On Wednesday, April 15, 2015, the A.C.T.I.O.N. Campaign submitted the below-linked comments to the Senate Finance Committee’s Community Development and Infrastructure Tax Reform Working Group. The Working Group has jurisdiction over the Housing Credit program for purposes of making tax reform recommendations to the full Senate Finance Committee. AHTCC has been working closely with both the Working Group and the A.C.T.I.O.N. Campaign to ensure the Housing Credit program isn’t harmed through tax reform efforts.
Specifically, the A.C.T.I.O.N. Campaign’s comments urge the Working Group to:
- Protect the existing Housing Credit and Housing Bond Resources:
- Preserve the 9 percent and 4 percent Housing Credits,
- Retain the multifamily housing private activity bonds tax exemption,
- Maintain the current 27.5 year depreciation period for Housing Credit properties, and
- Make adjustments to offset the impact a lower corporate tax rate would have on the Housing Credit should Congress reduce the corporate tax rate.
- Expand Housing Credit Resources by an amount that makes significant progress towards meeting the affordable housing needs of low-income families.
- Provide states with flexibility to maximize Housing Credit resources:
- Enact permanent minimum Housing Credit rates, and
- Allow broader income mixing within developments.