Today, the House Ways and Means Committee passed the tax package that was introduced earlier this week, the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024), which contains key Housing Credit provisions, on a 40-3 vote. This legislation was negotiated on a bipartisan basis by Congress’ two lead tax writers: Ways and Means Chair Jason Smith (R-MO-08) and Senate Finance Committee Chair (and AHCIA Senate lead) Ron Wyden (D-OR). The Housing Credit provisions include a temporary restoration of the 12.5 percent increase to the 9 Percent Credit from 2023 through 2025 that expired in 2021, and a temporary lowering of the Private Activity Bond (PAB) threshold test from 50 percent to 30 percent for PAB-financed properties with bonds issued before 2026. These two provisions are estimated to finance the construction of over 200,000 new affordable rental homes nationwide; generate over $34 billion in wages and business income; create over 304,000 jobs; and generate almost $12 billion in federal, state, and local tax revenue. ACTION is very pleased that these two major provisions to address the shortage of affordable housing were included. An unrelated provision in the bill, which would temporarily restore 100 percent bonus depreciation for certain qualified properties, also would be beneficial to Housing Credit investors if the legislation is enacted.
During the markup, AHCIA House lead Rep. Darin LaHood (R-IL-16) submitted a letter into the Congressional Record signed by 88 national and statewide affordable housing and community development groups, many of which are ACTION members, which was sent to Congress in advance of the markup (since sending the letter, an additional organization has signed on, bringing the total to 89 organizations). Throughout the markup, committee members of both parties expressed their support for the bill’s Housing Credit provisions. Several members of the committee lamented the fact that the agreement did not specifically address other Housing Credit program changes in AHCIA related to serving extremely low-income households and Tribal communities, as well as allowing unhoused individuals and veterans to access Housing Credit homes if they are students. The AHCIA includes all of these, and ACTION will continue to press for their enactment in future bills when there is an opportunity to do so.
The fact that this bill would expand the reach of the Housing Credit and its near-unanimous support in the committee markup is largely due to the successful advocacy work being done by ACTION members and the leadership of our champions on the Hill. However, this bill’s enactment is far from guaranteed.
There are significant procedural challenges ahead as Chairs Smith and Wyden seek to usher the bill through the process of floor action in both chambers. We need you to keep up your advocacy by continuing to stress the need for AHCIA cosponsors to do all they can to support enactment! For more information, check out ACTION’s advocacy resources. If you have any questions or need help contacting your Senators and Representatives, please don’t hesitate to email us.
