Visitable Inclusive Tax credits for Accessible Living (VITAL) Act

What it does

• •Increases per capita allocation for low-income housing tax credits from $1.75 to $4.25 per person starting in 2026, with a 25% boost and cost-of-living adjustments in subsequent years.
• •Raises minimum state allocations from $2,000,000 to $4,876,000 starting in 2026, with 25% increase and annual cost-of-living adjustments thereafter.
• •Provides a 150% tax credit boost for buildings where 50% or more units serve people with disabilities, located in walkable neighborhoods, and designated by housing agencies as needing the increase for financial feasibility.
• •Requires states to allocate at least 40% of housing credits (counted on a rolling 3-year basis) to projects serving households with people with disabilities, with units in projects meeting both disability and walkability criteria counted twice.

Why it matters

• •Expands availability of affordable, accessible housing for older adults and people with disabilities, who comprise approximately 26% of the U.S. population but have access to less than 6% of the national housing supply with accessible features.
• •Addresses projected demographic shift where 1 in 4 Americans will be over age 65 by 2060, with many preferring to age in place rather than institutional settings.
• •Aligns housing development with community integration goals by requiring accessible housing in walkable, transit-connected neighborhoods rather than isolated locations.

Who is affected

• •States administering low-income housing tax credit programs, which must increase allocations and meet new disability-serving project quotas.
• •Developers and housing organizations building low-income housing projects, particularly those designing accessible units for persons with mental, physical, sensory, or developmental disabilities.
• •Low-income households, older adults, and people with disabilities seeking affordable, accessible housing in their communities.

What happens next

The bill has been read twice and referred to the Senate Committee on Finance for consideration.