Bill gives big tax breaks to groups that own low-income rental homes.

What it does

The bill creates new tax rules for partnerships. These groups own and fix up older rental homes for low-income families. They can claim large tax deductions. They avoid paying taxes on profits when they sell properties after ten years. They can use rental losses to reduce other income. They get grants for properties without paying taxes on the grants. They still claim full depreciation deductions.

Who it affects

Low-income renters may benefit if older rental homes get fixed up. Tax-exempt organizations, state and local housing agencies, tribal housing agencies, and large real-estate investors receive the tax breaks. The federal government loses tax money.

One thing to notice

The bill does not require homes to stay affordable for low-income families. After the initial period ends, properties can be converted to market-rate housing. They keep all the tax benefits already claimed.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• Jul 2, 2026 — Introduced · Congress.gov: “Introduced in House”
• Jul 2, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Words to know

• tax-exempt organizations — Groups like nonprofits and foundations that do not pay federal income taxes.
• depreciation deductions — Tax deductions for the yearly wear and tear on a building.
• rental losses — Money lost when rental income is less than property expenses.
• market-rate housing — Rental homes priced at whatever the market will pay, not affordable.