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S. 5366Senate119th Congress (2025-2027)In Committee

Affordable Housing Credit Carryback Act

Sponsored by Ruben GallegoSen. Ruben Gallego (D-AZ)
Introduced August 7, 2026

AI-Generated Summary

Updated August 14, 2026 at 2:22 AM UTC

The Affordable Housing Credit Carryback Act would let taxpayers who claim the low‑income housing tax credit apply that credit to tax returns from up to five prior years, rather than only the current year. This change helps developers and investors in affordable housing projects recover cash flow more quickly. The amendment takes effect for tax years beginning after the law is passed.

Key Provisions

  • Amends Internal Revenue Code § 39(a)(3) to add the low‑income housing tax credit (section 42) to the list of credits that may be carried back, allowing a five‑year carryback period.
  • Specifies that the change applies to taxable years beginning after the law is enacted.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

August 7, 2026

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SenateIntro Referral

Introduced in Senate

August 7, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

August 7, 2026

Bill Text

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Introduced in SenateIssued August 7, 2026

II

119th CONGRESS

2d Session

S. 5366

IN THE SENATE OF THE UNITED STATES

August 7, 2026

Mr. Gallego (for himself and Mr. Rounds) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow 5-year carrybacks for the low-income housing tax credit.

1.

Short title

This Act may be cited as the Affordable Housing Credit Carryback Act.

2.

5-year carryback for low-income housing tax credit

(a)

In general

Section 39(a)(3) of the Internal Revenue Code of 1986 is amended—

(1)

in the heading, by striking marginal oil and gas well production credit and inserting certain credits,

(2)

by inserting or the low-income housing tax credit allowed under section 42 after well production credit in the matter preceding subparagraph (A), and

(3)

in subparagraph (A), by inserting or the low-income housing tax credit, as applicable after well production credit.

(b)

Effective date

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