Trump budget boosts housing tax credits, could add affordable homes in Silicon Valley

AMID A TSUNAMI OF CUTS to the nation’s social safety nets, a golden nugget in the congressional budget bill will allow developers to create more affordable housing.

H.R. 1, the “One Big Beautiful Bill Act,” provides an increase to the Low Income Housing Tax Credit program, the primary source of federal funding for affordable housing. Starting next year, states will be able to permanently increase tax credit allocations by 12%.In addition, one of the programs has lowered the threshold for certain tax-exempt bonds affordable housing projects must acquire before being eligible for these tax credits, from 50% to 25% of the total costs. This reduction means more bond funding will be available for additional developments.