The proposed bill includes provisions that exempt military housing allowances from being counted as income for determining eligibility for low-income housing tax credits. This adjustment is designed to facilitate access to housing benefits for military families, enabling them to qualify for more assistance without the added burden of counting their basic housing allowances as part of their taxable income. Furthermore, the bill increases the low-income housing credit for buildings located near designated large military installations, thereby incentivizing the construction and renovation of residential properties in areas with a high military presence.
Summary
House Bill 9659, titled the 'Low Income Housing for Defense Communities Act', aims to amend the Internal Revenue Code of 1986 to provide tax incentives for rental housing specifically designed for members of the Armed Forces. The bill is focused on enhancing affordable housing opportunities for military personnel who face unique challenges in securing adequate accommodation due to their service commitments. This legislation reflects a legislative intent to address the housing needs of military families and improve the overall availability of affordable housing near military installations.
Contention
While this bill aims to generate support among military advocates, it may face contention from those concerned with how such tax incentives could impact local housing markets. Critics may argue that increasing the number of tax-exempt housing projects could inadvertently inflate housing prices in already competitive areas, making it harder for non-military residents to find affordable housing. Also, there may be concerns over the criteria for what constitutes a 'large military installation', which could lead to discrepancies in the application of the law and local economic implications.