Increase in credit for projects designated to serve households with people with disabilities

(a) In general Paragraph (5) of section 42(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (C) Increase in credit for projects designated to serve households with people with disabilities (i) In general In the case of any building— (I) 50 percent or more of the low-income units in the building are units designated by the taxpayer to meet the applicable design standards for occupancy by persons with mental, physical, sensory, or developmental disabilities, (II) which is located in a census block group designated by the Environmental Protection Agency as being— (aa) above average or better in terms of walkability, or (bb) adjacent to 2 or more census tracts described in item (aa), and (III) which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project, subparagraph (B) shall not apply to the portion of such building which is comprised of such units, and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph. (ii) Design standards For purposes of clause (i)(I), the term applicable design standards means the principles and standards of adaptable design as detailed in the Uniform Federal Accessibility Standards, or any successor standard designated by the Secretary.. (b) Effective date The amendment made by this section shall apply to buildings which receive allocations of housing credit dollar amount or, in the case of projects financed by tax-exempt obligations as described in section 42(h)(4) of the Internal Revenue Code of 1986, which are first taken into account under section 146 of such Code, after December 31, 2026.