Affordable Housing Credit Improvement Act of 2025

S. 1515 would reform and expand the Low-Income Housing Tax Credit, a federal program that finances affordable rental housing. If enacted, the bill would increase the annual amount of housing credits available to states by 50 percent over two years and lower the private activity bond financing threshold from 50 percent to 25 percent. The bill would also provide additional incentives for developments serving extremely low-income households, rural communities, and tribal communities. These changes are projected to finance approximately 1.6 million additional affordable homes over the next decade. The bill would also improve program rules to better serve veterans, victims of domestic violence, formerly homeless individuals, and students seeking to further their education. The legislation is bipartisan, with support from both Republican and Democratic sponsors and cosponsors. The bill is currently under committee consideration and has not yet been voted on by the full Senate.