Affordable Housing Equity Act of 2025

The Affordable Housing Equity Act of 2025 increases tax credits for developers building housing designated for extremely low-income households. It allows developers to claim a 150% increase in the eligible tax credit basis for units where at least 20% of residents earn 30% of local median income or 100% of the federal poverty line. This change directly affects housing developers and low-income renters in qualifying projects by making such developments more financially feasible. The policy modifies existing tax credit rules under Section 42 of the Internal Revenue Code, applying to projects receiving credit allocations after the bill's enactment or with obligations after December 31, 2025.