1. Short title This Act may be cited as the Restoring Tax Credits for Affordable Housing Act . 2. Increase in low-income housing credit (a) Increase of State housing credit ceiling (1) In general Section 42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is amended— (A) by striking $1.75 in subclause (I) and inserting $2.90 , and (B) by striking $2,000,000 in subclause (II) and inserting $3,365,000 . (2) Inflation adjustment Section 42(h)(3)(H) of such Code is amended— (A) in clause (i)— (i) by striking 2002, the $2,000,000 and $1.75 amounts in the matter preceding subclause (I) and inserting 2019, the $3,365,000 and $2.90 amounts , and (ii) by striking 2001 in subclause (II) and inserting 2018 , and (B) in clause (ii)— (i) by striking $2,000,000 in subclause (I) and inserting $3,365,000 , and (ii) by striking $1.75 in subclause (II) and inserting $2.90 . (3) Conforming amendment Section 42(h)(3) of such Code is amended by striking subparagraph (I). (b) Increase in credit percentage (1) Modification of discount rate Section 42(b)(1)(C)(ii) of such Code is amended by striking 72 percent of and inserting the sum of 1.5 percentage points plus . (2) Modification of method of discounting Section 42(b)(1)(C)(i) of such Code is amended to read as follows: (i) assuming the 10-year period referred to in subparagraph (B) commences no less than 2 years after a housing credit allocation is made under subsection (h), . (3) One-time adjustment Section 42(b)(1) of such Code is amended by adding at the end the following new subparagraph: (D) One-time adjustment After applying subparagraphs (A), (B), and (C), the applicable percentage shall be increased by 16 percent. . (c) Effective dates (1) Increase of State housing credit ceiling The amendments made by subsection (a) shall apply to calendar years after 2018. (2) Increase in credit percentage The amendments made by subsection (b) shall apply to buildings with respect to which housing credit dollar amounts are allocated after December 31, 2018.