On June 16, the Senate Finance Committee released text of its portion of that chamber’s reconciliation bill. The committee has included several provisions that would expand and strengthen the Low-Income Housing Tax Credit (LIHTC) program, including:
- A permanent 12% increase in the allocation of competitive (9%) tax credits beginning in 2026.
- A permanent lowering of the bond financing threshold for non-competitive (4%) tax credits.
These two provisions differ slightly from what was included in the House’s reconciliation bill, which passed the chamber narrowly in May. While the Senate’s proposed allocation increase is marginally smaller (12 percent vs. 12.5 percent), it would be a permanent increase. While the House included a 30 percent basis boost for rural and Native communities, the Senate bill does not include this provision.
While the housing credit provisions in the bill enjoy widespread support, several other provisions in the Finance Committee’s text have already attracted criticism from other Senators. PHADA will continue to keep members updated regarding all the latest reconciliation news in the Advocate, through Breaking News, and social media.