Senate Finance Committee Chairman Max Baucus (D-MT) has been nominated to Ambassador of China, which will significantly slow the momentum for tax reform in his committee.
At this time it is unknown what Senator Ron Wyden (D-OR), the presumptive new chairman of the committee, will pursue in terms of tax reform or tax legislation, if anything. In the House, Ways and Means Chairman Dave Camp (R-MI-4th) faces reluctance among House leadership to continue pursuing the potentially divisive issue of tax reform, though it is still possible that he will release draft legislation this spring.
Though the likelihood of tax reform is largely diminished, any draft legislation that emerges out of any committee can still pose a threat insofar as it is used as a template for future tax reform efforts.
Meanwhile, the minimum 9% Housing Credit rate expired at the end of 2013 as a result of congressional inaction on the dozens of expiring tax provisions known as “tax extenders.” At this time it is unclear whether there will be a vehicle for the passage of tax extenders prior to the lame duck session at the end of 2014, but the waning prospects for a full tax reform overhaul may provide an opportunity to advance tax extenders independently.
The ACTION Campaign works to protect the Low Income Housing Tax Credit.
Click here for more information about the ACTION Campaign.