NAHMAnalysis that details several pieces of legislation relating to the Low-Income Housing Tax Credit (LIHTC) is now available at NAHMA.org.
NAHMA has been advocating for permanent retention of the 9 percent minimum credit rate for new housing projects and for the establishment of a 4 percent minimum rate for acquiring existing housing for rehabilitation under any comprehensive tax reform discussion. Several bills have been introduced in both the Senate and the House that would achieve this goal, yet none have so far been passed into law. Other legislation has been proposed that would negatively alter the LIHTC, such as Representative Dave Camps draft tax reform package that would maintain the floating rate system and eliminate the 30 percent present value credit for acquisition.
In general, comprehensive tax reform seems distant as lawmakers continue to have impasses over federal spending. Still, legislation introduced by Senator Maria Cantwell (S. 1442) and Representative Pat Tiberi (H.R. 2260) shows that there is some bipartisan support to make the minimum credit rates permanent.
To read this NAHMAnalysis, please click here