HouseH.R. 10049119th Congress

Visitable Inclusive Tax credits for Accessible Living (VITAL) Act

Full Text

Official text as published. Use Ctrl+F / Cmd+F to search within the document.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10049 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                               H. R. 10049

 To amend the Internal Revenue Code of 1986 to improve the low-income 
                            housing credit.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 2026

Mr. Evans of Pennsylvania (for himself and Mr. Fitzpatrick) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to improve the low-income 
                            housing credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Visitable Inclusive Tax credits for 
Accessible Living (VITAL) Act''.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) increase low-income housing tax credits to increase the 
        stock of disability-accessible and affordable housing;
            (2) ensure that States are using the Federal tax credits to 
        construct housing that will meet the needs of an aging 
        population and currently underserved populations such as 
        households with people with disabilities;
            (3) encourage States to make sure older adults and 
        underserved populations are integrated into their community and 
        can fully participate in society; and
            (4) increase technical assistance, awareness, knowledge, 
        and understanding of the low-income housing credit program and 
        the housing needs of older adults and people with disabilities.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) By 2060, 1 in every 4 Americans will be over age 65, 
        and currently, 2 in 5 adults over age 65 have a disability. As 
        people age, they need structurally safe and functional housing 
        that accommodates people with disabilities.
            (2) Approximately 26 percent of people in the United States 
        have a disability, yet less than 6 percent of the national 
        housing supply is designed to be even rudimentarily accessible.
            (3) An accessible home offers specific features or 
        technologies such as lowered kitchen counters and sinks, 
        widened doorways, and zero-step showers.
            (4) A lack of affordable and accessible housing can 
        relegate people with disabilities to living in institutional 
        settings when they would prefer to live in a community setting.
            (5) Older adults and people with disabilities prefer to 
        remain in their homes for as long as possible. More than 89 
        percent of adults aged 65 and over hope to stay in their homes 
        as they age.
            (6) Older adults and people with disabilities must be able 
        to run errands, work, visit family and friends, and keep doctor 
        appointments, while not always being able to drive. Accessible 
        and affordable public transit options and walkable and roll-
        able neighborhoods allow older adults and people with 
        disabilities to remain independent and active in their 
        communities.
            (7) Many older adults and people with disabilities are 
        experiencing an affordability crisis. More than 7,000,000 older 
        adults and people with disabilities receive Federal monthly 
        Supplemental Security Income and are priced out of every rental 
        housing market in the United States.

SEC. 4. INCREASES IN STATE ALLOCATIONS.

    (a) In General.--Clause (ii) of section 42(h)(3)(C) of the Internal 
Revenue Code is amended--
            (1) in subclause (I), by striking ``$1.75'' and inserting 
        ``the per capita amount'', and
            (2) in subclause (II), by striking ``$2,000,000'' and 
        inserting ``the minimum amount''.
    (b) Per Capita Amount; Minimum Amount.--Section 42(h)(3) of the 
Internal Revenue Code of 1986 is amended by striking subparagraphs (H) 
and (I) and inserting the following:
                    ``(H) Per capita amount.--For purposes of 
                subparagraph (C)(ii)(I), the per capita amount shall be 
                determined as follows:
                            ``(i) Calendar year 2026.--For calendar 
                        year 2026, the per capita amount is $4.25.
                            ``(ii) Calendar year 2027.--For calendar 
                        year 2027, the per capita amount is the product 
                        of--
                                    ``(I) 1.25, and
                                    ``(II) the dollar amount under 
                                clause (i) increased by an amount equal 
                                to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) for such 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2024' for `calendar year 2016' 
                                        in subparagraph (A)(ii) 
                                        thereof.
                                If the amount determined after 
                                application of the preceding sentence 
                                is not a multiple of $5,000, such 
                                amount shall be rounded to the next 
                                lowest multiple of $5,000.
                            ``(iii) Calendar years after 2027.--In the 
                        case of any calendar year after 2027, the per 
                        capita amount is the dollar amount determined 
                        under clause (ii) increased by an amount equal 
                        to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year, 
                                determined by substituting `calendar 
                                year 2026' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any amount increased under the preceding 
                        sentence which is not a multiple of 5 cents 
                        shall be rounded to the next lowest multiple of 
                        5 cents.
                    ``(I) Minimum amount.--For purposes of subparagraph 
                (C)(ii)(II), the minimum amount shall be determined as 
                follows:
                            ``(i) Calendar year 2026.--For calendar 
                        year, 2026, the minimum amount is $4,876,000.
                            ``(ii) Calendar year 2027.--For calendar 
                        year 2027, the minimum amount is the product 
                        of--
                                    ``(I) 1.25, and
                                    ``(II) the dollar amount under 
                                clause (i) increased by an amount equal 
                                to--
                                            ``(aa) such dollar amount, 
                                        multiplied by
                                            ``(bb) the cost-of-living 
                                        adjustment determined under 
                                        section 1(f)(3) for such 
                                        calendar year, determined by 
                                        substituting `calendar year 
                                        2024' for `calendar year 2016' 
                                        in subparagraph (A)(ii) 
                                        thereof.
                                If the amount determined after 
                                application of the preceding sentence 
                                is not a multiple of 5 cents, such 
                                amount shall be rounded to the next 
                                lowest multiple of 5 cents.
                            ``(iii) Calendar years after 2027.--In the 
                        case of any calendar year after 2027, the 
                        minimum amount is the dollar amount determined 
                        under clause (ii) increased by an amount equal 
                        to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for such calendar year, 
                                determined by substituting `calendar 
                                year 2026' for `calendar year 2016' in 
                                subparagraph (A)(ii) thereof.
                        Any amount increased under the preceding 
                        sentence which is not a multiple of $5,000 
                        shall be rounded to the next lowest multiple of 
                        $5,000.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2025.

SEC. 5. INCREASE IN CREDIT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS 
              WITH PEOPLE WITH DISABILITIES.

    (a) In General.--Paragraph (5) of section 42(d) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Increase in credit for projects designated to 
                serve households with people with disabilities.--
                            ``(i) In general.--In the case of any 
                        building--
                                    ``(I) 50 percent or more of the 
                                low-income units in the building are 
                                units designated by the taxpayer to 
                                meet the applicable design standards 
                                for occupancy by persons with mental, 
                                physical, sensory, or developmental 
                                disabilities,
                                    ``(II) which is located in a census 
                                block group designated by the 
                                Environmental Protection Agency as 
                                being--
                                            ``(aa) above average or 
                                        better in terms of walkability, 
                                        or
                                            ``(bb) adjacent to 2 or 
                                        more census tracts described in 
                                        item (aa), and
                                    ``(III) which is designated by the 
                                housing credit agency as requiring the 
                                increase in credit under this 
                                subparagraph in order for such building 
                                to be financially feasible as part of a 
                                qualified low-income housing project,
                        subparagraph (B) shall not apply to the portion 
                        of such building which is comprised of such 
                        units, and the eligible basis of such portion 
                        of the building shall be 150 percent of such 
                        basis determined without regard to this 
                        subparagraph.
                            ``(ii) Design standards.--For purposes of 
                        clause (i)(I), the term `applicable design 
                        standards' means the principles and standards 
                        of adaptable design as detailed in the Uniform 
                        Federal Accessibility Standards, or any 
                        successor standard designated by the 
                        Secretary.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to buildings which receive allocations of housing credit dollar amount 
or, in the case of projects financed by tax-exempt obligations as 
described in section 42(h)(4) of the Internal Revenue Code of 1986, 
which are first taken into account under section 146 of such Code, 
after December 31, 2026.

SEC. 6. REQUIREMENT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS WITH 
              PEOPLE WITH DISABILITIES.

    (a) In General.--Paragraph (1) of section 42(m) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Projects designated to serve households with 
                people with disabilities.--
                            ``(i) In general.--The qualified allocation 
                        plan shall ensure that, with respect to any 3-
                        year period, the applicable percentage is not 
                        less than 40 percent.
                            ``(ii) Applicable percentage.--For purposes 
                        of this subparagraph, the applicable percentage 
                        is the ratio (expressed as a percentage) of--
                                    ``(I) the number of low-income 
                                units in all projects receiving an 
                                allocation of the housing credit dollar 
                                amount during such period which meet 
                                the requirements of subclause (I) of 
                                subsection (d)(5)(C)(i), to
                                    ``(II) the aggregate number of all 
                                low-income units in all projects 
                                receiving an allocation of the housing 
                                credit dollar amount during such 
                                period.
                            ``(iii) Special rule.--For purposes of 
                        clause (ii)(I), any low-income unit which is 
                        part of a project which meets the requirements 
                        of both subclause (I) and subclause (II) of 
                        subsection (d)(5)(C)(i) shall be counted 
                        twice.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to allocations of housing credit dollar amounts made under 
qualified allocation plans (as defined in section 42(m)(1)(B) of the 
Internal Revenue Code of 1986) adopted after December 31, 2026.
                                 <all>