Tax Relief for American Families and Workers Act

This bill passed in the House of Representatives by a 357 – 70 vote on January 31, that includes provisions to expand Housing Credit production. We encourage our Senators to urge Senate Majority Leader Chuck Schumer (D-NY) or Minority Leader Mitch McConnell (R-KY) to bring the bill to the floor of the Senate for a vote.  

Key Points on the Housing Provisions in the Tax Bill  

• The Tax Relief for American Families and Workers Act includes two provisions that would allow state Housing Finance Agencies to finance more affordable rental housing over the next two years with the Housing Credit: 

1. 1. It would decrease the private activity bond (PAB) financing threshold for 4% LIHTCs from 50 to 30 percent applicable in calendar years 2023, 2024, and 2025 and 
   2. It would restore the 12.5% increase in the annual 9% LIHTC allocation for 2023-2025.  

• These two changes would finance more than 200,000 additional rental homes across the nation, supporting more than 300,000 jobs and generating $34.3 billion in wages and business income and $11.9 billion in tax revenue.  

• The House Ways and Means Committee advanced the bill out of committee with a 40 – 3 vote. The legislation then received resounding bipartisan support from the full House with a 357 – 70 vote to pass it. The vast majority of House members from each party voted in favor of the bill, with many speaking in support of the Housing Credit provisions during the floor debate.