The Affordable Rental Housing A Call to Invest in Our Neighborhoods (A.C.T.I.O.N.) Campaign recently sent out this update as the second session of the 112th Congress begins. The Campaign and its membership will be focused on extending the payroll tax holiday, unemployment benefits, and Medicare reimbursement rates provisions before they expire on February 29, 2012. House Ways and Means Committee Chairman Dave Camp (R-MI-4) will be leading a conference committee tasked with negotiating a full-year extension of these provisions and others.
The Broad Tax Extenders Group, a business-led coalition, is urging Congress to also consider providing extensions for the more than five dozen tax provisions, which expired in 2011. It is unclear whether these extension measures will be included as part of the broader negotiations, due to a lack of agreement on whether the entire set of provisions should be extended and how to pay for the $35 billion cost associated with doing so.
Whether these expired provisions are included in the potential full-year extension legislation remains critical, as A.C.T.I.O.N. coalition members and Sen. Maria Cantwell (D-WA) continue to ask that a 9% minimum rate be applicable for all new construction and substantial rehabilitation Housing Credit allocations made before the end of 2013, as part of the tax extension legislation. Currently the temporary Housing and Economic Recovery Act of 2008 (HERA) provision can only be applied to projects placed in service through 2013.
The goal of the A.C.T.I.O.N. proposal legislation (H.R. 3661, S. 1989) is to make the temporary 9% minimum rate permanent and enact a 4% minimum rate for acquisition Housing Credits, thereby ensuring that many affordable housing developments receive the private equity capital needed for financial feasibility. Please continue to contact your Members of Congress – especially those serving on the House Ways and Means Committee and Senate Finance Committee – and urge them to support and cosponsor the A.C.T.I.O.N. proposal legislation (H.R. 3661, S. 1989).
Visit the updated A.C.T.I.O.N. Advocacy Toolkit to view the A.C.T.I.O.N. proposal legislation, find the Housing Credit fact sheet for your state – click here to view the NJ Fact Sheet – and view tips on contacting your representatives, and more!
Looking ahead, Sen. Rob Portman (R-OH) is expected to release a corporate tax reform proposal in the coming weeks. It is anticipated that it will promote reducing the corporate rate to 25% through the elimination and reduction of corporate tax expenditure programs – including, potentially, the Housing Credit. More details will be made available once the proposal is released.
Click here to learn more about the A.C.T.I.O.N. Campaign.
Monarch Housing Associates is a proud member of the A.C.T.I.O.N. Campaign. Click here to join the Campaign.