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The Affordable Housing Construction Act amends the federal low-income housing tax credit to increase funding and incentivize construction of affordable housing with specific features. The bill raises the state housing credit ceiling from $1.75 per capita to $9.79 per capita and increases the aggregate state ceiling from $2 million to $11.34 million, with inflation adjustments beginning in 2026. It also provides bonus tax credits (ranging from 25% to 50% increases in eligible basis) for buildings that meet criteria such as paying prevailing wages, using renewable energy, locating near public transportation, serving people with disabilities, or housing extremely low-income families. Additionally, the bill requires that at least one-third of each state's housing credit ceiling be reserved for projects meeting these enhanced criteria.
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