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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10856 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10856
To amend the Internal Revenue Code of 1986 to prevent certain alien
individuals from occupying low-income units of qualified low-income
housing projects.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 22, 2026
Mr. Arrington (for himself, Ms. Van Duyne, and Mr. Steube) 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 prevent certain alien
individuals from occupying low-income units of qualified low-income
housing projects.
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 ``LIHTC Security Act''.
SEC. 2. CERTAIN ALIEN INDIVIDUALS PREVENTED FROM OCCUPYING LOW-INCOME
UNITS OF QUALIFIED LOW-INCOME HOUSING PROJECTS.
(a) In General.--Section 42(c) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(3) Occupancy requirement with respect to certain alien
individuals.--
``(A) In general.--No credit shall be determined
under subsection (a) with respect to any qualified low-
income building for any taxable year unless, during the
calendar year preceding the calendar year in which, or
with which, such taxable year begins, all relevant low-
income units of such building meet the occupancy
requirement described in subparagraph (B) determined,
with respect to each such unit, as of the beginning any
lease term of such unit that begins in or with such
calendar year.
``(B) Occupancy requirement.--A unit meets the
occupancy requirement of this subparagraph if no
occupant of such unit is an alien individual who is not
described in one of the paragraphs of section 214(a) of
the Housing and Community Development Act of 1980.
``(C) Relevant low-income unit.--For purposes of
this paragraph, the term `relevant low-income unit'
means, with respect to any qualified low-income
building, each low-income unit of such building taken
into account in determining the applicable fraction
with respect to such building under paragraph (1).
``(D) State election to reduce housing credit
dollar amount in lieu of occupancy requirement.--
Subparagraph (A) shall not apply to any qualified low-
income building for any taxable year if the State in
which such building is located does not have an
election in effect under section 42(h)(3)(J)(ii) for
the calendar year in which, or with which, such taxable
year begins.
``(E) Transition rule.--
``(i) In general.--In the case of any
transition-eligible building for any taxable
year beginning before January 1, 2031,
subparagraph (A) shall be applied by
substituting `75 percent of such units' for
`all of such units'.
``(ii) Transition-eligible building.--For
purposes of this subparagraph, the term
`transition-eligible building' means any
qualified low-income building if--
``(I) the housing credit dollar
amount allocated to such building
reduced the housing credit dollar
amount of the allocating agency for a
calendar year before 2027, or
``(II) section 42(h)(1) does not
apply to any portion of the eligible
basis of such building by reason of
having been financed with the proceeds
of an obligation issued before January
1, 2027.''.
(b) State Election To Reduce Housing Credit Dollar Amount in Lieu
of Occupancy Requirement.--Section 42(h)(3) of such Code is amended by
adding at the end the following new subparagraph:
``(J) Reduction of housing credit dollar amount.--
``(i) In general.--In the case of any
calendar year with respect to which an election
under clause (ii) is not in effect with respect
to any State, each of the dollar amounts in
effect under clauses (I) and (II) of
subparagraph (C)(ii) for such calendar year
with respect to such State (after any increase
under subparagraphs (H) and (I)) shall be
reduced by multiplying such dollar amount by
0.95.
``(ii) Election.--Clause (i) shall not
apply with respect to any State for any
calendar year if such State elects the
application of this clause for such calendar
year. Such election shall be made at such time
and in such manner as the Secretary may
provide, except that such election shall apply
for the calendar year for which made and each
subsequent calendar year unless revoked with
the consent of the Secretary.
``(iii) Certain occupancy requirements made
applicable based on state election.--For
application of certain requirements to
qualified low-income buildings located in
States with an election in effect under clause
(ii), see subsection (c)(3).''.
(c) Effective Date.--
(1) Occupancy requirement.--The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 2027.
(2) State election to reduce housing credit dollar amount
in lieu of occupancy requirement.--The amendment made by
subsection (b) shall apply to calendar years beginning after
December 31, 2027.
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