H.R. 5529House119th Congress (2025-2027)In Committee

Fair Housing for Disabeled Veterans Act

AI-Generated Summary

Updated November 23, 2025 at 9:51 PM UTC

The Fair Housing for Disabled Veterans Act changes the tax rules so that a veteran’s disability compensation or pension is not counted as income when determining eligibility for the low‑income housing tax credit and for qualified residential rental project bonds. By removing these payments from the income calculation, the bill aims to make it easier for veterans with disabilities to qualify for affordable housing projects that rely on these tax incentives. The change affects developers and owners of low‑income housing projects as well as veterans who receive disability benefits.

Key Provisions

Amends Internal Revenue Code §142(d)(2)(B) to add a new clause stating that veteran disability compensation or pension payments are to be disregarded when calculating income for the low‑income housing tax credit and qualified residential rental project bonds.
Specifies that the amendment takes effect for any income determinations made after the law is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 19, 2025

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HouseIntro Referral

Introduced in House

September 19, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 19, 2025

Bill Text

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Introduced in HouseIssued September 19, 2025

119th CONGRESS

1st Session

H. R. 5529

IN THE HOUSE OF REPRESENTATIVES

September 19, 2025

Ms. Sánchez (for herself, Mr. Kelly of Pennsylvania, Mr. Gomez, and Mr. Moore of Utah) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to disregard veteran disability compensation or pension payments in determining income for purposes of the low income housing tax credit and qualified residential rental project bonds.

Short title

This Act may be cited as the Fair Housing for Disabeled Veterans Act.

Treatment of veteran disability compensation or pension payments for purposes of low income housing tax credit and residential rental project bonds

(a)

In general

Section 142(d)(2)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:

(v)

Veteran disability compensation or pension

For purposes of determining income under this subparagraph, payments of disability compensation or pension under chapter 11 or 15 of title 38, United States Code, shall be disregarded.

(b)

Effective date

The amendments made by this section shall apply to determinations made after the date of the enactment of this Act.