Join us for a call this Friday, April 28, at 2 p.m. EDT, to discuss Housing Credit legislation and the latest tax reform developments.
Friday, April 28 @ 2:00 p.m. EDT
Participant code: 677-49-533#
Bipartisan Support for Affordable Housing Credit Improvement Act Grows
In March, the Affordable Housing Credit Improvement Act was introduced in the Senate (S. 548) by Senator Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT), and in the House (H.R. 1661) by Representative Pat Tiberi (R-OH-12) and House Ways and Means Committee Ranking Member Richard Neal (D-MA-1). Since their introduction, both bills have continued to gain bipartisan support among key members of Congress.
In the past month, two more Senators – Bernie Sanders (I-VT) and Maggie Hassan (D-NH) – have signed onto S. 548, bringing the total to 17 co-sponsors. The House legislation now has 30 co-sponsors, including nearly half of the Ways and Means Committee. The most recent additions are Representatives Jackie Walorski (R-IN-2), Ted Budd (R-NC-13), John Larson (D-CT-1), Luke Messer (R-IN-6), Vicente Gonzalez (D-TX-15), George Holding (R-NC-2), Jose Serrano (D-NY-15), Salud Carbajal (D-CA-24), and Jared Polis (D-CO-2).
More than 2,000 organizations and businesses signed onto letters in support of the Senate and House versions of the legislation, and we encourage all ACTION Campaign members to reach out to your members of Congress to support these bills if they have not already.
Visit the ACTION Campaign’s Advocacy Toolkit for bill summaries, bill text, "Dear Colleague" letters, sample letters to members of Congress requesting co-sponsorship, and more.
Congress and Administration Vow to Move Ahead on Tax Reform
Congress has returned from its April recess to a full legislative agenda. The most pressing concern is continuing to fund the government before the current continuing resolution expires on April 28, after which Congress is expected to turn to tax reform. House Ways and Means Committee Chairman Kevin Brady (R-TX-8) has indicated that he plans to hold a series of hearings on tax reform in the spring, though the timing and topics of the hearings is not yet known.
The Senate does not appear to be planning to release its own tax reform proposal in the near term, but several Republican Senators have publicly criticized key elements of the House’s plan, suggesting that the proposals outlined in the House’s tax reform blueprint may face insurmountable obstacles advancing through the Senate without significant changes.
President Trump has also indicated that he will announce a tax reform proposal this Wednesday that will include significant tax cuts for businesses. During the campaign, President Trump proposed cutting the corporate tax rate from 35 to15 percent.
Proposals Emerge to Offset Impacts of Lower Corporate Tax Rate on the Housing Credit
While the parameters of tax legislation may not be finalized for several months, a new blog post from affordable housing accounting firm Novogradac & Company outlines the potential impacts of a lower corporate tax rate on the Housing Credit, and recommends adjustments to ensure that the Housing Credit’s production ability is not harmed in tax reform. Novogradac & Co. found that depending on how tax reform is written and enacted, the amount of Housing Credit equity raised annually could be reduced by as much as 17 percent, a loss of as much as $2.2 billion and 16,000 affordable homes per year. Potential offsets include increasing the total Housing Credit authority and modifying the credit percentage formula.
Poll Shows Vast Majority of Voters Support Housing Credit
A new poll from Harvard’s Center for American Political Studies (CAPS) and Harris Insights & Analytics shows that 74 percent of voters are in favor of keeping the Housing Credit in tax reform – giving it the most support of any corporate tax deduction or credit among those polled. Read more on the ACTION Campaign blog.
New Video Features Housing Credit’s Impact and Bipartisan Support
“Strengthen What’s Working,” a new video from the Affordable Housing Tax Credit Coalition, explores the Housing Credit’s role as America’s primary tool for creating and preserving affordable rental homes—and why it should be strengthened and expanded as a proven community and economic development tool.
The video features Family Scholar House in Louisville, Kentucky, which provides homes for children with parents pursuing higher education; Hope Manor II in Chicago, which serves veterans; and Columbia Senior Residences in Decatur, Georgia, outside Atlanta. It also includes testimony from HUD Secretary Ben Carson and a statement from Senate Banking Committee Chairman Mike Crapo (R-ID).