Representatives Mike Carey (R-OH) and Jimmy Panetta (D-CA) recently introduced the Affordable Housing Credit Carryback Act (H.R. 9012). This legislation adopts an AHTCC-backed proposal that would establish a five-year carryback period for the Housing Credit to support a robust Housing Credit investment market. Enacting a longer carryback period would provide additional certainty and capacity to invest in the Housing Credit by allowing investors to apply credits against prior-year tax liabilities within an extended 5-year window.
“Affordable housing projects depend on stable investment, but the current one-year carryback limit puts the Low-Income Housing Tax Credit at a disadvantage compared to other credits in the tax code,” said Rep. Carey. “Expanding the [Housing Credit] carryback period to five years will provide greater certainty for investors, strengthen the housing credit market, and help support the development of more affordable housing across the country. I want to thank Congressman Panetta for co-leading this legislation that recognizes the importance of keeping affordable housing projects moving forward for working families.”
“The lack of affordable housing continues to be one of the biggest issues for those who want to attain a cornerstone of the American Dream,” said Rep. Panetta. “Although there is no silver bullet to solve our housing crisis, Congress can play its part by adjusting the tax code to enhance opportunities under the Low-Income Housing Tax Credit. Our bipartisan legislation would do exactly that by simply extending the carryback limit on LIHTC from one year to five years, which would increase stable financing, investor certainty, and flexibility around LIHTC housing projects. Despite the divisive politics coming out of Washington these days, Rep. Carey and I are ensuring that Congress continues to do its job with commonsense bipartisan solutions that can help increase affordable housing and ensure that hardworking Americans can fulfill their dreams.”
“The Affordable Housing Tax Credit Coalition strongly supports this effort to increase investment in the Low-Income Housing Tax Credit, our nation’s primary tool for financing affordable housing,” said Affordable Housing Tax Credit Coalition CEO Emily Cadik. “Increasing the carryback period for the Housing Credit will provide investors with the flexibility to more fully leverage the recent historic expansion of the program. We applaud Congressmen Carey and Panetta for their leadership on addressing our nation’s affordability crisis.”
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