2,000 organizations and businesses are calling on the incoming Congress and Administration to prioritize the Low-Income Housing Tax Credit (Housing Credit) as they consider reforms to the nation’s tax code and investments in the nation’s infrastructure. The letter submitted on behalf of the ACTION Campaign urges policymakers to: 1) ensure that the Housing Credit and Housing Bonds are held up as positive examples of the power of the tax code to improve communities by maintaining their viability under tax reform; and 2) expand and strengthen the Housing Credit to increase the availability of safe and affordable housing and revitalize local economies.
The House is currently working to draft comprehensive tax reform legislation based on the principles outlined in Speaker Paul Ryan’s A Better Way tax reform blueprint, released this summer. The blueprint indicates that it would "generally eliminate special-interest deductions and credits in favor of providing lower tax rates for all businesses and eliminating taxes on business investment," and does not specify how it would treat the Housing Credit and Housing Bonds. Since the release of the blueprint, the Ways and Means Committee has been collecting feedback. It could release legislation as soon as late January.
The Senate is expected to introduce its own version of comprehensive tax reform in 2017 , though it is not as far along in the process as the House.
The ACTION Campaign’s letter sends a powerful message to Congress and the next Administration demonstrating the broad support at the national, state and local level for protecting and strengthening the Housing Credit and Housing Bonds.
The letter also urges the enactment of the Affordable Housing Credit Improvement Act, which was introduced by Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) this summer and has strong and growing bipartisan support. Sixteen Senators have now signed onto support at least one of the two versions of the legislation – S. 2962 and S. 3237 – with Senators Dean Heller (R-NV), Cory Booker (D-NJ) and Brian Schatz (D-HI) joining this week.