Congress Aims to Move Quickly on Comprehensive Tax Reform

Comprehensive tax reform is a top priority for the 115th Congress and incoming Administration, and the House is aiming to move quickly to finalize its proposal. In December, Republican members of the House Ways and Means Committee held a meeting to discuss specifics for translating the House’s tax reform blueprint, released last summer, into legislation. At the December meeting of Republican Ways and Means Committee members, key Republicans on the committee voiced support for the Low-Income Housing Tax Credit, suggesting the Housing Credit remains in a strong position as the committee works to translate their tax reform proposal into legislation. However, it remains to be seen whether the New Markets Tax Credit and multifamily Housing Bonds are also likely to be retained in a reformed tax code. The Ways and Means Committee is currently resolving outstanding issues related to tax reform through a working group process and will release a discussion draft shortly after, followed by a period for public comment, before holding a mark-up.

Prior to the December meeting among Ways and Means Republicans, the ACTION Campaign sent a letter to Congress with 2,000 signatories urging the prioritization of the Housing Credit and Housing Bonds in tax reform. The New Markets Tax Credit Coalition is also circulating a sign-on letter urging Congress to permanently extend the New Markets Tax Credit; the letter will accept new signatures through January 25.

The Senate and the White House will likely release their own comprehensive tax reform proposals later this spring or this summer. Congress may also consider infrastructure legislation, which the Trump Administration has indicated is a top priority, and which could include provisions related to affordable housing and community development.

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