“To amend the Internal Revenue Code of 1986 to provide incentives for certain residential rental property.”
No CRS summary available for this bill.
This section establishes new tax incentives under subchapter W of the Internal Revenue Code for qualified residential rental property. It defines qualified property as buildings that are at least 15 years old, owned by partnerships controlled by tax-exempt organizations, governments, tribal housing agencies, or public housing authorities, have at least 70 percent of units rent-restricted and occupied by households at or below 80 percent of area median income, and undergo rehabilitation expenditures of at least 20 percent of adjusted basis or $20,000 per unit (inflation-adjusted after 2026). The incentives include rights of first refusal for government or nonprofit purchasers after year 10, exemptions from passive activity and profit motive rules, accelerated depreciation, and modified debt allocation and at-risk rules.