Neighborhood Homes Investment Act

Neighborhood Homes Investment Act

This bill allows a business-related tax credit for certain development costs for the acquisition, rehabilitation, or remediation of qualified real property (i.e., real property affixed on a permanent foundation and comprised of four or fewer residential units, a condominium unit, or a house or apartment owned by a cooperative housing corporation).

The bill also provides for the exclusion from gross income, for income tax purposes, of the value of any subsidy provided to a taxpayer by any state energy office for purposes of improvements made to a qualified residence.

The Neighborhood Homes Investment Act, also known as Bill 118 hr 3940, is a piece of legislation introduced in the US Congress. The main goal of this bill is to provide tax credits to individuals and organizations that invest in the development and rehabilitation of affordable housing in low-income neighborhoods.

Under this bill, investors would be eligible for a tax credit equal to 35% of the qualified development costs incurred in the construction or rehabilitation of a qualified home. The tax credit would be spread out over a five-year period, providing an incentive for long-term investment in affordable housing projects.

The Neighborhood Homes Investment Act aims to address the shortage of affordable housing in low-income communities by encouraging private investment in these areas. By providing tax incentives to investors, the bill seeks to stimulate economic development, create jobs, and improve the overall quality of life in these neighborhoods. Supporters of the bill argue that it will help to revitalize struggling communities and provide much-needed housing options for low-income individuals and families. Critics, however, have raised concerns about the potential cost of the tax credits and the impact on the federal budget. Overall, the Neighborhood Homes Investment Act represents a bipartisan effort to address the affordable housing crisis in the United States and promote economic growth in underserved communities. It is currently being considered by Congress and may undergo further revisions before being voted on.