H.R.308 - Low Income Housing for Defense Communities Act (119th Congress)
Summary
H.R. 308, the Low Income Housing for Defense Communities Act, aims to amend the Internal Revenue Code of 1986 to provide tax incentives for rental housing for members of the Armed Forces. The bill proposes to exclude military basic housing allowances from income calculations when determining eligibility for low-income housing tax credits and tax-exempt bonds for qualified residential rental projects. It also seeks to increase the low-income housing credit for buildings located near large military installations.
Expected Effects
The likely effect of this bill is to increase the availability of affordable housing for military personnel and their families, particularly those stationed near large military installations. By excluding the Basic Allowance for Housing (BAH) from income calculations, more military families may qualify for low-income housing tax credits and tax-exempt bonds. This could stimulate investment in housing projects near military bases.
Potential Benefits
- Increased access to affordable housing for military families.
- Stimulation of investment in housing construction near military installations.
- Potential reduction in financial strain on military members due to housing costs.
- Improved quality of life for military personnel and their families.
- Support for communities surrounding military bases through increased housing options.
Potential Disadvantages
- Potential for increased tax burden on other taxpayers to offset the tax incentives.
- Possible unintended consequences of prioritizing housing near military installations over other areas.
- Risk of inefficient allocation of resources if the incentives are not properly targeted.
- Complexity added to the tax code, potentially increasing compliance costs.
- The $2,833,000,000 threshold for "large military installation" may need adjustment over time due to inflation.
Constitutional Alignment
This bill appears to align with the general welfare clause of the Constitution, as it aims to improve the living conditions of military personnel, who contribute to national defense. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8). The bill utilizes tax incentives, a power granted to Congress, to achieve its objectives.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).