TX HB1865

Increases the maximum low income housing tax credits that can be allocated to an individual development from $2 million to $3 million in a single application round

Maintains the existing $6 million cap on total housing tax credits that can be allocated to a single applicant in one application round

Applies only to applications submitted during the 2026 qualified allocation plan cycle or subsequent plans adopted by the Texas Department of Housing and Community Affairs

Applications submitted under earlier qualified allocation plans remain governed by the law in effect when that application cycle began

Takes effect September 1, 2025