Tax-exempt bond financing requirement

(a) In general Subparagraph (B) of section 42(h)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: In the case of buildings financed by an obligation first taken into account under section 146 in calendar years beginning after the date of the enactment of the Affordable Housing Credit Improvement Act of 2025, the preceding sentence shall be applied by substituting 25 percent for 50 percent.. (b) Effective date The amendment made by this section shall apply to any building some portion of which, or of the land on which the building is located, is financed by an obligation which is described in section 42(h)(4)(A) of the Internal Revenue Code of 1986 and which is part of an issue the issue date of which is after December 31, 2025.