Press Release: NAAHL Statement on Reconciliation Bill that Strengthens and Expands LIHTC, Changes Tax Incentive Landscape
(July 3, 2025, Washington, DC) — The National Association of Affordable Housing Lenders (NAAHL) applauds the inclusion of key provisions to expand and strengthen the Low-Income Housing Tax Credit (LIHTC) in the reconciliation bill passed by Congress today. Novogradac estimates that the One Big Beautiful Bill Act’s LIHTC provisions will finance more than one million additional affordable rental homes. It also permanently extends the New Market Tax Credit (NMTC) program, supporting important community development investments.
“The Low-Income Housing Tax Credit is the leading tool we have for financing affordable rental housing. Many years of advocacy from across the industry to strengthen that tool have paid off today to the benefit of the millions of low-income households still in need of affordable housing,” said NAAHL President and CEO Sarah Brundage. “However, we still need to secure more resources to spur the housing supply boom to the scale we need. We know what works well and what we must continue to defend and advocate for. Some of what we need didn’t get across the finish line yet, like the Neighborhood Homes Investment Act¸ and some of our best ideas are still ahead of us.”
The reconciliation bill evolves the landscape of tax incentives. Investors committed to affordable housing and community development will have a renewed and expanded suite of tools from the strengthened LIHTC, a secure future of NMTCs, and a new chapter of Opportunity Zones. However, the bill failed to include the bipartisan proposal exclusively dedicated to increasing affordable homeownership supply, the Neighborhood Homes Investment Act, and significantly scales back renewable energy credits.
NAAHL will continue to advocate for key resources and innovative financing and policymaking for affordable housing and community development. NAAHL proudly serves on the Steering Committee of the ACTION Campaign, a coalition of more than 2,400 organizations advocating for the Low-Income Housing Tax Credit, and co-chairs the Neighborhood Homes Coalition.
Click here to read NAAHL’s Fact Sheet on the final reconciliation bill.
NAAHL’s mission is to expand economic opportunity through innovative financing and policymaking for affordable housing and community development. Founded in 1990, NAAHL is the national alliance of the leading investors and lenders in affordable housing and community development – bringing together banks, CDFIs, and other public, private, and nonprofit lenders.