New tax breaks would help property owners create and preserve affordable rental housing.
This bill would offer new tax benefits to owners of residential rental properties that meet specific affordable housing requirements. These benefits aim to encourage the creation and upkeep of housing for low-income individuals by making it more financially appealing for certain organizations to invest in and rehabilitate these properties. It would change how these properties are taxed, from depreciation to how capital grants are handled.
Today, residential rental properties follow general tax rules for depreciation, passive activities, and profit motive, and capital grants are usually taxed or reduce a property's value. If this bill passes, owners of certain affordable rental properties would get new tax breaks, including faster depreciation over 15 years, exemptions from passive activity and profit motive rules, and tax-free capital grants for non-profits and government agencies. These changes aim to make it more attractive to invest in and improve housing for low-income residents.
HR 9573 · 119th Congress · July 2, 2026 · AI Summary by gemini-2.5-flash · 6/10
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