A team of bipartisan senators has reintroduced the Affordable Housing Credit Improvement Act (AHCIA).
The legislation seeks to expand and strengthen the longtime low-income housing tax credit (LIHTC) program, the nation’s main financing tool to develop affordable and workforce housing.
The AHCIA was introduced April 29 by Sens. Todd Young (R-Ind.), Maria Cantwell (D-Ore.), Marsha Blackburn (R-Tenn.), and Ron Wyden (D-Ore.).
“Affordable housing is needed in Indiana and across the country,” Young said in a statement. “The Affordable Housing Credit Improvement Act will leverage private-sector investment to increase the stock of affordable housing in both urban and rural communities. As a result, this will help to tackle the housing affordability crisis head-on to help Hoosier families, expand our workforce, and strengthen our communities.”
Cantwell also pointed to the need for more affordable homes.
“Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest—and that was before home builders reported an additional 5.5% increase in costs due to tariffs this year,” she said. “We need to do more to lower housing costs for everyone. Expanding and improving the low-income housing tax credit will do just that by making it more affordable to build homes and lower rents.”
The bill has the support of 30 Senate co-sponsors, including nearly two-thirds of the powerful Senate Finance Committee and nearly one-third of the overall Senate, according to the Affordable Housing Tax Credit Coalition (AHTCC).
“The overwhelming bipartisan support for the Affordable Housing Credit Improvement Act of 2025 underscores the critical need to increase the supply of affordable rental homes,” said AHTCC CEO Emily Cadik. “On behalf of our coalition members nationwide, we are thankful for the efforts of the AHCIA lead sponsors and for having nearly one-third of the Senate signed on to support this commonsense solution to expand and strengthen the housing credit.”
The legislation is a companion bill to a version reintroduced in the House in early April, with more than 100 cosponsors.
The AHCIA has been a legislative priority for the affordable housing industry, with the bill falling just short of passage in recent years despite strong support.
Key provisions call for increasing housing credit allocations by restoring the 12.5% cap increase that expired in 2021 and further increasing resources by 50%. AHCIA also seeks to reduce the threshold of private-activity bond financing, also known as the “bond test” from 50% to 25%.
Here is a summary of the bill.
