OBBBA Expands Low-Income Housing Tax Credit: Permanent Boost for Affordable Housing!

One tax provision made permanent by the One Big Beautiful Bill Act (OBBBA) is the availability of the Low-Income Housing Tax Credit (LIHTC). According to the U.S. Dept. of Housing and Urban Development, this credit is “the most important resource for creating affordable housing in the United States today.” The OBBBA permanently increased 9% LIHTC allocations by 12%, beginning in 2026. In addition, the OBBBA permanently reduced the LIHTC bond test requirement from 50% to 25%. These two provisions are expected to encourage developers to build and rehab more rental housing units for low-income Americans. Contact us for information about qualifying for the credit.