DASH Act

# Summary of Proposed Housing Tax Credit Amendments This document proposes several new housing-related tax credits and amendments to the Internal Revenue Code, designed to address housing shortages, support middle-income housing, revitalize distressed communities, and assist first-time homebuyers. ## Key Provisions: ### 1. Middle-Income Housing Credit (Section 42A) - Creates a new credit for middle-income housing projects (60-100% of area median income) - Requires an extended use commitment of 15 years after the credit period - Includes "qualified allocation plans" for housing credit agencies - Requires financial feasibility determination before credit allocation - Has special provisions for rural development (5% increase in credit ceiling) - Requires commitment to maintain middle-income housing for extended period ### 2. Neighborhood Homes Credit (Section 42B) - Focuses on rehabilitating homes in distressed communities - Requires homes to be sold to qualified homeowners at affordable prices (4x median family income) - Includes a 5-year repayment period if the home is resold within 5 years - Requires properties to be located in "qualified census tracts" (based on income, poverty rates, and home values) - Has specific requirements for rehabilitation costs and development standards - Includes protections for owners of rehabilitated homes ### 3. First-Time Homebuyer Refundable Credit (Section 36) - Creates a refundable credit equal to 20% of purchase price (up to $15,000) - Includes limitations based on income (modified adjusted gross income), purchase price, and marital status - Requires home to be the principal residence - Includes recapture rules if the home is sold within 6 years (phased recapture from 100% to 20%) - Has specific definitions of "first-time homebuyer" and "principal residence" ## Additional Key Features: - All three credits are treated as part of the general business credit - All three credits are allowed against alternative minimum tax - Includes basis adjustments to reduce property basis by the amount of credit - Contains reporting requirements for taxpayers and credit agencies - Includes inflation adjustments for future years - Has specific provisions for condominiums, cooperative housing, and pyrrhotite remediation The proposed amendments are designed to generate significant housing development (500,000 homes over 10 years), economic activity ($125 billion), job creation (800,000 jobs), and tax revenues ($35 billion) while targeting distressed communities and middle-income housing needs.