Expand Low Income Housing Tax Credit and Make New Markets Tax Credit Permanent
Action by the U.S. Senate approving a fiscal year (FY)18 federal budget resolution propels tax reform to front and center on the national agenda. A vote in the U.S. House appears to be imminent. The powerful U.S. House Ways and Means Committee is the current epicenter of tax reform discussions.
The tax reform framework released a few weeks ago by Congressional leaders and the Administration retains the Low Income Housing Tax Credit.
But CSH has highlighted some concrete concerns and unanswered questions in the proposed framework:
- Where will multifamily housing bonds fit in? Multifamily housing bonds now finance about 40% of Housing Credit-created homes.
- Is the repeal of the New Markets Tax Credit program part of an elimination of “other business credits” advocated in the proposed framework?
- Will the new measure of inflation conceptualized in the framework negatively impact the Housing Credit, New Markets Tax Credit and bonds?
- How would a corporate tax rate of 20% effect the incentives that are creating affordable housing for millions of Americans?
US Senator Cory Booker is a co-sponsor of 2.548.
As we await Congressional action, please help persuade Members of the House and Senate to cosponsor S.548 and H.R.1098/ S.384, ensuring the Low Income Housing Tax Credit, housing bonds and New Market Tax Credit are preserved and expanded in tax reform.
Please email or call your:
- Representative in the U.S. House strongly urging them to include H.R.1098 in any tax reform package placed before the Congress. Click here for the contact information for New Jersey’s House delegation.
- U.S. Senators Bob Menendez and Cory Booker, strongly urging them to include S.548 and S.384 in any tax reform package placed before the Congress. Click here for the contact information for New Jersey’s House delegation.
The ACTION Campaign reports that the Housing Credit was one of only two corporate tax expenditures that the Administration and Congressional Republican leadership explicitly proposed to retain in their tax reform framework, noting that it is a tax incentive that has “proven to be effective in promoting policy goals important in the American economy.”
The coming weeks and months, as congressional tax-writers finalize these details, will be critical for the Housing Credit and Housing Bonds.