[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6900 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6900
To amend the Internal Revenue Code of 1986 to address the nation's
cost-of-living crisis.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 18, 2025
Mr. Thompson of California (for himself, Mr. Larson of Connecticut, Mr.
Davis of Illinois, Ms. Sanchez, Ms. Sewell, Ms. DelBene, Ms. Chu, Ms.
Moore of Wisconsin, Mr. Boyle of Pennsylvania, Mr. Beyer, Mr. Evans of
Pennsylvania, Mr. Schneider, Mr. Panetta, Mr. Gomez, Mr. Horsford, Ms.
Plaskett, Mr. Suozzi, Mr. Bell, Ms. Craig, Ms. DeLauro, Mr. Garamendi,
Mr. Goldman of New York, Ms. Johnson of Texas, Mr. Kennedy of New York,
Ms. Matsui, Ms. McBride, Ms. McDonald Rivet, Mr. McGarvey, Mr. Mrvan,
Mr. Quigley, Ms. Salinas, Ms. Titus, and Ms. Scholten) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on Education and Workforce, and
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to address the nation's
cost-of-living crisis.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``American
Affordability Act of 2025''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment is expressed in terms of an
amendment to a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--HOUSING AND MUNICIPAL INFRASTRUCTURE
Subtitle A--Low-income Housing Credit
Part 1--Reform of State Allocation Formulas
Sec. 11101. Increases in State allocations.
Part 2--Reforms Relating to Tenant Eligibility
Sec. 11201. Average income test applicability to exempt facility bonds.
Sec. 11202. Codification of rules relating to increased tenant income.
Sec. 11203. Modification of student occupancy rules.
Sec. 11204. Tenant voucher payments taken into account as rent for
certain purposes.
Sec. 11205. Requirement that low-income housing credit-supported
housing protect victims of domestic abuse.
Sec. 11206. Clarification of general public use requirement relating to
veterans, etc.
Part 3--Rules Relating to Credit Eligibility and Determination
Sec. 11301. Reconstruction or replacement period after casualty loss.
Sec. 11302. Modification of previous ownership rules; limitation on
acquisition basis.
Sec. 11303. Certain relocation costs taken into account as
rehabilitation expenditures.
Sec. 11304. Repeal of qualified census tract population cap.
Sec. 11305. Determination of community revitalization plan to be made
by housing credit agency.
Sec. 11306. Prohibition of local approval and contribution
requirements.
Sec. 11307. Increase in credit for certain projects designated to serve
extremely low-income households.
Sec. 11308. Increase in credit for bond-financed projects designated by
State agency.
Sec. 11309. Elimination of basis reduction for low-income housing
properties energy efficient commercial
building deduction.
Sec. 11310. Restriction of planned foreclosures.
Sec. 11311. Increase of population cap for difficult development areas.
Sec. 11312. Increased cost oversight and accountability.
Part 4--Reforms Relating to Native American Assistance
Sec. 11401. Selection criteria under qualified allocation plans.
Sec. 11402. Inclusion of Indian areas as difficult development areas
for purposes of certain buildings.
Part 5--Reforms Relating to Rural Assistance
Sec. 11501. Inclusion of rural areas as difficult development areas.
Sec. 11502. Uniform income eligibility for rural projects.
Part 6--Exempt Facility Bonds
Sec. 11601. Revision and clarification of the treatment of refunding
issues.
Part 7--Reforms Relating to Disabled Veterans
Sec. 11701. Treatment of veteran disability compensation or pension
payments for purposes of low income housing
tax credit and residential rental project
bonds.
Part 8--Reforms Relating to Certain Other Populations
Sec. 11801. Additional housing credit allocations for certain
populations who face unique barriers to
affordable housing.
Part 9--Qualified Contracts and Right of First Refusal
Sec. 11901. Repeal of qualified contract option.
Sec. 11902. Modification and clarification of rights relating to
building purchase.
Subtitle B--Additional Housing Incentives
Sec. 12001. Investment credit for conversion of non-residential
buildings to affordable housing.
Sec. 12002. Neighborhood homes credit.
Sec. 12003. Modification of historic rehabilitation tax credit.
Sec. 12004. Increase of exclusion of gain from sale of principal
residence.
Sec. 12005. Middle-income housing tax credit.
Subtitle C--Affording the American Dream
Sec. 13001. First-time homebuyer refundable tax credit.
Sec. 13002. Refundable credit for rent paid for principal residence.
TITLE II--LOWERING ENERGY COSTS
Subtitle A--Lowering Costs Through an All-of-the-above Energy Policy
Sec. 21001. Clean energy production credit.
Sec. 21002. Clean electricity investment credit.
Sec. 21003. Advanced manufacturing production credit.
Sec. 21004. Repeal of restriction on the extension of advance energy
project credit program.
Sec. 21005. Reversion of construction date for clean hydrogen
production credit.
Sec. 21006. Reversion of termination for residential clean energy
credit.
Sec. 21007. Reinstatement of special rate for sustainable aviation
fuel.
Subtitle B--Lowering Costs Through Energy Efficiency
Sec. 22001. Energy efficient home improvement credit.
Sec. 22002. New energy efficient home credit.
Sec. 22003. Repeal of termination of new energy efficient commercial
buildings deduction.
Sec. 22004. Restoration of cost recovery for energy property.
Subtitle C--Lowering Costs for Electric Vehicles and Charging
Infrastructure
Sec. 23001. Reversion of termination date for previously-owned vehicle
credit.
Sec. 23002. Reversion of termination date for clean vehicle credit.
Sec. 23003. Qualified commercial clean vehicles credit.
Sec. 23004. Reversion of termination date for alternative fuel vehicle
refueling property credit.
Sec. 23005. Credit for certain new electric bicycles.
Subtitle D--Lowering Costs of Clean Infrastructure and Resiliency
Sec. 24001. Qualifying water reuse project credit.
Sec. 24002. Recycling property investment credit.
Sec. 24003. Exclusion of amounts received from State-based catastrophe
loss mitigation programs.
Sec. 24004. Exclusion from gross income of certain emergency
agricultural assistance.
Sec. 24005. Credit for disaster mitigation expenditures.
Sec. 24006. Establishment of electric power transmission line credit.
Sec. 24007. Qualifying advanced battery project credit.
TITLE III--CHILD AND DEPENDENT CARE
Subtitle A--Child Tax Credit
Sec. 31001. Establishment of refundable child tax credit with monthly
advance payment.
Subtitle B--Child and Dependent Care
Sec. 32001. Enhancement of Child and Dependent Care Tax Credit.
Sec. 32002. Increased maximum contribution to dependent care assistance
programs.
Sec. 32003. Credit for working family caregivers.
Sec. 32004. Licensed family child care credit.
Subtitle C--Ensuring Affordable Adoptions
Sec. 33001. Refundable adoption tax credit.
TITLE IV--EDUCATION AND WORKFORCE TRAINING
Subtitle A--Ensuring Affordable Higher Education
Sec. 41001. American opportunity credit expanded to 6 years, made
temporarily fully refundable.
Sec. 41002. Expansion of Pell Grant exclusion from gross income.
Sec. 41003. Expansion of American Opportunity and Lifetime Learning
Credits.
Sec. 41004. Elimination of denial of American Opportunity Tax Credit
for students convicted of a felony drug
offense.
Sec. 41005. Modification of treatment of student loan forgiveness.
Sec. 41006. Student loan interest deduction limitation applied
separately to each spouse.
Subtitle B--Supporting Our Workforce
Sec. 42001. Educator expense deduction to include early childhood
educators.
Sec. 42002. Allowance of deduction for certain expenses of the trade or
business of being an employee.
Sec. 42003. Modification of deduction for cash tips.
Sec. 42004. Deduction for certain overtime compensation.
Sec. 42005. Above-the-line deduction of expenses of performing artists.
Sec. 42006. Permanent extension of earned income credit rules for
individuals without qualifying children.
Sec. 42007. Application of earned income credit to possessions of the
United States.
Sec. 42008. Election to use prior year earned income for earned income
tax credit.
TITLE V--HEALTHCARE
Sec. 50001. Increase in eligibility for health insurance premium
assistance tax credit.
Sec. 50002. Filling the coverage gap.
Sec. 50003. Freeze of premium adjustment percentage increase.
Sec. 50004. Requiring coverage of certain immunizations recommended by
the Advisory Committee on Immunization
Practices.
TITLE I--HOUSING AND MUNICIPAL INFRASTRUCTURE
Subtitle A--Low-income Housing Credit
PART 1--REFORM OF STATE ALLOCATION FORMULAS
SEC. 11101. INCREASES IN STATE ALLOCATIONS.
(a) In General.--Clause (ii) of section 42(h)(3)(C) of the Internal
Revenue Code of 1986 is amended--
(1) in subclause (I), by striking ``$1.75'' and inserting
``the per capita amount'', and
(2) in subclause (II), by striking ``$2,000,000'' and
inserting ``the minimum amount''.
(b) Per Capita Amount; Minimum Amount.--Section 42(h)(3) of the
Internal Revenue Code of 1986 is amended by striking subparagraphs (H)
and (I) and inserting the following:
``(H) Per capita amount.--For purposes of
subparagraph (C)(ii)(I), the per capita amount shall be
determined as follows:
``(i) Calendar year 2026.--For calendar
year 2026, the per capita amount is $4.25.
``(ii) Calendar year 2027.--For calendar
year 2027, the per capita amount is the product
of--
``(I) 1.25, and
``(II) the dollar amount under
clause (i) increased by an amount equal
to--
``(aa) such dollar amount,
multiplied by
``(bb) the cost-of-living
adjustment determined under
section 1(f)(3) for such
calendar year, determined by
substituting `calendar year
2025' for `calendar year 2016'
in subparagraph (A)(ii)
thereof.
If the amount determined after
application of the preceding sentence
is not a multiple of $5,000, such
amount shall be rounded to the next
lowest multiple of $5,000.
``(iii) Calendar years after 2027.--In the
case of any calendar year after 2027, the per
capita amount is the dollar amount determined
under clause (ii) increased by an amount equal
to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2026' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
Any amount increased under the preceding
sentence which is not a multiple of 5 cents
shall be rounded to the next lowest multiple of
5 cents.
``(I) Minimum amount.--For purposes of subparagraph
(C)(ii)(II), the minimum amount shall be determined as
follows:
``(i) Calendar year 2026.--For calendar
year 2026, the minimum amount is $4,876,000.
``(ii) Calendar year 2027.--For calendar
year 2027, the minimum amount is the product
of--
``(I) 1.25, and
``(II) the dollar amount under
clause (i) increased by an amount equal
to--
``(aa) such dollar amount,
multiplied by
``(bb) the cost-of-living
adjustment determined under
section 1(f)(3) for such
calendar year, determined by
substituting `calendar year
2025' for `calendar year 2016'
in subparagraph (A)(ii)
thereof.
If the amount determined after
application of the preceding sentence
is not a multiple of 5 cents, such
amount shall be rounded to the next
lowest multiple of 5 cents.
``(iii) Calendar years after 2027.--In the
case of any calendar year after 2027, the
minimum amount is the dollar amount determined
under clause (ii) increased by an amount equal
to--
``(I) such dollar amount,
multiplied by
``(II) the cost-of-living
adjustment determined under section
1(f)(3) for such calendar year,
determined by substituting `calendar
year 2026' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
Any amount increased under the preceding
sentence which is not a multiple of $5,000
shall be rounded to the next lowest multiple of
$5,000.''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2025.
PART 2--REFORMS RELATING TO TENANT ELIGIBILITY
SEC. 11201. AVERAGE INCOME TEST APPLICABILITY TO EXEMPT FACILITY BONDS.
(a) In General.--Paragraph (1) of section 142(d) is amended--
(1) by striking ``(A) or (B)'' and inserting ``(A), (B), or
(C)'', and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) Average income test.--A project meets the
requirements of this subparagraph if it meets the
minimum requirements of section 42(g)(1)(C).''.
(b) Effective Date.--The amendments made by this section shall
apply to elections made under section 142(d)(1) of the Internal Revenue
Code of 1986 after March 23, 2018.
SEC. 11202. CODIFICATION OF RULES RELATING TO INCREASED TENANT INCOME.
(a) In General.--Clause (i) of section 42(g)(2)(D) is amended by
striking ``clauses (ii), (iii), and (iv)'' and all that follows and
inserting ``clauses (ii), (iii), (iv), and (vi), notwithstanding an
increase in the income of the occupants above the income limitation
applicable under paragraph (1)--
``(I) a low-income unit shall
continue to be treated as a low-income
unit if the income of such occupants
initially was 60 percent or less of
area median gross income and such unit
continues to be rent-restricted, and
``(II) a unit to which, at the time
of initial occupancy by such occupants,
any Federal, State, or local government
income restriction applied, and which
subsequently becomes part of a building
with respect to which rehabilitation
expenditures are taken into account
under subsection (e), shall be treated
as a low-income unit if the income of
such occupants initially was 60 percent