The INCREASE Housing Affordability Act creates a new tax credit for converting commercial buildings (like offices) into residential housing. Property owners who convert eligible buildings can claim a tax credit equal to 15% of qualified conversion costs, with limits of $200,000 per residential unit or $10 million per building. The bill also provides bonus credits for projects with rent-restricted units for lower-income residents (10-20% more credit) and for paying prevailing wages (15% more credit). To qualify, buildings must have been nonresidential for at least 15 years and undergo substantial conversion (with expenditures exceeding adjusted basis or $15,000).
This bill allows qualifying workers to exclude income from a secondary job from their taxable income and payroll taxes. To qualify, workers must designate a primary employer (based on hourly work ≥2,080 hours) and earn secondary income below phase-out thresholds ($100,000 individual/$150,000 married joint filers). The exclusion phases out for income above these thresholds and expires after five years. It directly affects workers with a second job who meet the primary employer requirement, changing how secondary job earnings are taxed under the Internal Revenue Code.
HR 337 redirects $3 million annually from unobligated funds to support groundwater recharge, aquifer storage, and water source substitution projects. It authorizes $3 million per year for fiscal years 2026-2031 to be transferred to the Secretary for these specific water management initiatives. The bill directly affects state and local water agencies implementing these projects by providing dedicated funding. It does not create new programs but reallocates existing unobligated funds from the Infrastructure Investment and Jobs Act. The key mechanism is the annual transfer of $3 million for these water storage and supply projects.
This bill provides tax relief to individuals affected by Hurricanes Helene and Milton in designated disaster areas. It allows affected taxpayers to use their previous year's income to calculate their Earned Income Credit if their current year income is lower, and increases limits on charitable contributions made for hurricane relief efforts, with some contributions treated as made in 2024. The bill also establishes special rules for accessing retirement funds without penalties, including the ability to repay withdrawals within 3 years. These provisions apply to individuals whose principal residence was in a declared disaster area during the incident period (September 28, 2024 - November 2, 2024).
The Disaster Resiliency and Coverage Act of 2025 creates a federal program that provides grants to states and tribal governments to help homeowners in high-risk disaster areas make their homes more resilient. The program covers specific mitigation activities like reinforcing roofs, installing flood barriers, and creating fire-resistant features, with a $10,000 per household limit. Homeowners must have an adjusted gross income under $250,000 ($500,000 for joint returns) to qualify. The bill also includes tax benefits, allowing these grant amounts to be excluded from gross income and providing a 30% tax credit for qualifying mitigation expenditures.
This bill permanently extends the New Markets Tax Credit (NMTC), a federal tax incentive that encourages private investment in low-income communities. It directly affects community development entities (CDEs) that channel capital into underserved neighborhoods for projects like housing, healthcare, and businesses. Key provisions include permanently extending the credit beyond 2025, adding annual inflation adjustments to the credit amount starting in 2026, and ensuring the credit isn't reduced by the alternative minimum tax for investments made after December 2024. The changes apply to taxable years beginning after December 2024, providing long-term stability for community development financing.
This bill increases the annual limit on the tax credit for qualified railroad track maintenance expenses (also referred to as the short line railroad tax credit) and expands eligibility for claiming the credit. Under current law, the tax credit is limited each tax year to $3,500 multiplied by the sum of the number of miles of railroad track owned or leased by the taxpayer (miles owned or leased) and the number of railroad track miles assigned to the taxpayer by a Class II or III railroad (miles assigned). This bill increases the annual limit to $6,100 multiplied by the sum of miles owned or leased and miles assigned. The $6,100 amount used in the calculation of the tax credit limit is adjusted for inflation for tax years beginning after 2025. The bill also expands eligibility for the tax credit to include gross expenses for maintaining railroad tracks owned or leased as of January 1, 2024. Under current law, the tax credit is limited to gross expenses for maintaining railroad tracks owned or leased as of January 1, 2015.
HR 702 establishes state-specific poverty lines called "Regionally Adjusted Poverty Lines" to replace the current uniform national standard. It requires the Census Bureau to calculate these lines annually for each state based on local costs (using Regional Price Parity data), and federal agencies must use whichever measure - regional or current - results in a higher poverty rate for that state when determining eligibility for programs like Medicaid and tax credits. This change aims to better reflect regional cost-of-living differences, potentially expanding access to assistance for low-income families in expensive areas. The bill also mandates a study on the ALICE poverty measure (which includes costs like housing and childcare) but does not incorporate it directly into policy.
This bill changes the name of Coverdell education savings accounts to "Coverdell lifelong learning accounts" and expands their use to cover skill development expenses for people over 16. It allows funds to be used for career training, technical education, adult education, and related costs like computer equipment. The bill raises the age limit for contributions from 18 to 70, sets a $10,000 account limit after age 30, and creates a new tax credit for employers who contribute to these accounts for their employees. It also allows beneficiaries aged 18 and older to deduct their contributions to these accounts. The changes will take effect for contributions and distributions after 2025.
This bill changes tax rules to allow Native Americans receiving care through the Indian Health Service (IHS) to qualify for Health Savings Accounts (HSAs). Previously, individuals using IHS services might have been disqualified from HSAs solely because of that care. The law amends the tax code to explicitly state that IHS eligibility does not disqualify someone from an HSA. The change takes effect for tax years starting after December 31, 2024.
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