Short title; etc

(a) Short title This Act may be cited as the American Affordability Act of 2025. (b) Amendment of 1986 code Except as otherwise expressly provided, whenever in this Act an amendment is expressed in terms of an amendment to a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; etc. Title I—Housing and municipal infrastructure Subtitle A—Low-income housing credit Part 1—Reform of State allocation formulas Sec. 11101. Increases in State allocations. Part 2—Reforms relating to tenant eligibility Sec. 11201. Average income test applicability to exempt facility bonds. Sec. 11202. Codification of rules relating to increased tenant income. Sec. 11203. Modification of student occupancy rules. Sec. 11204. Tenant voucher payments taken into account as rent for certain purposes. Sec. 11205. Requirement that low-income housing credit-supported housing protect victims of domestic abuse. Sec. 11206. Clarification of general public use requirement relating to veterans, etc. Part 3—Rules relating to credit eligibility and determination Sec. 11301. Reconstruction or replacement period after casualty loss. Sec. 11302. Modification of previous ownership rules; limitation on acquisition basis. Sec. 11303. Certain relocation costs taken into account as rehabilitation expenditures. Sec. 11304. Repeal of qualified census tract population cap. Sec. 11305. Determination of community revitalization plan to be made by housing credit agency. Sec. 11306. Prohibition of local approval and contribution requirements. Sec. 11307. Increase in credit for certain projects designated to serve extremely low-income households. Sec. 11308. Increase in credit for bond-financed projects designated by State agency. Sec. 11309. Elimination of basis reduction for low-income housing properties energy efficient commercial building deduction. Sec. 11310. Restriction of planned foreclosures. Sec. 11311. Increase of population cap for difficult development areas. Sec. 11312. Increased cost oversight and accountability. Part 4—Reforms relating to Native American assistance Sec. 11401. Selection criteria under qualified allocation plans. Sec. 11402. Inclusion of Indian areas as difficult development areas for purposes of certain buildings. Part 5—Reforms relating to rural assistance Sec. 11501. Inclusion of rural areas as difficult development areas. Sec. 11502. Uniform income eligibility for rural projects. Part 6—Exempt facility bonds Sec. 11601. Revision and clarification of the treatment of refunding issues. Part 7—Reforms relating to disabled veterans Sec. 11701. Treatment of veteran disability compensation or pension payments for purposes of low income housing tax credit and residential rental project bonds. Part 8—Reforms relating to certain other populations Sec. 11801. Additional housing credit allocations for certain populations who face unique barriers to affordable housing. Part 9—Qualified contracts and right of first refusal Sec. 11901. Repeal of qualified contract option. Sec. 11902. Modification and clarification of rights relating to building purchase. Subtitle B—Additional housing incentives Sec. 12001. Investment credit for conversion of non-residential buildings to affordable housing. Sec. 12002. Neighborhood homes credit. Sec. 12003. Modification of historic rehabilitation tax credit. Sec. 12004. Increase of exclusion of gain from sale of principal residence. Sec. 12005. Middle-income housing tax credit. Subtitle C—Affording the American dream Sec. 13001. First-time homebuyer refundable tax credit. Sec. 13002. Refundable credit for rent paid for principal residence. Title II—Lowering energy costs Subtitle A—Lowering costs through an all-of-the-above energy policy Sec. 21001. Clean energy production credit. Sec. 21002. Clean electricity investment credit. Sec. 21003. Advanced manufacturing production credit. Sec. 21004. Repeal of restriction on the extension of advance energy project credit program. Sec. 21005. Reversion of construction date for clean hydrogen production credit. Sec. 21006. Reversion of termination for residential clean energy credit. Sec. 21007. Reinstatement of special rate for sustainable aviation fuel. Subtitle B—Lowering costs through energy efficiency Sec. 22001. Energy efficient home improvement credit. Sec. 22002. New energy efficient home credit. Sec. 22003. Repeal of termination of new energy efficient commercial buildings deduction. Sec. 22004. Restoration of cost recovery for energy property. Subtitle C—Lowering costs for electric vehicles and charging infrastructure Sec. 23001. Reversion of termination date for previously-owned vehicle credit. Sec. 23002. Reversion of termination date for clean vehicle credit. Sec. 23003. Qualified commercial clean vehicles credit. Sec. 23004. Reversion of termination date for alternative fuel vehicle refueling property credit. Sec. 23005. Credit for certain new electric bicycles. Subtitle D—Lowering costs of clean infrastructure and resiliency Sec. 24001. Qualifying water reuse project credit. Sec. 24002. Recycling property investment credit. Sec. 24003. Exclusion of amounts received from State-based catastrophe loss mitigation programs. Sec. 24004. Exclusion from gross income of certain emergency agricultural assistance. Sec. 24005. Credit for disaster mitigation expenditures. Sec. 24006. Establishment of electric power transmission line credit. Sec. 24007. Qualifying advanced battery project credit. Title III—Child and dependent care Subtitle A—Child tax credit Sec. 31001. Establishment of refundable child tax credit with monthly advance payment. Subtitle B—Child and dependent care Sec. 32001. Enhancement of Child and Dependent Care Tax Credit. Sec. 32002. Increased maximum contribution to dependent care assistance programs. Sec. 32003. Credit for working family caregivers. Sec. 32004. Licensed family child care credit. Subtitle C—Ensuring affordable adoptions Sec. 33001. Refundable adoption tax credit. Title IV—Education and workforce training Subtitle A—Ensuring affordable higher education Sec. 41001. American opportunity credit expanded to 6 years, made temporarily fully refundable. Sec. 41002. Expansion of Pell Grant exclusion from gross income. Sec. 41003. Expansion of American Opportunity and Lifetime Learning Credits. Sec. 41004. Elimination of denial of American Opportunity Tax Credit for students convicted of a felony drug offense. Sec. 41005. Modification of treatment of student loan forgiveness. Sec. 41006. Student loan interest deduction limitation applied separately to each spouse. Subtitle B—Supporting our workforce Sec. 42001. Educator expense deduction to include early childhood educators. Sec. 42002. Allowance of deduction for certain expenses of the trade or business of being an employee. Sec. 42003. Modification of deduction for cash tips. Sec. 42004. Deduction for certain overtime compensation. Sec. 42005. Above-the-line deduction of expenses of performing artists. Sec. 42006. Permanent extension of earned income credit rules for individuals without qualifying children. Sec. 42007. Application of earned income credit to possessions of the United States. Sec. 42008. Election to use prior year earned income for earned income tax credit. Title V—Healthcare Sec. 50001. Increase in eligibility for health insurance premium assistance tax credit. Sec. 50002. Filling the coverage gap. Sec. 50003. Freeze of premium adjustment percentage increase. Sec. 50004. Requiring coverage of certain immunizations recommended by the Advisory Committee on Immunization Practices.