LIHTC Security Act

Limits on low-income housing tax credits

This bill would change rules for the Low-Income Housing Tax Credit (LIHTC). States could either adopt a new occupancy rule or take a 5% cut in specified housing credit dollar amounts. In states that adopt the occupancy rule, a building's credit would generally be denied unless, for the prior calendar year, no low-income unit was occupied by certain noncitizens not described in section 214(a) of the 1980 Housing and Community Development Act. States that do not elect would have the dollar amounts multiplied by 0.95 for calendar years starting after December 31, 2027. The occupancy requirement would apply to taxable years beginning after December 31, 2027. For transition-eligible buildings, the rule would require 75% of relevant low-income units to meet the occupancy test for taxable years beginning before January 1, 2031.