Energy Efficiency for Affordable Housing Act

The Energy Efficiency for Affordable Housing Act would boost the federal low-income housing tax credit (LIHTC) for existing affordable housing repairs that achieve enhanced energy performance. For eligible rehabilitation projects, the credit would increase to 130% of eligible rehabilitation expenditures if the building meets enhanced energy performance. In high-cost areas, or when paired with existing high-cost rules, the credit can rise to 160%. Enhanced energy performance can be achieved either by meeting a new advanced building construction standard to be set by the Secretary of Energy or by implementing a qualified retrofit plan that reduces site energy use by at least 50%. The plan must be prepared and certified by a qualified professional. The bill also establishes definitions for key terms and sets an effective date: the changes would apply to housing credits allocated after December 31, 2025 (with a separate timeline for bond-financed projects).