WASHINGTON, D.C. – Enterprise Community Partners commend members of the House Ways and Means Committee for including the Low-Income Housing Tax Credit (Housing Credit) in the House tax bill unveiled today—a critical step toward addressing the nation’s deepening affordable housing crisis. The Housing Credit expansion has been a key priority advocated for by businesses, nonprofits, and public agencies across the country.
Pat Cave, Senior Vice President of Public Policy at Enterprise, said the following:
“We’re encouraged that House leaders have recognized the vital role the Housing Credit plays in helping families access stable, affordable homes; a strong step forward in addressing the housing insecurity faced by millions across the country,” said Pat Cave, Senior Vice President of Public Policy.” As the Senate takes up its proposal, we remain hopeful there will be room to include the full range of proven community development solutions, especially the New Markets Tax Credit, which remains a critical tool for driving investment, jobs, and infrastructure in communities that need it most.
“In January, the Trump-Vance Administration issued an executive order prioritizing the expansion of housing supply and the reduction of costs for Americans,” Cave continues. “We urge Congress to continue to meet this moment and deliver meaningful, bipartisan action that improves the lives of families, seniors, and communities nationwide.”
The House tax reconciliation bill includes four production provisions inspired by the Affordable Housing Credit Improvement Act of 2025 (AHCIA, S. 1515 / H.R. 2725). First, it would restore the 12.5 percent increase to the 9 Percent Housing Credit, which expired in 2021, from 2026-2029. Second, it would lower the 50 percent threshold test for bond-financed 4 Percent Housing Credit properties to 25 percent for obligations made after December 31, 2025 and before January 1, 2030. Third, it would create a new 30 percent basis boost for properties in rural areas and another new 30 percent basis boost for properties in Native communities; these would apply for buildings placed in service between 2026 and 2029.
Enterprise also welcomes other provisions in the bill that promise to benefit rural and Native communities, areas that often face some of the greatest barriers to housing access and economic opportunity.
The ACTION Campaign also delivered a timely letter today to the congressional tax writers, signed by 130 mayors, county board chairs, county executives, and their equivalents, calling for support of the AHCIA and enactment of financing provisions in the reconciliation package. ACTION, which is co-chaired by Enterprise and the National Council of State Housing Agencies, is a grassroots, nationwide coalition with over 2,400 members across the country. ACTION notes that the Housing Credit is a model public-private partnership and our country’s number one tool for producing and preserving affordable rental homes, having financed around 4 million affordable units since it was established in 1986.
As Congress works to finalize this historic tax package, Enterprise strongly urges lawmakers to fully include both the Housing Credit and the New Markets Tax Credit to ensure comprehensive investment in housing, jobs, and community development for underserved neighborhoods across the country.
About Enterprise Community Partners
Enterprise is a national nonprofit that exists to make a good home possible for the millions of families without one. We support community development organizations on the ground, aggregate and invest capital for impact, advance housing policy at every level of government, and build and manage communities ourselves. Since 1982, we have invested nearly $80.9 billion and created over 1 million homes across all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands – all to make home and community places of pride, power, and belonging. Join us at enterprisecommunity.org.