Administration and Congressional Republican leadership recently released their “Unified Framework for Fixing Our Broken Tax Code,” which proposes to lower the top corporate tax rate to 20 percent, eliminate most corporate tax expenditures in order to help achieve the lower rate, and make numerous other changes to the existing tax system.
The Low-Income Housing Tax Credit (Housing Credit) is one of only two corporate tax expenditures that the framework explicitly proposes to retain, noting that it is a tax incentive that 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 our understanding 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. Read more about the framework and its impact on affordable housing.
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, and the Senate will follow shortly after. The coming weeks and months, as congressional tax-writers finalize these details, will be critical for the Housing Credit and Housing Bonds.
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, and urges them 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
- Make adjustments to the Housing Credit to ensure its production potential is not negatively impacted by other changes in tax reform.
All existing ACTION Campaign members will be included in the letter, so if you are already an ACTION Campaign member you do NOT need to sign on. However, we encourage 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 at firstname.lastname@example.org before the October 13 deadline.