinded $450,000,000.00, to be derived from the unobligated balances
of amounts made available by section 90005 of the Act titled ``An Act
to provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for the Operation Stonegarden Grant Program.
(s) Bureau of Prisons.--There is permanently rescinded
$5,000,000,000.00, to be derived from the unobligated balances of
amounts made available by section 100056 of the Act titled ``An Act to
provide for reconciliation pursuant to title II of H. Con. Res. 14''
(Public Law 119-21), for the Bureau of Prisons.
SEC. 3. FIRST-TIME HOMEBUYER CREDIT.
(a) In General.--Section 36 of the Internal Revenue Code of 1986 is
amended to read as follows:
``SEC. 36. FIRST-TIME HOMEBUYER CREDIT.
``(a) In General.--In the case of an individual who is a first-time
homebuyer of a principal residence in the United States during a
taxable year, there shall be allowed as a credit against the tax
imposed by this subtitle for such taxable year an amount equal to so
much of the amount of the qualified home purchase expenses paid by such
taxpayer to purchase such principal residence as does not exceed
$25,000.
``(b) Limitation.--
``(1) In general.--The amount allowable as a credit under
subsection (a) (determined without regard to this paragraph)
for the taxable year shall be reduced (but not below zero) by
the amount which bears the same ratio to the amount which is so
allowable as--
``(A) the excess (if any) of--
``(i) the taxpayer's modified adjusted
gross income for the preceding taxable year,
over
``(ii) the applicable threshold amount,
bears to--
``(B) $100,000.
``(2) Threshold amount.--For purposes of this subsection,
the term `threshold amount' means--
``(A) $300,000 in the case of a joint return or
surviving spouse,
``(B) $225,000 in the case of a head of household,
or
``(C) $150,000 in the case of any other individual.
``(3) Modified adjusted gross income.--For purposes of
paragraph (1), the term `modified adjusted gross income' means
the adjusted gross income of the taxpayer for the taxable year
increased by any amount excluded from gross income under
section 911, 931, or 933.
``(c) Increase in Credit for First-generation Homebuyer.--
``(1) In general.--In the case of a first-generation
homebuyer, subsection (a) shall be applied by substituting
`$50,000' for `$25,000'.
``(2) First-generation homebuyer.--For purposes of this
subsection, the term `first-generation homebuyer' means an
individual who certifies that, as of the last day of the
taxable year with respect to which the credit is allowed
(determined without regard to any ownership interest with
respect to which such credit is allowed), such individual (and
such individual's spouse, in the case of a joint return) is an
individual described in paragraph (3).
``(3) Individual described.--An individual is described in
this paragraph if--
``(A) such individual aged out of the foster care
system,
``(B) such individual was emancipated from their
parent, or
``(C) no parent of such individual had a majority interest
in a residential property at any time during the lifetime of
such individual.
``(d) Increase in Credit for High Cost Areas.--In the case of the
purchase of a principal residence located in a high cost area (as such
term is used in the Federal National Mortgage Association Charter Act),
the amount in effect under subsection (a) (after the application of
subsection (j)) shall be increased by an amount equal to the product
of--
``(1) 3.5 percent, multiplied by
``(2) the excess of--
``(A) the conforming loan limit value for
properties in high cost areas established under
302(b)(2) of the Federal National Mortgage Association
Charter Act, minus
``(B) the conforming loan limit value for
properties established under section 305(a)(2) of the
Federal Home Loan Mortgage Corporation Act, as most
recently updated by the Federal Housing Finance Agency.
``(e) Exceptions.--No credit under subsection (a) shall be allowed
to any taxpayer for any taxable year with respect to the purchase of a
residence if--
``(1) the taxpayer is a nonresident alien,
``(2) the taxpayer disposes of such residence (or such
residence ceases to be the principal residence of the taxpayer
(and, if married, the taxpayer's spouse)) before the close of
such taxable year,
``(3) a deduction under section 151 with respect to such
taxpayer is allowable to another taxpayer for such taxable
year, or
``(4) the taxpayer fails to attach to the return of tax for
such taxable year a properly executed copy of the settlement
statement used to complete such purchase.
``(f) Election for Advanced Payment.--
``(1) In general.--At the election of the first-time
homebuyer, the Secretary shall transfer to a qualifying escrow
account an amount equal to the amount that is allowable to such
first-time homebuyer under subsection (a) in the present
taxable year.
``(2) Treatment of transfer.--The amount of the credit
allowed under subsection (a) to any taxpayer for any taxable
year shall be reduced (but not below zero) by the aggregate
amount of payments made under this subsection at the election
of such taxpayer during such taxable year. Any failure to so
reduce the credit shall be treated as arising out of a
mathematical or clerical error and assessed according to
section 6213(b)(1).
``(3) Qualifying escrow account.--For purposes of this
subsection, the term `qualifying escrow account' means an
escrow account established for the purchase of a principal
residence by a qualified first-time homebuyer that meets the
following requirements:
``(A) Amounts in such account may only be used for
a down payment or closing costs on a purchase with
respect to which a credit is allowed under subsection
(a).
``(B) Such account is administered by a bank (as
defined in section 408(n)).
``(C) The administrator of the account shall
transfer to the Secretary any amount in such account
not used under subparagraph (A) on the earlier of--
``(i) the date that is 180 days after the
date on which such amount was transferred to
such account under paragraph (1), or
``(ii) as soon as practicable upon request
of the qualified first-time homebuyer.
``(g) Recapture of Credit.--
``(1) In general.--If, during any taxable year, there is a
recapture event with respect to any property with respect to
which a credit was allowed under subsection (a), then the tax
of the taxpayer to whom such credit was allowed under this
chapter for such taxable year shall be increased by an amount
equal to the amount of the credit that was allowed with respect
to such property.
``(2) Recapture event.--For purposes of this section, the
term `recapture event' means, during the 5-year period
beginning on the date of the purchase with respect to which a
credit was allowed under subsection (a)--
``(A) the sale, lease to a third party, or
disposition of any part of the property with respect to
which such credit was allowed, or
``(B) such property ceases to be the principal
residence of the taxpayer (or, in the case of a joint
return, of the taxpayer's spouse).
``(3) Exceptions.--Paragraph (1) shall not apply to any of
the following:
``(A) Purchase of new primary residence.--
``(i) In general.--A sale of a property
with respect to which a credit was allowed
under subsection (a) which is incident to the
purchase by a taxpayer of a new primary
residence if the proceeds of such sale are used
to carry out the purchase of such new primary
residence.
``(ii) Treatment of new primary
residence.--In the case of a purchase of a
primary residence described in clause (i), for
purposes of paragraph (1), such primary
residence shall be treated as a property with
respect to which a credit was allowed under
subsection (a), except that the period
described in paragraph (2) shall begin on the
date on which the original purchase with
respect to which the credit was allowed under
subsection (a) occurred.
``(B) Death.--Any taxable year ending after the
death of the taxpayer (or, in the case of a joint
return, of the spouse of the taxpayer).
``(C) Divorce.--A transfer of a residence to which
section 1041(a) applies.
``(D) Government orders.--A recapture event
relating to a principal residence occurring in
connection with Government orders received by such
individual, or such individual's spouse, for qualified
official extended duty service.
``(E) Qualified official extended duty service.--
For purposes of this paragraph, the term `qualified
official extended duty service' means service on
qualified official extended duty as--
``(i) a member of the uniformed services,
``(ii) a member of the Foreign Service of
the United States, or
``(iii) an employee of the intelligence
community.
``(h) Definitions.--For purposes of this section--
``(1) First-time homebuyer.--The term `first-time
homebuyer' means any individual if such individual (and if
married, such individual's spouse)--
``(A) had no present ownership interest in a
principal residence during the 10-year period ending on
the date of the purchase of the principal residence to
which this section applies,
``(B) has not been allowed a credit under
subsection (a) for any preceding taxable year, and
``(C) attests that such individual (and if married,
such individual's spouse) has never had a majority
interest in a residential property.
``(2) Principal residence.--The term `principal residence'
has the same meaning as when used in section 121.
``(3) Purchase.--
``(A) In general.--The term `purchase' means any
acquisition, but only if--
``(i) the property is purchased using a
mortgage loan from a commercial lender,
``(ii) the property is not acquired from a
person related to the person acquiring such
property (or, if married, such individual's
spouse), and
``(iii) the basis of the property in the
hands of the person acquiring such property is
not determined--
``(I) in whole or in part by
reference to the adjusted basis of such
property in the hands of the person
from whom acquired, or
``(II) under section 1014(a).
``(B) Construction.--A residence which is
constructed by the taxpayer shall be treated as
purchased by the taxpayer on the date the taxpayer
first occupies such residence.
``(C) Guaranteed loans included.--A loan shall not
fail to be treated as a mortgage loan from a commercial
lender under subparagraph (A)(i) merely because such
loan is guaranteed under section 184 of the Housing and
Community Development Act of 1992.
``(4) Qualified home purchases expenses.--The term
`qualified home purchase expenses' means amounts paid for--
``(A) a down payment on the purchase of a home, and
``(B) closing costs with respect to such purchase.
``(5) Related persons.--A person shall be treated as
related to another person if the relationship between such
persons would result in the disallowance of losses under
section 267 or 707(b) (but, in applying section 267(b) and (c)
for purposes of this section, paragraph (4) of section
267(c)(4) shall be treated as providing that the family of an
individual shall include only his spouse, ancestors, and lineal
descendants).
``(i) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so determined.
``(j) Inflation Adjustment.--
``(1) In general.--in the case of any taxable year
beginning after 2025, the dollar amounts in this section shall
be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2024' for calendar year 2016 in
subparagraph (A)(ii).
``(2) Rounding.--If any increase under paragraph (1) is not
a multiple of $100, such increase shall be rounded to the
nearest multiple of $100.
``(k) Reporting.--
``(1) In general.--If the Secretary requires information
reporting under section 6045 by a person described in
subsection (e)(2) thereof to verify the eligibility of
taxpayers for the credit allowable by this section, the
exception provided by section 6045(e) shall not apply.
``(2) Information from lender.--The Secretary may require
any lender issuing a loan for the purchase of a property with
respect to which a credit is allowed under subsection (a) or
with respect to which a first-time homebuyer has made a request
for a transfer under subsection (f)(1) to provide such
information relating to the related purchase as the Secretary
determines appropriate.
``(l) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Effective Date.--The amendment made by this section shall apply
to residences purchased in taxable years beginning after the date of
the enactment of this Act.
SEC. 4. STARTER HOME CONSTRUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. STARTER HOME CONSTRUCTION CREDIT.
``(a) In General.--For the purposes of section 38, the starter home
construction credit determined under this section for any taxable year
is an amount equal to 15 percent of the qualified home construction
costs of the taxpayer for the taxable year.
``(b) Limitation.--The amount allowable as a credit under
subsection (a) to any taxpayer for any taxable year shall not exceed
the amount allocated to such taxpayer for the calendar year in which
such taxable year ends under subsection (e).
``(c) Increase for First-time Homebuyer.--In the case of a unit of
housing sold to a first-time homebuyer (as defined in section
36(g)(1)), subsection (a) shall be applied by substituting `30 percent'
for `15 percent'.
``(d) Qualified Home Construction Costs.--For purposes of this
section, the term `qualified home construction costs' means, with
respect to a taxable year, amounts paid or incurred by the taxpayer for
labor and material costs to construct a unit of housing placed in
service during such taxable year--
``(1) the total square footage of which does not exceed
1200 feet, and
``(2) the sale price of which does not exceed 80 percent of
the area median home price.
``(e) State Allocation.--
``(1) In general.--The aggregate starter home construction
credit dollar amount which a housing credit agency may allocate
for any calendar year is the portion of the State starter home
construction credit ceiling allocated under this subsection for
such calendar year to such agency.
``(2) State ceiling initially allocated to state housing
credit agencies.--The State starter home construction credit
ceiling for each calendar year shall be allocated to the
housing credit agency of such State. If there is more than 1
housing credit agency of a State, all such agencies shall be
treated as a single agency.
``(3) State starter home construction credit ceiling.--For
purposes of this subsection, the State starter home
construction credit ceiling applicable to any State for any
calendar year shall be an amount equal to $30 multiplied by the
population of the State (determined in accordance with section
146(j)).
``(4) Reallocation of unused starter home construction
credit amounts among states.--
``(A) In general.--The unused starter home
construction credit amount of a State for any calendar
year shall be assigned by the Secretary for allocation
among qualified States for the succeeding calendar
year.
``(B) Unused starter home construction credit
amount.--For purposes of this paragraph, the unused
starter home construction credit amount of a State for
any calendar year is the excess (if any) of--
``(i) the aggregate amount allocated to
such State for such year under this subsection,
over
``(ii) the aggregate starter home
construction credit dollar amount allocated for
such year.
``(C) Formula for allocation of unused starter home
construction credit amounts among qualified states.--
The amount allocated under this paragraph to a
qualified State for any calendar year shall be the
amount determined by the Secretary to bear the same
ratio to the aggregate unused starter home construction
credit amounts of all States for the preceding calendar
year as such State's population for the calendar year
bears to the population of all qualified States for the
calendar year. For purposes of the preceding sentence,
population shall be determined in accordance with
section 146(j).
``(D) Qualified state.--For purposes of this
paragraph, the term `qualified State' means, with
respect to a calendar year, any State--
``(i) which allocated its entire State
starter home credit ceiling for the preceding
calendar year, and
``(ii) which requests (not later than May 1
of the calendar year) an allocation under
subparagraph (C).
``(E) Secretarial waiver.--The Secretary may issue
a waiver if the Secretary determines such waiver will
serve the purposes of this section to allow such
portion of the State starter home credit ceiling of any
State for any calendar year as was allocated to such
State under paragraph (3) for such calendar year
(determined without regard to this paragraph)--
``(i) to be treated as allocated to such
State for the following calendar year under
such paragraph, and
``(ii) to not be treated as unused starter
home construction credit amount of such State
for purposes of this paragraph.
``(5) Certificate of occupancy required.--The State starter
home construction credit ceiling determined under paragraph (3)
for any calendar year shall be reduced by the amount equal to
50 percent of the amount of allocations made under this
subsection by such State's housing credit agency during the
second preceding calendar year to construct housing with
respect to which no certificate of occupancy has been issued.
``(6) Housing credit agency.--For purposes of this
subsection, the term `housing credit agency' has the meaning
given in section 42(h)(8)(A).
``(f) Tribal Allocation.--
``(1) In general.--The aggregate starter home construction
credit dollar amount which an Indian Tribal Government may
allocate for any calendar year is the portion of the aggregate
Indian starter home construction credit ceiling allocated under
paragraph (3) for such calendar year to such Indian Tribal
Government.
``(2) Aggregate indian starter home construction credit
ceiling.--The aggregate Indian starter home construction credit
ceiling for any calendar year shall be the greatest of--
``(A) $30 multiplied by total number of enrolled
citizens of all Tribes estimated by the Secretary of
the Interior with respect to such calendar year,
``(B) in the case of a calendar year beginning
after the first calendar year with respect to which an
amount was determined under subsection (e)(3), the
lowest amount determined with respect to any State in
the preceding calendar year under such subsection, or
``(C) $30,000,000.
``(3) Allocation of aggregate among tribes.--
``(A) In general.--Not later than 1 year after the
date of the enactment of the American Homeownership
Opportunity Act of 2025, the Secretary of the Treasury,
in consultation with the Secretary of the Interior and
representatives of such Indian Tribal Governments as
administer qualified Indian lands and request to
participate in such consultation, shall determine an
appropriate process to allocate the aggregate Indian
starter home construction credit ceiling among eligible
Indian Tribal Governments for each calendar year.
``(B) Revision.--The Secretary, in consultation
with the Secretary of the Interior and representatives
of such Indian Tribal Governments as administer
qualified Indian lands and request to participate in
such consultation, shall evaluate the process
established under subparagraph (A) not less frequently
than every 5 years and may make such changes to such
process as such Secretary, after such consultation,
determines appropriate to further the purposes of this
section.
``(4) Intertribal consortia.--Under regulations prescribed
by the Secretary, an Indian Tribal Government (or partnership
of Indian Tribal Governments) may authorize an intertribal
consortium, an organization, or an Alaska Native regional or
village corporation, as defined in, or established pursuant to,
the Alaska Native Claims Settlement Act, to plan for,
coordinate or otherwise administer services, finances,
functions, or activities on behalf of such Government under
this subsection, except that the authorized entity shall have
the rights and responsibilities of the authorizing Indian
Tribal Government (or Indian Tribal Governments) only to the
extent provided in the authorizing resolution.
``(5) Definitions.--For purposes of this subsection--
``(A) Qualified indian lands.--The term `qualified
Indian lands' means--
``(i) Indian lands within the meaning of
section 29(j)(8) of the Stevenson-Wydler
Technology Innovation Act of 1980,
``(ii) land held in fee simple by an Indian
Tribal Government,
``(iii) land held by incorporated Native
groups, regional corporations, and village
corporations under the provisions of the Alaska
Native Claims Settlement Act, and
``(iv) Hawaiian Home Lands (as defined in
section 801 of the Native American Housing
Assistance and Self-Determination Act of 1996).
``(B) Eligible indian tribal government.--For
purposes of this subsection, the term `eligible Indian
Tribal Government' means, with respect to a calendar
year, an Indian Tribal Government that--
``(i) requests an allocation under this
subsection for such calendar year, and
``(ii) administers qualified Indian lands.
``(C) Indian tribal government.--The term `Indian
Tribal Government' means the recognized governing body
of any Indian or Alaska Native tribe, band, nation,
pueblo, village, community, component band, or
component reservation, individually identified
(including parenthetically) pursuant to section 104 of
the Federally Recognized Indian Tribe List Act of 1994.
``(g) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2025, the dollar amounts in subsection (e)(3)
and (f)(2) shall each be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2024' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--If any increase under subparagraph (A) is
not a multiple of $5, such increase shall be rounded to the
nearest multiple of $5.
``(h) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so determined.
``(i) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section.''.
(b) Credit to Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (40),
by striking the period at the end of paragraph (41) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(42) the starter home construction credit determined
under section 45BB(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45AA the following new
item:
``Sec. 45BB. Starter home construction credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this section.
SEC. 5. AFFORDABLE HOUSING CONVERSION CREDIT.
(a) Investment Credit for Conversion of Non-residential Buildings
to Affordable Housing.--
(1) In general.--Subpart E of part IV of subchapter A of
chapter 1 of subtitle A of the Internal Revenue Code of 1986 is
amended by inserting after section 48E the following new
section:
``SEC. 48F. AFFORDABLE HOUSING CONVERSION CREDIT.
``(a) Allowance of Credit.--For purposes of section 46, the
affordable housing conversion credit for any taxable year is an amount
equal to 20 percent of the qualified conversion expenditures of the
taxpayer with respect to a qualified affordable housing building placed
in service by the taxpayer during the taxable year.
``(b) Qualified Conversion Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified conversion
expenditures' means, with respect to any qualified affordable
housing building, any amount properly chargeable to capital
account--
``(A) for property for which depreciation is
allowable under section 168, and
``(B) in connection with the qualified conversion
of a qualified affordable housing building.
``(2) Certain expenditures not included.--The term
`qualified conversion expenditures' does not include--
``(A) Limitation on period of conversion.--Except
as provided in subsection (f), any amount paid or
incurred other than during the 2-year period ending on
the date on which the taxpayer places the qualified
affordable housing building in service.
``(B) Cost of acquisition.--The cost of acquiring
any building or interest therein.
``(3) Special rule for brownfields.--Paragraph (1)(A) shall
not apply with respect to any expenditure for clean up of
qualifying brownfield property (as defined in section
512(b)(19)).
``(4) Coordination with rehabilitation credit.--In the case
of any qualified conversion expenditures which are taken into
account for purposes of determining the rehabilitation credit
under section 47, the amount of such expenditures taken into
account under this section (determined without regard to this
paragraph) shall be reduced by 50 percent.
``(c) Qualified Conversion.--For purposes of this section--
``(1) In general.--The term `qualified conversion' means
the conversion of an eligible commercial building into a
qualified affordable housing building if the qualified
conversion expenditures of the taxpayer with respect to such
conversion exceed the greater of--
``(A) an amount equal to 50 percent of the adjusted
basis of such building (determined immediately prior to
such conversion), or
``(B) $100,000.
``(2) Eligible commercial building.--The term `eligible
commercial building' means any building which, with respect to
any conversion--
``(A) was originally placed in service not less
than 20 years before the date on which such conversion
begins, and
``(B) immediately prior to such conversion, was
nonresidential real property (as defined in section
168).
``(d) Qualified Affordable Housing Building.--For purposes of this
section--
``(1) In general.--The term `qualified affordable housing
building' means any residential building if during the 30-year
period beginning on the date on which such building is placed
in service by the taxpayer, not less than 20 percent of the
residential units in the building are both rent-restricted and
reserved for individuals whose income is 80 percent or less of
the area median income.
``(2) Rent and income limitation.--For purposes of this
subsection, rules similar to the rules of subsection (g) of
section 42 shall apply to determine whether a unit is rent-
restricted, treatment of units occupied by individuals whose
incomes rise above the limit, and the treatment of units where
Federal rental assistance is reduced as tenant's income
increases.
``(e) Limitation on Aggregate Credit Allowable.--
``(1) Credit may not exceed credit amount allocated to
building.--
``(A) In general.--The amount of the credit
determined under this section with respect to any
building shall not exceed the qualified conversion
credit dollar amount allocated to such building under
this subsection by the housing credit agency of the
State in which such building is located.
``(B) Time for making allocation.--Except in the
case of an allocation which meets the requirements of
subparagraph (C), an allocation shall be taken into
account under subparagraph (A) only if it is made not
later than the close of the calendar year in which the
building is placed in service.
``(C) Exception where binding commitment.--An
allocation meets the requirements of this subparagraph
if there is a binding commitment (not later than the
close of the calendar year in which the building is
placed in service) by the housing credit agency to
allocate a specified housing credit dollar amount to
such building beginning in a later taxable year.
``(2) State limitation.--
``(A) In general.--The aggregate qualified
conversion credit dollar amount which a housing credit
agency of any State may allocate is the sum of--
``(i) the amount which bears the same ratio
to the national qualified conversion credit
limitation as--
``(I) the population of such State,
bears to
``(II) the population of all
States, plus
``(ii) the sum of any amounts determined
under subparagraph (C).
``(B) National qualified conversion credit
limitation.--The national qualified conversion credit
limitation is $12,000,000,000.
``(C) Additional amounts provided for certain
buildings in economically distressed areas.--
``(i) In general.--For purposes of
subparagraph (A)(ii), in any case in which--
``(I) the housing credit agency of
a State allocates an amount to a
building which is located in an
economically distressed area, and
``(II) the Secretary subsequently
designates such amount for purposes of
this paragraph,
the amount determined under this paragraph with
respect to such building shall be the amount
originally allocated by the housing credit
agency of the State under clause (i).
``(ii) Limitation.--The aggregate amount
which the Secretary may designate under clause
(i)(II) shall not exceed $3,000,000,000.
``(iii) Manner of designation.--Not later
than 120 days after the date of the enactment
of this section, the Secretary shall establish
a program for determining the designation of
amounts that may be designated under this
subparagraph.
``(D) Reallocation of certain amounts.--
``(i) In general.--Notwithstanding
subparagraph (A)--
``(I) no amount may be allocated
under paragraph (1) by a housing credit
agency of an undersubscribed State
after December 31, 2028, and
``(II) the dollar amount determined
under subparagraph (A) with respect to
any oversubscribed State after such
date shall be increased by such State's
share of the reallocation amount.
``(ii) State share.--For purposes of clause
(i), an oversubscribed State's share of the
reallocation amount is the amount which bears
the same ratio to the reallocation amount as--
``(I) the population of such State,
bears to
``(II) the population of all
oversubscribed States.
``(iii) Definitions.--For purposes of this
subparagraph--
``(I) Undersubscribed state.--The
term `undersubscribed State' means any
State that is not an oversubscribed
State.
``(II) Oversubscribed state.--The
term `oversubscribed State' means any
State the housing credit agency of
which has allocated all of the
qualified conversion credit dollar
amount which may be allocated by it
before the date described in clause
(i)(I).
``(III) Reallocation amount.--The
term `reallocation amount' means the
sum of the amounts described in
subparagraph (A) which have not been
allocated by undersubscribed States
before the date described in clause
(i)(I).
``(3) Manner of allocation.--
``(A) Plan for allocation.--
``(i) In general.--Notwithstanding any
other provision of this section, the qualified
conversion credit dollar amount with respect to
any building shall be zero unless such amount
was allocated pursuant to a conversion credit
allocation plan of the housing credit agency
which is approved by the governmental unit (in
accordance with rules similar to the rules of
section 147(f)(2) (other than subparagraph
(B)(ii) thereof)) of which such agency is a
part.
``(ii) Conversion credit allocation plan.--
For purposes of this subparagraph, the term
`conversion credit allocation plan' means a
plan--
``(I) which sets selection criteria
for allocations, taking into account--
``(aa) whether the credit
is needed to assure the
financial feasibility of the
conversion,
``(bb) the extent to which
the conversion results in the
creation of affordable housing,
``(cc) the extent to which
the conversion results in the
creation of housing near
transportation, employment, and
commercial opportunities,
``(dd) the extent to which
the conversion will support
small businesses and economic
revitalization in the
surrounding area,
``(ee) the degree of local
government support for the
conversion, and
``(ff) the readiness of the
building for a qualified
conversion, and
``(II) which provides a procedure
that the agency (or an agent or other
private contractor of such agency) will
follow in monitoring for noncompliance
with the requirements of subsection (d)
and in notifying the Internal Revenue
Service of such noncompliance.
``(B) Binding allocation agreements; reporting.--In
making allocations of qualified conversion credit
dollar amounts, each housing credit agency shall--
``(i) enter into binding agreements with
taxpayers for the allocation of qualified
conversion credit dollar amounts, which
agreements shall specify the amount of
qualified conversion credit dollar amount
allocated to the building and the terms for any
modifications or withdrawal of such allocation,
and
``(ii) report to the Secretary, at such
time and in such manner as the Secretary may
require, the amount of allocations made with
respect to any building.
``(C) State extended use requirements permitted
past 30 years.--For purposes of this paragraph, a
housing credit agency's plan shall not fail to be
treated as a conversion credit allocation plan merely
because it includes, and nothing in this section shall
be construed to limit a binding allocation agreement
from including, affordability or rent restriction
requirements with respect to the building that apply
for a longer period than the 30-year period described
in subsections (d) and (g)(1)(B).
``(4) Definitions and other rules.--
``(A) Housing credit agency.--The term `housing
credit agency' means, with respect to any State, the
housing credit agency authorized under section 42(h)(8)
or such other agency as authorized by the State for
purposes of this section.
``(B) Economically distressed area.--The term
`economically distressed area' means any area which--
``(i) has been designated as a qualified
census tract under section 42(d)(5)(B)(ii) or
as a difficult development area under section
42(d)(5)(B)(iii), or
``(ii) meets the requirement of section
301(a)(3) of the Public Works and Economic
Development Act of 1965.
``(C) State.--The term `State' includes a
possession of the United States.
``(D) Other rules.--Rules similar to the rules of
subparagraphs (A) and (B) of section 42(h)(7) shall
apply for purposes of this section.
``(f) Progress Expenditures.--If the Secretary determines, on the
basis of architectural plans and specifications that a qualified
conversion is reasonably expected to exceed 2 years, rules similar to
the rules of section 47(d) shall apply with respect to such conversion
for purposes of this section.
``(g) Special Rules for Certain Areas.--
``(1) Qualified census tracts and difficult development
areas.--In the case of a qualified affordable housing
building--
``(A) which is located in any area which is
designated as a qualified census tract under section
42(d)(5)(B)(ii) or as a difficult development area
under section 42(d)(5)(B)(iii)), and
``(B) with respect to which during 30-year period
beginning on the date on which such building is placed
in service by the taxpayer, not less than 20 percent of
the residential units in the building are both rent-
restricted and reserved for individuals whose income is
60 percent or less of the area median income,
subsection (a) shall be applied by substituting `30 percent'
for `20 percent'.
``(2) Historic preservation in rural areas.--
``(A) In general.--In the case of a qualified
affordable housing building which is in a rural area
and is part of an historic preservation project, the
taxpayer may elect to substitute `35 percent' for `20
percent' under subsection (a) with respect to such
portion of the aggregate qualified conversion
expenditures taken into account under such subsection
as does not exceed $2,000,000.
``(B) Definitions.--For purposes of this
paragraph--
``(i) Rural area.--The term `rural area'
shall have the meaning given such term under
section 1393(a)(2).
``(ii) Historic preservation project.--The
term `historic preservation project' means a
qualified conversion which involves the
certified rehabilitation of a certified
historic structure. Whether conversion of a
certified historic structure involves certified
rehabilitation shall be determined under rules
similar to the rules of section 47(c)(2)(C).
``(h) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including regulations or other guidance--
``(1) providing for the recapture of the credit determined
under subsection (a) if the qualified affordable housing
building ceases to be a qualified affordable housing building
during the 30-year period beginning on the date that such
building is placed in service by the taxpayer,
``(2) detailing any certifications required from the
taxpayer or any housing credit agency of a State,
``(3) with respect to the application of subsection (b)(4),
``(4) with respect to information reporting on allocations
of qualified conversion credit dollar amounts,
``(5) providing rules for making a determination as to
whether an area is described in subsection (e)(4)(B), and
``(6) which encourages housing credit agencies to allocate,
to the extent practicable, qualified conversion credit dollar
amounts to non-metropolitan counties within a State in
proportion to the non-metropolitan population of the State, but
only to the extent it is demonstrated within such non-
metropolitan counties that there are sufficient qualified
conversion expenditures to warrant such allocations.''.
(b) Transferability of Credit.--Section 6418(f)(1)(A) of such Code
is amended by adding at the end the following new clause:
``(xii) The affordable housing conversion
credit determined under section 48F.''.
(c) Conforming Amendments.--
(1) Section 46 of such Code is amended in paragraph (5) by
striking ``and'' at the end, in paragraph (6) by striking the
period at the end and inserting ``, and'', and by adding at the
end the following new paragraph:
``(7) the affordable housing conversion credit.''.
(2) Section 49(a)(1)(C) of such Code is amended by striking
``and'' at the end of clause (v), in clause (vi) by striking
the period at the end and inserting ``, and'', and by adding at
the end the follow new clause:
``(vii) the basis of any property which is
being converted as part of a qualified
conversion under section 48F.''.
(3) Section 50(a)(2)(E) of such Code is amended by striking
``or 48E(e)'' and inserting ``48E(e), or 48F(f)''.
(4) The table of sections for subpart E of part IV of
subchapter A of chapter 1 of subtitle A of such Code is amended
by adding at the end the following new item:
``Sec. 48F. Affordable housing conversion credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to qualified affordable housing buildings (as defined in section
48F of the Internal Revenue Code of 1986, as added by this section)
placed in service after the date of the enactment of this Act.
SEC. 6. LIHTC BOOST FOR EXTREMELY LOW-INCOME HOUSEHOLDS.
(a) In General.--Section 42(d)(5) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Increase in credit for projects designated to
serve extremely low-income households.--In the case of
any building--
``(i) 20 percent or more of the residential
units (determined as if the imputed income
limitation applicable to such units were 30
percent of area median gross income) in which
are designated by the taxpayer for occupancy by
households the aggregate household income of
which does not exceed the greater of--
``(I) 30 percent of area median
gross income, or
``(II) 100 percent of an amount
equal to the Federal poverty line
(within the meaning of section
36B(d)(3)), and
``(ii) which is designated by the housing
credit agency as requiring the increase in
credit under this subparagraph in order for
such building to be financially feasible as
part of a qualified low-income housing project,
subparagraph (B) shall not apply to the portion of such
building which is comprised of such units (determined
in a manner similar to the unit fraction under
subsection (c)(1)(C)), and the eligible basis of such
portion of the building shall be 150 percent of such
basis determined without regard to this subparagraph.''
(b) Effective Date.--The amendment made by this section shall apply
to buildings which receive allocations of housing credit dollar amount
after the date of enactment of this Act, or in the case of buildings
that are described in section 42(h)(4)(B) of the Internal Revenue Code
of 1986, for obligations that are part of an issue the issue date of
which is after December 31, 2025.
SEC. 7. RENTER TAX CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36B the following new section:
``SEC. 36C. RENTER TAX CREDIT.
``(a) In General.--In the case of an individual who leases the
individual's principal residence (within the meaning of section 121)
during the taxable year and who pays rent with respect to such
residence in excess of 30 percent of the taxpayer's adjusted gross
income for such taxable year, there shall be allowed as a credit
against the tax imposed by this subtitle for such taxable year an
amount equal to the applicable percentage of such excess.
``(b) Credit Limited by 100 Percent of Small Area Fair Market
Rent.--Solely for purposes of determining the amount of the credit
allowed under subsection (a) with respect to a residence for the
taxable year, there shall not be taken into account rent in excess of
an amount equal to 100 percent of the small area fair market rent
(including the utility allowance) applicable to the residence involved
(as most recently published, as of the beginning of the taxable year,
by the Department of Housing and Urban Development).
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Applicable percentage.--The term `applicable
percentage' means the percentage determined in accordance with
the following table:
The applicable
``If the taxpayer's adjusted gross percentage is:
income is:
Not over $25,000............................. 100 percent
Over $25,000, but not over $50,000........... 75 percent
Over $50,000, but not over $75,000........... 50 percent
Over $75,000, but not over $100,000.......... 25 percent
Over $100,000................................ 0 percent.
``(2) Partial year residence.--The Secretary shall
prescribe such rules as are necessary to carry out the purposes
of this section for taxpayers with respect to whom a residence
is a principal residence for only a portion of the taxable
year.
``(3) Rent.--The term `rent' includes any amount paid for
utilities of a type taken into account for purposes of
determining the utility allowance under section
42(g)(2)(B)(ii).
``(4) Married individuals filing separate returns.--In the
case of individuals who are married to each other, have the
same principal residence, and do not file a joint return for
the taxable year, the credit determined under this section with
respect to each such individual shall be 50 percent of the
amount of the credit which would be determined under this
section if such individuals filed a joint return, unless such
individuals agree on a different division of such credit (in
such manner as the Secretary may provide) which does not
aggregate to more 100 percent of such amount.
``(d) Reconciliation of Credit and Advance Payments.--The amount of
the credit allowed under this section for any taxable year shall be
reduced (but not below zero) by the aggregate amount of any advance
payments of such credit under section 7527B for such taxable year.''.
(b) Advance Payment.--Chapter 77 of the Internal Revenue Code of
1986 is amended by inserting after section 7527A the following new
section:
``SEC. 7527B. ADVANCE PAYMENT OF RENTER TAX CREDIT.
``(a) In General.--Not later than 6 months after the date of the
enactment of the Rent Relief Act of 2023, the Secretary shall establish
a program for making advance payments of the credit allowed under
section 36C on a monthly basis to any taxpayer who--
``(1) the Secretary has determined will be allowed such
credit for the taxable year, and
``(2) has made an election under subsection (c).
``(b) Amount of Advance Payment.--
``(1) In general.--For purposes of subsection (a), the
amount of the monthly advance payment of the credit provided to
a taxpayer during the applicable period shall be equal to the
lesser of--
``(A) an amount equal to--
``(i) the amount of the credit which the
Secretary has determined will be allowed to
such taxpayer under section 36C for the taxable
year ending in such applicable period, divided
by
``(ii) 12, or
``(B) such other amount as is elected by the
taxpayer.
``(2) Applicable period.--For purposes of this section, the
term `applicable period' means the 12-month period from the
month of July of the taxable year through the month of June of
the subsequent taxable year.
``(c) Election of Advance Payment.--A taxpayer may elect to receive
an advance payment of the credit allowed under section 36C for any
taxable year by including such election on a timely filed return for
the preceding taxable year.
``(d) Internal Revenue Service Notification.--The Internal Revenue
Service shall take such steps as may be appropriate to ensure that
taxpayers who are eligible to receive the credit under section 36C are
aware of the availability of the advance payment of such credit under
this section.
``(e) Regulations.--The Secretary may prescribe such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes this section.''.
(c) Clerical Amendments.--
(1) In general.--The table of sections for subpart C of
part IV of subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by inserting after the item relating to
section 36B the following new item:
``Sec. 36C. Renter tax credit.''.
(2) Advance payment.--The table of sections for chapter 77
of such Code is amended by inserting after the item relating to
section 7527A the following new item:
``Sec. 7527B. Advance payment of renter tax credit.''.
(d) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after December 31, 2023.
(e) Community Outreach.--Immediately upon the enactment of this
Act, in addition to amounts otherwise available, there are appropriated
out of any money in the Treasury not otherwise appropriated $50,000,000
to remain available until 5 years after the enactment of this Act for
necessary expenses for the Internal Revenue Service to support efforts
to increase enrollment of eligible households in the Renter Tax Credit
allowed under section 36C of the Internal Revenue Code of 1986
(including the advance payment of such credit under section 7527B of
such Code), including but not limited to program outreach, costs of
data sharing arrangements, systems changes, forms changes, and related
efforts, and efforts by Federal agencies to facilitate the cross-
enrollment of beneficiaries of other programs in such Renter Tax
Credit, including by establishing intergovernmental cooperative
agreements with States and local governments, tribal governments, and
possessions of the United States: Provided, that such amount shall be
available in addition to any amounts otherwise available: Provided
further, that these funds may be awarded by Federal agencies to State
and local governments, tribal governments, and possessions of the
United States, and private entities, including organizations dedicated
to free tax return preparation.
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