Housing Tax Credit Bill Introduced

By
2 min read

On May 22, U.S. Reps. Pat Tiberi (R-Ohio) and Richard Neal (D-Mass.), of the House Ways and Means Committee, introduced H.R. 4717, a bill that would renew and make permanent a minimum 9% rate for the 70% present value federal low-income housing tax credit. The minimum 9% rate lapsed December 31, 2013.

The bill, which has been referred to the Ways and Means Committee, would also establish a minimum 4% rate for the 30% present value credit for property acquisition costs not financed by tax-exempt bonds.

As of mid-June, the bill had 37 co-sponsors.

“I’ve seen first-hand the benefits of the low-income housing tax credit during my visits to low-income housing developments in my district,” Rep. Tiberi said prior to the bill’s introduction. “It’s an effective, successful program, and by making a permanent floor on the credit rate, we’re creating certainty for developers to create jobs and increase housing availability for more low-income families, veterans, seniors and individuals living with disabilities.”

A companion bill (S. 1442) was introduced in the Senate in August 2013 by Finance Committee member Maria Cantwell (D-Wash.). The measure currently has 26 co-sponsors.

On April 28, the Senate Finance Committee approved tax extenders legislation (S. 2260) that would renew the minimum 9% rate for allocations made before January 1, 2016. It would also establish a minimum 4% rate for non-bond financed acquisition costs. The minimum 4% rate would apply to pre-2016 tax credit allocations for buildings placed in service after the date of the bill’s enactment. The full Senate hasn’t acted on the measure so far.