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119-s-5472119th CongressWALLET

Supporting Small Affordable Housing Developers Act

Sponsored By: Senator Welch, Peter [D-VT]

Introduced

Summary

New tax exclusions and debt-forgiveness rules to support small affordable housing developers. This bill would create new tax exclusions for certain grants and cash from the sale of transferrable affordable housing tax credits and would expand tax-free treatment for forgiven affordable-housing debt.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

Debt forgiveness tax break for developers

This bill would let eligible small affordable-housing developers exclude forgiven 'qualified affordable housing' loans from taxable income. The loan would need to be made by the United States, a State or local government, a U.S. possession, or a 501(c)(3) nonprofit and used to develop or rehabilitate affordable housing. Taxpayers would still be required to reduce tax attributes under existing rules. These changes would apply to taxable years beginning after enactment.

No deduction for buying housing credits

This bill would disallow any deduction for amounts paid to buy transferable affordable-housing tax credits. That rule would apply to any taxpayer that pays cash or other consideration to acquire such credits. These rules would apply to taxable years beginning after enactment.

Tax-free grants and credit sales

This bill would let small affordable-housing developers exclude certain grants from taxable income. It would also let eligible developers exclude cash received from selling transferable state or local affordable-housing tax credits. To qualify, a business would need average annual gross receipts under $36,000,000 and operate in NAICS 237210, 238300, 531110, or 23611. The $36,000,000 threshold would be indexed for inflation for years beginning after December 31, 2027. These rules would apply to taxable years beginning after enactment.

Apply housing tax rules to Tribal governments

This bill would extend the affordable-housing grant and qualified-loan tax rules to Indian Tribal Governments. That would let tribal governments use the same exclusions and loan definitions as other eligible entities. These changes would apply to taxable years beginning after enactment.

Sponsors & CoSponsors

Sponsor

Welch, Peter [D-VT]

VT • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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