This bill, titled the "Transit Oriented Development Act of 2026," aims to modify the Low-Income Housing Tax Credit (LIHTC) to encourage affordable housing development near public transit. It proposes increasing the eligible basis for new buildings or rehabilitation expenditures for existing buildings by 150 percent if they are located in designated transit-oriented development areas. These areas must be within half a mile of a rail, bus, harbor, or waterway station and zoned for high-density, with a 155 percent increase applicable to projects in Hawaii, Alaska, or U.S. territories. Furthermore, the legislation directs the Secretary of Housing and Urban Development (HUD) to conduct a comprehensive study on cost-of-living differences across the United States. This study will consider geographic location and proximity to transit, with a report due to Congress within one year. The report must include recommendations for formulas to adjust annual state allocations of LIHTC, ensuring they better reflect these identified cost-of-living variations.