What does Preamble of Transit Oriented Development Act of 2026 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment aims to modify the low-income housing tax credit. The modifications are intended to incentivize affordable and transit-oriented development. The bill also seeks to incentivize development in certain difficult development areas.

What does SHORT TITLE. of Transit Oriented Development Act of 2026 do?

This bill is formally titled the Transit Oriented Development Act of 2026.

What does LOW-INCOME HOUSING TAX CREDIT FOR TRANSIT-ORIENTED DEVELOPMENT of Transit Oriented Development Act of 2026 do?

This section amends Section 42(d)(5) of the Internal Revenue Code of 1986 to create a tax credit for low-income housing located in transit-oriented development areas. For new buildings in designated areas, the eligible basis is increased to 150% of the basis determined without regard to this subparagraph. For existing buildings, rehabilitation expenditures are increased to 150% of such expenditures. In Hawaii, Alaska, or any territory of the United States, the percentage increases to 155%. A 'transit-oriented development area' is defined as an area within 1/2 mile of a rail, bus, harbor, or waterway station, zoned for high-density, and designated by HUD and a State housing credit agency. Designated areas within metropolitan statistical areas cannot exceed 20% of the area's population. Buildings whose basis or expenditures are determined under subparagraph (B) are not treated as located in a transit-oriented development area for this purpose. The amendment applies to buildings placed in service after the date of enactment of this Act.

What does HUD STUDY REGARDING ADJUSTMENT OF TAX CREDIT ALLOCATIONS TO of Transit Oriented Development Act of 2026 do?

This section requires the Secretary of Housing and Urban Development (HUD) to conduct a study of cost-of-living differences across the United States. The study must consider geographic location, proximity, and accessibility to transit. HUD must submit a report to Congress within one year of the Act's enactment. The report should include the study's results, conclusions, and recommendations for adjusting low-income housing tax credit allocations. The adjustments are intended to reflect cost-of-living differences and are related to section 42 of the Internal Revenue Code of 1986.

Back to bills

Transit Oriented Development Act of 2026

Last updated: 6/11/2026 · Introduced: 6/11/2026

Author: Ed Case (D-HI)

TL;DR (AI)

This bill modifies the low-income housing tax credit to incentivize the construction and rehabilitation of affordable housing near public transportation hubs.
It requires the Department of Housing and Urban Development (HUD) to study cost-of-living differences across the United States, considering transit accessibility, and report recommendations for adjusting tax credit allocations.
The bill increases the eligible basis for new construction and rehabilitation expenditures in designated transit-oriented development areas, with higher percentages for projects in Hawaii, Alaska, and U.S. territories.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account