The ACTION Campaign sent a letter to Congress today on behalf of more than 2,150 national, state and local organizations and businesses thanking Republican leadership for recognizing the value of the Low-Income Housing Tax Credit (Housing Credit) in the “Unified Framework for Fixing Our Broken Tax Code,” and urging lawmakers 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.
The Housing Credit was one of only two corporate tax expenditures that the Administration and Congressional Republican leadership explicitly proposed to retained 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.” However, the framework was silent on multifamily Housing Bonds and private activity bonds generally. 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, but now is a critical time to reinforce the importance of doing so.
Now that the House and Senate have passed their respective budget resolutions that lay the groundwork for tax reform, the House is expected to vote on the Senate's version next week, after which the House and Senate tax-writing committees will move quickly to try to finalize tax reform before the end of the year. The House Ways and Means Committee is aiming to hold a markup of a tax bill in the next few weeks, with the Senate to follow soon after. The coming weeks and months, as congressional tax-writers finalize these details, will be critical for the Housing Credit and Housing Bonds.
We thank all new organizations and businesses for joining the ACTION Campaign and urge all ACTION members to visit our Advocacy Toolkit to find resources to advocate for the Housing Credit and Housing Bonds.