The Affordable Housing Credit Carryback Act would amend the tax code to allow developers and investors to carry back unused low-income housing tax credits for five years. Currently, unused housing tax credits can only be carried forward to future years, but this bill would let taxpayers apply excess credits retroactively to previous tax years to offset prior tax liability. This change would primarily benefit housing developers, property owners, and investors involved in constructing or rehabilitating affordable housing projects. The provision would take effect for tax years beginning after the bill is enacted, with no specific funding appropriations mentioned since the bill works through the tax code rather than direct spending. By allowing credits to be used retroactively, the bill aims to improve the financial viability of affordable housing projects and encourage more development of low-income housing.
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