WASHINGTON, D.C. — Senator Peter Welch (D-Vt.) joined Senators Martin Heinrich (D-N.M.), Ron Wyden (D-Ore.), and Chris Van Hollen (D-Md.) in introducing the New Homes Tax Credit Act, legislation that will provide tax credits to incentivize new investments and additional resources for home construction and renovations for working families. The New Homes Tax Credit Act will address the lack of housing inventory for individuals and families whose incomes are below 120% of the area median income (AMI), particularly including in areas where middle-income families have historically been priced out. In Burlington, Montpelier, and Rutland this added housing inventory would benefit families with annual combined incomes of up to $142,680, $126,480, and $114,000, respectively. 

“The housing shortage crisis has been brutal for communities across the country. In Vermont, we’ll need at least 30,000 more homes by 2030. We must find new and innovative ways to encourage new construction and renovations of starter homes for lower and moderate-income communities,” said Senator Welch. “Everyone deserves to have a safe and affordable place to live.”  

“Every New Mexican who’s looked at buying a home knows: housing prices are too high. To solve that, we need to build and renovate more homes. It’s that simple,” said Senator Heinrich. “My New Homes Tax Credit Act will help boost home construction and renovation for middle-income New Mexicans, growing our local economies and giving more working families a shot at success.”  

“Democrats are focused on attacking the cost of living, and with rents and home prices climbing every year, the key to solving our housing crisis is to build, build, build. That’s what this bill is all about,” said Senator Wyden. “The housing crisis is no longer just about big cities like Portland, it’s all over Oregon and the entire country – urban centers, suburban communities, even a lot of rural areas. Congress needs to look at every available solution that’ll get more housing built so that families don’t have to break the bank to pay the rent every month.”  

The New Homes Tax Credit (NHTC) would be administered under the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund certifies Housing Development Entities, which can be CDFIs, government and quasi-governmental entities, or non-profits. Following certification, Housing Development Entities will use the capital raised from exchanging their NHTC with investors to provide funds for construction companies that build or renovate single-family homes.   

The New Homes Tax Credit Act is supported by the Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors, Homewise, Yes Housing, Inc., Housing New Mexico, and Strong Towns Albuquerque.   

“With a nationwide shortage of roughly 1.5 million housing units, we must increase the supply of housing to ease the nation’s housing affordability crisis,” said Carl Harris, Chairman of the National Association of Home Builders. “NAHB is pleased to support the Affordable Housing Expansion Tax Credit, which would create a new federal program to help finance the construction or renovation of affordable, entry-level housing. With nearly half of U.S. households unable to afford a $250,000 home, we must adopt policies to make homeownership more accessible and increase production of entry-level housing.”  

Learn more about the New Homes Tax Credit Act.  

Access a tool to determine the area medium income across the country here. 

Read the full text of the bill.  

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