Increase in credit for transit oriented developments

(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 transit oriented developments (i) In general In the case of any building described in clause (iii)— (I) in the case of a new building, the eligible basis of such building shall be 150 percent of such basis determined without regard to this subparagraph, and (II) in the case of an existing building, the rehabilitation expenditures taken into account under subsection (e) shall be 150 percent of such expenditures determined without regard to this subparagraph. (ii) Increase for projects meeting prevailing wage standards In the case of any building described in clause (iii) which pays workers employed in the construction of such building a wage not less than the prevailing wage for employment of a similar character in the locality in which such building is located, as most recently determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code, clause (i) shall be applied by substituting 200 percent for 150 percent. (iii) Buildings described For purposes of this subparagraph, a building is described in this clause if 25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by an obligation described in subsection (h)(4)(A) which is a qualified housing issue as defined in section 146(d)(5)(B)(ii).. (b) Effective date The amendment made by this section shall apply to buildings financed by bonds issued after December 31, 2025.