Today the Senate released its tax portion of the One Big, Beautiful Bill Act, which includes changes to the Housing Credit provisions that would double the projected impact from the version the House passed to well over 1 million affordable homes over the next decade. 

The Housing Credit provisions included in the Senate’s bill are:

• Housing Credit allocation increase: the bill would provide a permanent 12% allocation increase beginning in 2026.
• Bond test threshold reduction: The 50 percent test would be lowered to 25 percent permanently for developments in which the bonds are issued after December 31, 2025. According to Novogradac, a permanent 25 percent test alone will finance 1.14 million affordable homes over the next decade than otherwise possible.