Bill · S. 5472· Senate(119-S-5472)
Supporting Small Affordable Housing Developers Act
- Introduced
- 9/23/2026
- Last activity
- 9/23/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Peter Welch
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill is called the Supporting Small Affordable Housing Developers Act. It changes the Internal Revenue Code to exclude certain affordable housing grants and the cash proceeds from transferable tax credits from gross income for eligible taxpayers. It also treats Indian Tribal Governments as eligible entities for these specific tax provisions. Additionally, the bill allows certain discharged qualified affordable housing indebtedness to be excluded from gross income for eligible taxpayers. Finally, it denies deductions for consideration paid by a transferee taxpayer when buying a transferable affordable housing tax credit.
Yes· 3 of 10
Does this make housing cost less?+7
The legislation directly incentivizes the development and rehabilitation of affordable housing by providing tax exclusions for grants, tax credit proceeds, and discharged debt.
Does this make it easier to run a small business?+6
The bill provides significant tax relief and incentives specifically tailored for small-scale affordable housing developers and businesses.
Would business owners be better off under this?+5
Small business developers and entities involved in affordable housing construction receive tax relief under the bill.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Excluding Grants and Tax Credit Proceeds from Income: Section 2 of the bill creates Section 139M(a), which states that gross income for an eligible taxpayer shall not include any affordable housing grant or cash received from selling transferable affordable housing tax credits. This could benefit small developers by lowering their tax burden when building or fixing affordable housing.
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Help for Indian Tribal Governments: Section 2(b) amends Section 7871(a) to include Indian Tribal Governments under the new affordable housing grant tax rules, and Section 3(d) expands this to include affordable housing loans. This ensures tribal governments can participate equally in these housing supports.
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Relief for Discharged Debt: Section 3(a) adds a new subparagraph to Section 108(a)(1) allowing eligible taxpayers to exclude discharged qualified affordable housing indebtedness from their gross income, providing financial relief if their affordable housing loans are forgiven or discharged.
Potential Negative Impacts for People
- Denial of Deductions for Buyers: Section 2(c) creates Section 280I, which explicitly states that no deduction shall be allowed for any consideration paid by a transferee taxpayer for the transfer of a transferable affordable housing tax credit. This means the buyers of these tax credits cannot claim a tax deduction for the cash they paid to acquire them.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Native Americans+5Good For Low Income Households+4Good For Rural Residents+3
- Economy And Finance
- Improves Small Business Support+6Reduces Small Business Taxes+5Improves Economic Growth+3
- Social Issues And Justice
- Improves Affordable Housing+7Reduces Homelessness+4
- Environment Energy And Infrastructure
- Improves Rural Development+3
- 9/23/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate