Senate Passes Tax Extenders Legislation
On Tuesday, December 16, the Senate passed the Tax Increase Prevention Act (H.R. 5771) by a recorded vote of 76 to 16. This bill will extend certain provisions of the U.S. Tax Code which expired at the end of 2013, although these extensions are temporary and only apply till the end of 2014.
Included in H.R. 5771 is an extension of the 9 percent minimum credit rate for the Low-Income Housing Tax Credit (LIHTC). However, this bill does not include the establishment of the 4 percent minimum credit rate, which Senate Finance Committee Chairman Ron Wyden (D-OR) included in his extender bill, the EXPIRE Act (S.2260). The EXPIRE Act was previously the leading “tax extenders” bill, but it failed to reach the Senate floor for votes. While NAHMA is glad to see an extension for the 9 percent minimum credit rate in H.R. 5771, we are disappointed that the bill does not include the 4 percent credit.
In a statement on the chamber floor, Senator Wyden was critical of this deal: “With this stop-and-go tax extender bill, Congress is turning in its tax homework eleven months late and expecting to earn full credit. This package of incentives – which applies only to 2014 – will last two more weeks before families and businesses will be thrown back into the dark about what taxes they owe… That’s not nearly enough time for the important provisions in this package to catalyze growth among businesses or to support families in a meaningful way.”
Despite criticism from Wyden and other Senatorial leaders, The President has indicated he will sign the bill.
Please click here to read Senator Wyden’s remarks