The Affordable Housing Incentives Act allows property owners to avoid paying capital gains taxes when they sell real estate to qualified housing operators for use as affordable housing. To qualify, the property must be subject to a binding legal agreement that ensures it remains affordable or used as a homeless shelter for at least 30 years. The sale price cannot exceed the value determined by a professional appraisal, and the seller must notify the Treasury Department within 90 days of the transfer. The Treasury is required to audit these properties every five years to verify they continue to meet the affordability requirements throughout the 30-year period.
This bill creates a tax exemption for money received by individuals who participate in approved clinical trials, allowing them to keep compensation and expense reimbursements without paying federal income tax. It also ensures that these payments are not counted as income or resources when determining eligibility for federal or federally funded assistance programs. The changes apply to any payments made after December 31, 2025, and are designed to help participants in studies covering a broader range of diseases and conditions.
This bill creates a new tax incentive program to encourage investment in specific areas designated for maritime industries, such as shipyards and ports. It allows certain census tracts identified by the Secretary of Commerce, in consultation with federal officials, to be treated as qualified opportunity zones, which offers tax benefits to investors who put money into businesses operating within those areas. To qualify, the businesses must be directly involved in maritime activities like building or repairing vessels, and the program is limited to a maximum of 100 designated zones. The changes to the tax code will take effect after December 31, 2026, with the initial selection process for these zones beginning by July 1, 2027.
The Data Center Tax Accountability and Disclosure Act of 2026 modifies tax rules and establishes reporting requirements for large data centers. It removes a tax incentive known as bonus depreciation for artificial intelligence data centers unless they meet specific green building standards, such as LEED Platinum or Gold certification. Additionally, the bill requires operators of data centers consuming at least 25 megawatts of power to submit detailed annual reports on their water and electricity usage, emissions, and backup power systems to state or federal agencies. These reports must be made public, and the law prohibits companies from using confidentiality agreements to hide this information. Operators who fail to comply with these reporting requirements face daily civil penalties of up to $100,000 for intentional violations.
The Increasing Opportunity For Reindustrialization Act designates census tracts containing former Department of Defense installations as Qualified Opportunity Zones. This change allows communities near closed military bases to access federal tax incentives intended for economic development, even if they do not meet the standard low-income requirements. The bill specifically amends the Internal Revenue Code to include these areas in the program and increases the number of eligible zones per state to accommodate them.
The American Shipyard Investment Act of 2026 creates a new tax credit to encourage investment in U.S. shipyards that build or repair commercial and military vessels. This credit allows taxpayers to deduct 25 percent of their qualified investments in these facilities from their taxes, increasing to 35 percent for projects located in designated economic zones. The law defines eligible investments as property used for constructing, repairing, or manufacturing parts for ships and sets a deadline of December 31, 2033, for when the property must be put into service. Additionally, the bill permits businesses to transfer unused tax credits to other entities and provides an exemption from a specific alternative tax on shipping activities.
The Grocery Affordability Act creates a new tax credit to encourage the opening and renovation of grocery stores in designated food deserts. This credit allows eligible businesses to claim up to $500,000, calculated as 30 percent of the store's basis or renovation costs, provided the location meets specific criteria regarding distance from existing stores and poverty levels. To qualify, a grocery store must sell at least 35 percent of its goods in fresh produce, meat, dairy, and baked items, while a food desert is defined as an area where many residents live more than one or ten miles away from such a store depending on whether it is in a metropolitan area. The bill applies to taxable years beginning after December 31, 2026, and requires the Treasury Secretary to work with the Department of Agriculture to determine which areas qualify for the credit.
The SKILL Act creates a new tax credit for employers who partner with public colleges and community colleges to develop short-term training programs lasting two years or less. To qualify, employers must be certified by their state agency for contributing to these programs through activities like co-designing curricula, offering apprenticeships, or donating equipment. The credit allows eligible businesses to claim up to $2,500 per student who earns a credential or is hired full-time after completing the program, with a total national spending cap of $500 million per year from 2027 to 2031. State agencies will distribute the available funds to employers on a competitive basis, and the law takes effect for tax years ending after December 31, 2026.
This bill creates a new tax incentive to encourage the construction and renovation of affordable housing near public transportation hubs. It directly affects developers and investors by increasing the Low-Income Housing Tax Credit for buildings located within half a mile of rail, bus, harbor, or waterway stations in high-density zones. The credit amount is boosted to 150% of the standard value, rising to 155% for projects in Hawaii, Alaska, or U.S. territories, with limits on how many areas can be designated in each region. Additionally, the bill requires the Department of Housing and Urban Development to study geographic cost-of-living differences and propose changes to how tax credit funds are distributed among states.
The CHEERS Act of 2026 allows restaurants, bars, and entertainment venues to depreciate energy-efficient draft alcohol equipment, such as stainless steel or aluminum beer taps, over a 15-year period instead of the standard schedule. This tax incentive applies to new equipment installed in U.S. businesses after December 31, 2025, aiming to encourage the adoption of more efficient alcohol distribution systems. The legislation also directs the Treasury Department to create rules covering how this benefit applies to businesses that rent or lease this specialized equipment.
