A building may qualify with 25 percent bond financing
To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70422, Sec. 70422.
Written by .
A building may qualify with 25 percent bond financing
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70422 in the PDF
What the document says
“25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and”
The section strikes subparagraph (B) of section 42(h)(4) of the Internal Revenue Code of 1986 and inserts a new one under which the allocation rule does not apply to a building where at least 50 percent of the combined basis of the building and its land is financed by qualifying obligations, or where at least 25 percent is so financed and one or more of those obligations are part of an issue dated after December 31, 2025 and provide at least 5 percent of that combined basis.
What the document actually says
“25 percent or more of the aggregate basis of such building and the land on which the building is located is financed by 1 or more obligations described in subparagraph (A), and”
That sentence, in plain words
At least a quarter of the cost must come from such bonds. That covers the building and the land under it.
What this is about
The old route needed half the cost. That route still stands. The new one adds two extra tests on the bonds.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70422, 139 Stat. 234 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“A building may qualify with 25 percent bond financing,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70422, Sec. 70422. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70422-bond-financing/ (retrieved October 10, 2026).
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