Ruben Gallego Introduces Bipartisan Bill Spurring Affordable Housing Investments

Senator Ruben Gallego (D-AZ) has introduced a bipartisan bill designed to spur affordable housing investments.

What the Bill Does

Specifically, Sen. Gallego's Affordable Housing Credit Carryback Act extends the carryback period for the Low Income Housing Tax Credit (LIHTC) from one year to five.

Under current law, the Low Income Housing Tax Credit (LIHTC) applies against an investor's tax liability in the year it is received. By extending the tax liability from one year to five, investors are afforded greater flexibility since the credit is now more competitive, even during a recession, when demand for affordable housing goes up, but investors lack the tax liability to offset.

What Lawmakers are Saying

"By providing more tax flexibility to builders and investors, our bipartisan bill will allow more housing to come online faster," said Sen. Gallego in a press release. "Arizona needs more housing, and it needs it now. That's why I'm fighting to help increase supply and lower the cost of housing for Arizona families."

Senator Mike Rounds (R-SD), the bill's cosponsor, said, "Addressing housing supply challenges has been a central pillar of this Congress's agenda."

"Making additional improvements to the low-income housing tax credit (LIHTC) would support that effort and fortify the credit as a strong tool for affordable housing development and rehabilitation," Sen. Rounds continued. "I hear from constituents every day about limited access to affordable housing. Expanding the LIHTC carryback period from one to five years will provide investors necessary flexibility to improve our nation's affordable housing supply."

Gallego's Housing Efforts

The Arizona Senator has made affordable housing a priority of his since entering office last year, expressing support in April 2025 for the Trump Administration's formation of a task force to address the possibility of opening federal lands to housing development, thereby solving the housing crisis.

That same month, Gallego introduced and backed the Housing Unhoused Disabled Veterans Act (HUDVA) and the Housing Affordability Act, while in September he introduced the Uplifting First-Time Homebuyers Act.

Most recently, in May, Gallego introduced a bill reauthorizing and modernizing the Native American Housing Assistance and Self-Determination Act (NAHASDA).