Enact the Affordable Housing Credit Improvement Act and Ensure the. Production Potential of the Housing Credit
Administration and Congressional Republican leadership recently released their “Unified Framework for Fixing Our Broken Tax Code” which currently protects the hosing credit.
The framework proposes to lower the top corporate tax rate to 20 percent, eliminate most corporate tax expenditures to help achieve the lower rate, and make numerous other changes to the existing tax system.
The ACTION Campaign is sending a letter to Congress and the Administration that thanks Republican congressional and administration leadership for recognizing the value of the Housing Credit. The letter urges congressional and administrative leadership to not only preserve the credit, but to include the following provisions to strengthen and modernize our affordable housing delivery system:
- Retain the tax exemption on multifamily Housing Bonds,
- Enact the Affordable Housing Credit Improvement Act, and
- Adjust the Housing Credit to ensure its production potential is not negatively impacted by other changes in tax reform.
The Low-Income Housing Tax Credit (Housing Credit) is one of only two corporate tax expenditures that the framework explicitly proposes to retain. The framework notes that tax incentive has “proven to be effective in promoting policy goals important in the American economy.”
While the framework does not speak to multifamily Housing Bonds, it is the understanding of the ACTION Campaign from various reports that the authors of the framework have a general agreement to fully retain the tax-exemption on municipal bonds, which include Housing Bonds.
Now that the framework has been released, the House and Senate tax-writing committees are negotiating details and drafting tax legislation. The House Ways and Means Committee is expected to hold a markup of a tax bill as early as the week of October 23.
The Senate will follow with a markup of a bill shortly after. The coming weeks and months, as congressional tax-writers finalize these details, will be critical for the Housing Credit and Housing Bonds.
All existing ACTION Campaign members will be included in the letter. If you are already an ACTION Campaign member you do NOT need to sign on. However, the ACTION campaign encourages you to share the letter with your networks to help us show broad support for the Housing Credit.
If you have any questions or want to remove your organization from the letter, contact Emily Cadik before the October 13 deadline.
The ACTION Campaign is a coalition of over 2,000 national, state, and local organizations and businesses working to address our nation’s severe shortage of affordable rental housing by protecting, expanding and strengthening the Low-Income Housing Tax Credit.