Legislative Update: A Busy Time for Tax Credit Legislation
The following was distributed as part of the Affordable Housing News & Views - Spring 2014 newsletter.
by Bob Moss, CohnReznick Principal and National Director of Governmental Affairs
Just when the tax credit community thought it had momentum in the Senate for potential Extenders Action with a 96-3 bi-partisan vote to proceed in early May, any action on that front will be delayed. This week, Senate Majority Leader Harry Reid has confirmed that legislation to renew a package of expired tax breaks is dead in the Senate until after the November mid-term election.
The “Expire Act” would have provided a technical fix to the credit floor for the LIHTC and New Markets Tax Credit extension for 2014 and 2015. However, opposing views have slowed Congress’ progress: The reluctance by Majority Leader Reid to accept any amendments to the Act, compounded by the Senate Republicans’ insistence about inserting a repeal of the medical device tax has led to a stalemate at this juncture.
Senate Finance Committee Chairman Ron Wyden and ranking member Orrin Hatch worked together to limit the amount of amendments by both sides to further the bi-partisan nature of the Expire Act when it was introduced out of committee with an overwhelming voice vote.
Prior to Memorial Day weekend, the LIHTC community received great news from the Ways and Means Committee with the introduction of Tiberi-Neal HR 4717. The bill would establish a fixed 9% rate for new rental construction property and a fixed 4% rate for existing property. In a joint press release, Reps. Tiberi and Neal noted that the legislation will remove uncertainty and boost affordable housing production. The industry was contacted to ensure support for the bill by Committee Members in early May, and the industry responded immediately. Thank you to all of you that reached out to developer constituents in key states.
Bob Moss is a CohnReznick Principal and National Director of Governmental Affairs. Bob leads the Firm’s federal and state government relations efforts, particularly in the area of affordable housing. He can be reached at firstname.lastname@example.org or 617-648-1406. For more legislative insight from Bob, visit our Capitol Connection webpage.
Follow Bob: @BobMoss42
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