A bill to amend the Internal Revenue Code of 1986 to exclude from gross income grants and the proceeds of transferrable tax credits supporting the development of affordable housing, and for other purposes.

On September 23, 2026, Senator Peter Welch (D-VT) introduced S5472 in the 119th Congress. The bill proposes amending the Internal Revenue Code to exclude from gross income grants and proceeds from transferrable tax credits that support affordable housing development. The bill has been read twice and referred to the Senate Committee on Finance, marking its early legislative stage. As of the event date, there are no cosponsors, indicating limited initial momentum. The bill does not authorize or appropriate any specific funding amount; it modifies tax treatment. The money trail is indirect: by making affordable housing grants and tax credit proceeds tax-free, the bill would increase the after-tax return for developers and investors in affordable housing projects. This could stimulate investment in the sector, but the effect depends on passage and subsequent implementation. No specific companies are directly named or clearly affected at this stage. The legislative path requires committee consideration, potential amendments, and floor votes in both chambers, making passage uncertain and distant. The impact score of 3 reflects the bill's early procedural status, lack of cosponsors, and absence of direct financial commitments.