The Treasury have made an amendment to the Residential Property Developer Tax to exclude housing associations and local authorities.
Also known as cladding tax or developer levy, the Residential Property Developer Tax is due to be part of the Building Safety Bill.
Registered social landlords will no longer be part of the plans, after intense lobbying by the National Housing Federation.
The plans were first announced by former Housing Secretary, Robert Jenrick, as a way to pay for the remediation of buildings over 18m.
The tax is hoping to raise £2bn to fund remediation.
You can see a copy of the draft legislation here.