Housing

# Summary of Proposed Tax Code Amendment This document is a comprehensive proposal for tax code amendments, primarily focused on extending, modifying, and creating new tax credits related to clean energy, energy efficiency, and environmental initiatives. The key components include: ## Housing and Residential Credits - **First-Time Homebuyer Tax Credit**: A refundable credit for first-time homebuyers (Section 13001) - **Renter Tax Credit**: A refundable credit for renters paying more than 30% of their adjusted gross income in rent (Section 13002) ## Clean Energy Credits (Sections 21001-21007) - Extended clean energy production credit with a new phase-out date (2032 or when greenhouse gas emissions reach 25% of 2022 levels) - Extended clean electricity investment credit for wind and solar facilities - Restored credit for wind and solar leasing arrangements - Extended clean hydrogen production credit (construction date reverted to 2033) - Extended residential clean energy credit (termination date moved to 2034) - Reinstated special rate for sustainable aviation fuel (35 cents/ gallon for certain facilities) ## Energy Efficiency Credits (Sections 22001-22004) - Restored product identification number requirement for energy-efficient home improvements - Extended new energy efficient home credit (acquisition date moved to 2032) - Repealed termination of new energy efficient commercial buildings deduction - Restored cost recovery for energy property ## Electric Vehicle and Charging Infrastructure Credits (Sections 23001-23005) - Extended previously-owned vehicle credit (acquisition date moved to 2032) - Extended clean vehicle credit (placement in service date moved to 2032) - Extended commercial clean vehicles credit (termination date moved to 2032) - Extended alternative fuel vehicle refueling property credit (termination date moved to 2032) - Created a new credit for electric bicycles (30% of cost, up to $5,000 per bicycle) ## Clean Infrastructure and Resiliency Credits (Sections 24001-24007) - Created qualifying water reuse project credit (30% of qualified investment) - Created recycling property investment credit (30% of qualified investment with phase-out) - Excluded amounts received from State-based catastrophe loss mitigation programs from gross income - Expanded exclusion for certain emergency agricultural assistance - Created credit for disaster mitigation expenditures (30% of qualifying mitigation activities) - Created qualifying electric power transmission line credit (30% of qualified investment) - Created qualifying advanced battery project credit (30% of qualified investment with $3 billion cap) The proposed amendments generally extend existing credits through 2032-2037, with some credits having phase-out schedules and others having specific termination dates. The document also includes numerous conforming amendments to other sections of the tax code to accommodate these changes.

This bill enhances Civilian Conservation Centers (CCCs) operated by the Interior or Agriculture Departments to train underserved youth in conservation fields. It creates specialized wildfire and forestry training programs at CCCs, sets annual hiring goals (300 covered graduates per year for wildland firefighting roles), and allows direct hiring of graduates without standard civil service rules. The bill also establishes a housing pilot program using covered students to renovate federal housing for firefighters and other agency staff. These provisions directly affect CCC graduates (those who completed training) and current CCC students, aiming to build workforce pipelines for conservation and firefighting careers.

The HEIRS Act of 2025 establishes two grant programs to help homeowners with "heirs' property" - residential land held by multiple heirs without clear title due to intestacy. It provides $30 million annually (2026-2036) to states/local governments that adopt the Uniform Partition of Heirs Property Act, funding title documentation, legal fees, and estate planning. An additional $10 million annually (2026-2030) supports HUD-approved housing counselors and legal services to assist low- and moderate-income minority homeowners in clearing title and retaining homes. The bill requires grantees to prioritize neighborhoods with high concentrations of affected residents and includes mandatory education about heirs' property risks and solutions.

This bill creates federal grant programs to support runaway and homeless youth aged 15-26, with priority for those under 22. It establishes Basic Center Grants for temporary shelter and services, Transitional Living Grants for longer-term housing with support services, and Prevention Services Grants to help youth at risk of homelessness. The bill requires all services to be trauma-informed, culturally appropriate, and tailored to youth's age, gender, and developmental needs, with specific attention to vulnerable populations including LGBTQ youth, youth of color, and those in child welfare or justice systems. It also mandates data collection on trafficking incidents and services provided to youth victims, while requiring coordination with education, health, and social service systems.

The Rural Historic Tax Credit Improvement Act increases tax credits for rehabilitating historic buildings in rural areas. It provides a 40% credit for affordable housing projects (where at least half the building meets affordability standards) and a 30% credit for other rural historic projects, with a $5 million cap on eligible costs. Taxpayers can transfer these credits to other taxpayers, requiring certification and reporting to the IRS. The bill also adds recapture rules for projects failing to meet affordable housing requirements and removes a basis adjustment for these credits, effective for projects placed in service after 2025.

HR 4477, the PRICE Act, creates a new federal grant program to improve affordable manufactured housing communities. It provides funds for infrastructure, repairs, safety upgrades, and community services in communities that are affordable to low- and moderate-income residents (at or below 120% of area median income) and either owned by residents or committed to remaining affordable. Eligible projects include replacing homes (excluding pre-1976 units), weatherization, accessibility modifications, and resident services like eviction prevention. The program prioritizes projects that preserve long-term affordability for low-income residents and is open to community groups, local governments, tribes, and nonprofit housing organizations.

HR 2746, the Fix Moldy Housing Act, directs the EPA to study when indoor mold assessment and remediation is necessary and develop nonbinding national standards for safely identifying and fixing mold. It authorizes $50 million annually (2026-2030) to fund state and tribal programs that license mold remediation professionals and provide grants for mold cleanup in public buildings (like schools) and low-income residential properties. States must prioritize high-risk areas and low-income households for funding, while prohibiting use of funds for high-income housing. The bill establishes concrete mechanisms for federal support but does not mandate enforcement or binding requirements for mold remediation.

Homes for Every Local Protector, Educator, and Responder Act of 2025 or the HELPER Act of 2025 This bill establishes a program administered by the Department of Housing and Urban Development to provide mortgage assistance to law enforcement officers, elementary and secondary school teachers, firefighters, or other first responders. Specifically, these individuals may be eligible for a first-time mortgage on a primary family residence with no down payment. Instead, the mortgage is subject to a one-time, up-front mortgage insurance premium.

The Affordable Housing Credit Improvement Act of 2025 would reform the Low-Income Housing Credit program, which provides tax credits to developers of affordable housing. It would increase state allocations based on population with annual cost-of-living adjustments, modify tenant eligibility rules to allow higher income limits for some residents, and add protections for domestic violence victims in housing. The bill would simplify rules for rural and Native American housing projects, clarify credit eligibility requirements, and require greater transparency in program administration. These changes would directly affect developers, property owners, and low-income tenants in housing projects that receive LIHC tax credits.

The First Home Affordability Act establishes a refundable tax credit for first-time homebuyers purchasing a primary residence in the U.S. The credit equals 2% of the home's purchase price (capped at $25,000 per purchase), with special provisions increasing the credit to 10% for teachers, childcare workers, and first responders. The credit is reduced for higher-income households relative to local area median income and home prices, and requires the homebuyer to be at least 18 years old. Homebuyers must meet specific criteria including no prior home ownership in the past three years and using a federally backed mortgage. If the home is sold within the credit period, a portion of the credit may need to be repaid to the IRS.