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S. 5285

BillFederalSenateIn Committee
A bill to amend the Internal Revenue Code of 1986 to improve the low-income housing credit.
About This Bill
Committee
Latest Action · August 6, 2026
Read twice and referred to the Committee on Finance.
Congress
119th (2025–2027)
Introduced
August 6, 2026
Sponsor
Sen. Amy KlobucharD
Cosponsors (5)
5D 0R
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Summary

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The VITAL Act amends federal tax credit programs to boost the construction of affordable, accessible housing for people with disabilities and older adults. The bill significantly increases the low-income housing tax credits available to states, starting with a per capita amount of $4.25 in 2026 and a minimum state allocation of $4,876,000, both of which will increase annually by 25 percent in 2027 and then adjust for inflation thereafter. It also provides an additional 50 percent tax credit boost for housing projects where at least half the units are designed to accommodate people with disabilities and located in walkable neighborhoods. Beginning in 2027, states must ensure that at least 40 percent of newly funded low-income housing units are designed to serve households with people with disabilities, with projects meeting both accessibility and walkability standards counting twice toward this requirement. The bill addresses a documented shortage, noting that while 26 percent of Americans have disabilities, less than 6 percent of housing is accessible, and millions of low-income seniors and people with disabilities face severe housing affordability challenges.

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