HR 9267 — Transit Oriented Development Act of 2026

Summary

Increases the low-income housing tax credit by 50 percent for new buildings and rehabilitation costs for existing buildings located in transit-oriented development areas (areas within 1/2 mile of rail, bus, harbor, or waterway stations zoned for high-density development).
Increases the credit by 55 percent (instead of 50 percent) for transit-oriented development areas in Hawaii, Alaska, and U.S. territories to account for higher costs in noncontiguous areas.
Limits the designation of transit-oriented development areas to no more than 20 percent of the population in any metropolitan or nonmetropolitan statistical area.
Excludes buildings already designated as high-cost areas from eligibility for the transit-oriented development area tax credit increase to avoid duplication of incentives.
Requires the Secretary of Housing and Urban Development to study geographic cost-of-living differences and proximity to transit, and submit recommendations within one year for adjusting low-income housing tax credit allocations to states based on these differences.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Rep. Case, Ed [D-HI-1] (D-HI)

2 cosponsors

Del. Moylan, James C. [R-GU-At Large] (R-GU)
Rep. Tokuda, Jill N. [D-HI-2] (D-HI)

Money behind the sponsor

Top reported contributors to Ed Case’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.

NULL $16,800
ATS COMMUNICATIONS, INC $6,600
ONEBRIEF, INC $6,600
PETERSON MANAGEMENT LLC $6,600
TRIDENT RESEARCH LLC $6,500

Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Ed Case → · Outside spending →

Actions (3)

Jun 11, 2026 Referred to the House Committee on Ways and Means. · house
Jun 11, 2026 Introduced in House
Jun 11, 2026 Sponsor introductory remarks on measure. (CR E570)

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

Full text

IN THE HOUSE OF REPRESENTATIVES

June 11, 2026

Mr. Case (for himself, Mr. Moylan, and Ms. Tokuda) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to modify the low-income housing tax credit to incentivize affordable and transit-oriented development and development in certain difficult development areas, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Transit Oriented Development Act of 2026”.

SEC. 2. LOW-INCOME HOUSING TAX CREDIT FOR TRANSIT-ORIENTED DEVELOPMENT AREAS.

(a) In General.—Section 42(d)(5) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(C) Increase in credit for buildings in transit- oriented development areas.—

“(i) In general.—In the case of any building located in a transit-oriented development area which is designated for purposes of this subparagraph—

“(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) Increased eligible basis for noncontiguous states and territories.—In the case of a transit-oriented development area in Hawaii, Alaska, or any territory of the United States, subclauses (I) and (II) of clause (i) shall each be applied by substituting ‘155 percent’ for ‘150 percent’.

“(iii) Transit-oriented development area.—For purposes of this subparagraph, the term ‘transit-oriented development area’ means an area designated by the Secretary of Housing and Urban Development and State housing credit agency as located in an area within \1/2\ of a mile from a rail, bus, harbor, or waterway station and as zoned for high-density.

“(iv) Limit on areas designated.—The portions of metropolitan statistical areas which may be designated for purposes of this subparagraph shall not exceed an aggregate area having 20 percent of the population of such metropolitan statistical areas. A comparable rule shall apply to nonmetropolitan statistical areas.

“(v) Coordination with high cost areas.— If the eligible basis of a new building, or the rehabilitation expenditures with respect to an existing building, are determined pursuant to subparagraph (B), such building shall not be treated as located in a transit-oriented development area for purposes of this subparagraph.”.

(b) Effective Date.—The amendment made by this section shall apply to buildings placed in service after the date of the enactment of this Act.

SEC. 3. HUD STUDY REGARDING ADJUSTMENT OF TAX CREDIT ALLOCATIONS TO REFLECT GEOGRAPHIC COST-OF-LIVING DIFFERENCES.

The Secretary of Housing and Urban Development shall conduct a study to identify cost-of-living differences throughout the United States based on geographic location and proximity and accessibility to transit. Not later than the expiration of the 1-year period beginning on the date of the enactment of this Act, the Secretary shall submit a report to the Congress setting forth the results and conclusions of the study and recommending formulas for the adjustment of annual allocations to the States of low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 to reflect such cost- of-living differences. <all>

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