Clyburn Introduces Bill to Restore Housing Credit Buying Power

On July 26, House Assistant Democratic Leader James Clyburn (D-SC) introduced the Restoring Tax Credits for Affordable Housing Act (H.R. 6542). Clyburn’s bill would increase the state Housing Credit ceiling to $2.90 per capita and the small-state minimum to $3.365 million, both roughly 20 percent increases. The bill would also increase the Housing Credit discount rate by 1.5 percentage points and the Housing Credit applicable percentage by 16 percent. The bill’s changes would be effective for calendar years after 2018. Clyburn’s press release on the bill projects that the bill would result in the production of 235,000 additional Housing Credit units over the next 10 years. Experts estimate that the 2017 tax reform law, by lowering the corporate tax rate from 35 percent to 21 percent and changing the inflation factor for future increases in authority, will result in the loss of approximately 235,000 units over 10 years. Thus, Clyburn’s bill would effectively make up for the loss in production. This week, Clyburn also cosponsored H.R. 1661, the Affordable Housing Credit Improvement Act. Ways and Means Committee member Suzan DelBene (D-WA) cosponsored Clyburn’s new bill.

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