A Republican bill with 5 Democratic cosponsors · See all 9 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Neighborhood Homes Investment Act aims to amend the Internal Revenue Code of 1986 to create a new tax credit for neighborhood revitalization. This credit is designed to close the financing gap between development costs and sale prices to increase housing in distressed communities. The bill targets the creation and rehabilitation of affordable homes in specific qualified census tracts. It establishes a neighborhood homes credit agency in each state to manage allocations. The credit applies to qualified residences sold to qualified homeowners at an affordable sale price. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 24
- Scored +8
Does this make housing cost less?
The bill provides specific tax credits to increase the supply and accessibility of affordable homes.
- Scored +7
Would households on low incomes be better off under this?
The bill provides specific pathways to affordable homeownership for lower-income families.
- Scored +5
Would people in cities be better off under this?
The bill explicitly targets urban geographies for revitalization.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Housing Supply in Distressed Areas: The bill seeks to address the housing shortage by closing the "value gap" in distressed communities through tax credits (Section 2(a)).
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Support for Homeowners Seeking Improvements: The credit can assist individuals who own homes but have difficulty securing financing for repairs and improvements (Section 2(a)).
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Affordable Homeownership Opportunities: The credit is tied to "affordable sales," which are priced based on a multiple of the median family income for the area, making homes more accessible to qualified homeowners (Section 3(d)).
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Economic Revitalization: The credit is intended to revitalize distressed communities in both rural and urban geographies (Section 2(b)).
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Protection for Homeowners During Rehabilitation: The bill requires credit agencies to create standards to protect owners during rehabilitation, including the capacity to pay costs not covered by the credit (Section 3(f)(1)(F)).
Potential Negative Impacts for People
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Repayment Requirements for Sellers: If a qualified residence is sold within a 5-year period following the affordable sale, the seller must pay a repayment amount to the credit agency (Section 3(g)(1)(A)).
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Lien on Properties: To ensure potential repayments, the neighborhood homes credit agency will place a lien on each qualified residence that is built or rehabilitated as part of a qualified project (Section s3(g)(3)).
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Potential Loss of Deductions: If a qualified residence is converted to rental housing during the 5-year period following an affordable sale, the owner may be denied a deduction for expenses paid for renting the residence (Section 3(h)(10)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — The bill provides specific pathways to affordable homeownership for lower-income families. Would people in rural areas be better off under this? — The bill explicitly targets rural geographies for revitalization. Would people in cities be better off under this? — The bill explicitly targets urban geographies for revitalization. Would Black Americans be better off under this? — Targeting distressed areas can benefit historically underserved minority communities. Would Hispanic Americans be better off under this? — Targeting distressed areas can benefit historically underserved minority communities. Would middle-income households be better off under this? — The bill can assist middle-income households in acquiring or improving homes. Would Native Americans be better off under this? — Targeting distressed areas can benefit many Native American communities. Would business owners be better off under this? — The bill incentivizes residential builders and remodelers.
- Economy And Finance
- Is this likely to grow the economy? — The bill stimulates economic activity through residential construction and neighborhood revitalization. Does this give people more protection from unfair business practices? — The bill requires agencies to establish standards to protect homeowners during rehabilitation. Is this likely to create jobs? — Increased housing development and rehabilitation activity is expected to stimulate construction jobs. Does this make it easier to run a small business? — The bill includes provisions to reduce application burdens for small builders and remodelers. Does this cut taxes for middle-income families? — The bill provides tax credits that can lower costs for middle-income homeowners in qualified areas. Does this cut taxes for small businesses? — The bill aims to minimize application burdens on small residential builders and remodelers.
- Social Issues And Justice
- Does this make housing cost less? — The bill provides specific tax credits to increase the supply and accessibility of affordable homes. Is this likely to lift people out of poverty? — By promoting homeownership in distressed areas, the bill helps build household wealth. Does this narrow racial gaps in how people are treated? — The bill targets distressed communities which often disproportionately impact minority populations. Is this likely to reduce homelessness? — Increasing affordable housing supply can help mitigate housing instability.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — The bill explicitly targets rural geographies for neighborhood revitalization. Does this improve help for people hit by a disaster? — Qualified census tracts can include designated disaster areas. Does this better protect air, water and wildlife? — The bill includes provisions for environmental remediation in development costs.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill requires agencies to make allocation plans and annual reports available to the public. Does this leave more decisions to the states? — States designate their own neighborhood homes credit agencies. Does this give the federal government more power? — The bill involves federal tax credits administered through state agencies.
- 9/11/2025
- 2 Cosponsors added.
- 5/8/2025
- Read twice and referred to the Committee on Finance.
- 7 Cosponsors added.
- Introduced in Senate
3 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Christopher CoonsDemocrat · Delaware
Kevin CramerRepublican · North Dakota
Richard DurbinDemocrat · Illinois
Cindy Hyde-SmithRepublican · Mississippi
Timothy KaineDemocrat · Virginia
Jerry MoranRepublican · Kansas
Tim ScottRepublican · South Carolina
Ron WydenDemocrat · Oregon
Mark WarnerDemocrat · Virginia