Bill Summary
The proposed legislation, titled the "Low Income Housing for Defense Communities Act," aims to enhance tax incentives related to rental housing specifically for members of the Armed Forces. The key components of the bill include:
1. **Exclusion of Housing Allowance from Income Calculations**: The Act amends the Internal Revenue Code to ensure that the Basic Housing Allowance (BHA) received by military personnel is not counted as income when determining eligibility for low-income housing tax credits. This change is intended to make it easier for military members to qualify for affordable housing.
2. **Support for Rental Projects Near Military Installations**: The bill provides an increase in the low-income housing credit for buildings located within 15 miles of large military installations, defined as those with a replacement value exceeding $2.83 billion. This aims to encourage the development of rental housing in areas where military families are concentrated.
3. **Broadening Housing Access**: The legislation clarifies that buildings benefiting from these incentives do not have to be exclusively occupied by military personnel, allowing for a mix of residents.
Overall, the Act reflects Congress's intent to expand affordable housing options for military members and their families while also promoting investment in housing projects nationwide.
Possible Impacts
Here are three examples of how the "Low Income Housing for Defense Communities Act" could affect people:
1. **Increased Affordable Housing Options for Military Families**: By allowing military housing allowances to be excluded from income calculations for low-income housing tax credits, the legislation can help military families qualify for more affordable housing options. This change may enable them to access rental properties they could not afford otherwise, improving their living conditions and financial stability.
2. **Stimulated Local Economies Near Military Installations**: The act encourages investment in rental properties near large military installations by treating them as "difficult development areas" eligible for increased low-income housing credits. This can lead to the construction of new housing, creating jobs in construction and related industries, and stimulating local economies, which can benefit the broader community as well.
3. **Broader Housing Supply for Non-Military Residents**: While the act focuses on military personnel, the provisions do not require that the buildings be occupied solely by members of the Armed Forces. This means that local residents—including low-income families and workers—could also benefit from the new rental properties created under the act, thereby alleviating housing shortages in those areas and contributing to overall community development.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 308 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 308
To amend the Internal Revenue Code of 1986 to provide tax incentives
for rental housing for members of the Armed Forces.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 9, 2025
Mr. Moore of Utah (for himself and Ms. Strickland) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for rental housing for members of the Armed Forces.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; SENSE OF CONGRESS.
(a) Short Title.--This Act may be cited as the ``Low Income Housing
for Defense Communities Act''.
(b) Sense of Congress.--It is the sense of Congress that in
addition to expanding and strengthening the affordable housing credit
for active duty military members through the provisions in the Low
Income Housing for Defense Communities Act, further steps should be
taken to drive investment into affordable housing projects in the
United States and boost overall housing supply for workers and families
in the United States, such as the Affordable Housing Credit Improvement
Act of 2023.
SEC. 2. TAX INCENTIVES FOR RENTAL HOUSING FOR MEMBERS OF THE ARMED
FORCES.
(a) Military Basic Housing Allowance Not Taken Into Account in
Applying Certain Income Restrictions on Residential Rental Projects.--
(1) Low-income housing tax credit.--Section 42(i) of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(10) Income determined without regard to military basic
housing allowance.--Payments under section 403 of title 37,
United States Code, as a basic pay allowance for housing shall
not be taken into account in determining income for purposes of
this section.''.
(2) Tax-exempt bonds for qualified residential rental
projects.--
(A) In general.--Section 142(d)(2)(B) of such Code,
as amended by subparagraph (B), is amended by inserting
after clause (i) the following new clause:
``(ii) Income determined without regard to
military basis housing allowance.--Payments
under section 403 of title 37, United States
Code, as a basic pay allowance for housing
shall not be taken into account in determining
income for purposes of clause (i).''.
(B) Repeal of deadwood.--Section 142(d)(2)(B) of
such Code is amended by striking clauses (ii), (iii),
and (iv).
(3) Effective date.--The amendments made by this subsection
shall apply to determinations made after the date of the
enactment of this Act.
(b) Increase in Low-Income Housing Credit for Buildings Near
Certain Large Military Installation.--
(1) In general.--Section 42(d)(5)(B) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new clause:
``(vi) Buildings near certain large
military installation.--
``(I) In general.--Any building
which is located within 15 miles of a
large military installation shall be
treated as located in a difficult
development area which is designated
for purposes of this subparagraph.
``(II) Large military
installation.--For purposes of this
clause, the term `large military
installation' means any military
installation with a total plant
replacement value (as determined by the
Secretary of the Defense) in excess of
$2,833,000,000.''.
(2) Effective date.--The amendment made by this subsection
shall apply to buildings placed in service after the date of
the enactment of this Act.
(3) No requirement that buildings be occupied solely by
members of the armed forces.--Nothing in the amendment made by
this subsection shall be applied or interpreted to require that
buildings described in section 42(d)(5)(B)(vi) of the Internal
Revenue Code of 1986 (as added by this section) be occupied
solely by members of the Armed Forces.
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