Affordable Housing Credit Carryback Act

The Affordable Housing Credit Carryback Act changes federal tax law to allow taxpayers to apply unused low-income housing tax credits against their income taxes from previous years.

* **Taxpayers** who earn or hold low-income housing tax credits under Section 42 of the Internal Revenue Code. * **The Internal Revenue Service (IRS)**, which will administer the updated tax rules.

Under the bill, taxpayers are permitted to carry back unused low-income housing tax credits to offset their federal tax liability for up to five preceding tax years.

The bill does not authorize direct federal spending, grant appropriations, or create new taxes or fees. Instead, it changes tax credit rules, permitting eligible taxpayers to reduce prior tax liabilities by applying unused tax credits up to five years back.

* **Effective Date:** This change applies only to tax years that begin after the bill is enacted into law. It does not apply retroactively to tax years prior to enactment. * The summary does not mention any additional limits or exceptions.

This bill allows taxpayers with unused low-income housing tax credits to apply those credits to tax bills from up to five years earlier, beginning in the first tax year after the law is passed.