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Senators Re-Introduce Bipartisan Bill to Create Tax Credit for Revitalizing Single-Family Homes in Distressed Neighborhoods

Friday, January 29, 2021 - 11:30AM

A bipartisan group of six senators introduced legislation this week to create a tax credit similar to the low-income housing tax credit (LIHTC) for the rehabilitation of deteriorated single-family homes in distressed neighborhoods. The Neighborhood Homes Investment Act would create a credit for 35% of the lesser of the qualified development cost or 80% of the national median sales price for new homes. The credit would be available for qualifying homes sold at prices generally no more than four times the applicable area median gross income to buyers whose income is no more than 140% of the area median gross income. The legislation calls for an annual state cap of $6 per capita or $8 million. The bill–similar to legislation introduced last  year in the previous session of Congress–is sponsored by Sens. Ben Cardin, D-Maryland; Rob Portman, R-Ohio; Christopher Coons, D-Delaware; Todd Young, R-Indiana; Sherrod Brown, D-Ohio; and Tim Scott, R-South Carolina.

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