House Ways & Means Committee Set to Release Tax Reform Proposal
According to several news reports, the House of Representatives’ Ways and Means Committee is preparing to release a comprehensive tax reform package next week. The Ways and Means Committee has outlined two major goals for tax reform: one is to make the tax code simpler and fairer for families and employers, and another goal is to strengthen the US economy. So far the Committee has conducted more than 30 separate hearings on tax reform and released three discussion drafts on simplifying taxes for small businesses, companies operating overseas and, better oversight of Wall Street financial institutions.
However, no information has been released as to any reforms on the low-income housing tax credit (LIHTC). NAHMA has been concerned that Congress could eliminate the LIHTC or make changes to state allocations through comprehensive tax reform. Under the LIHTC program, states are authorized to issue federal tax credits for the acquisition, rehabilitation, or new construction of affordable rental housing. The credits can be used by property owners to offset taxes on other income, and they may be sold to outside investors to raise initial development funds for a project.
The Senate Financial Services Committee, the Ways and Means Committee counterpart, has also made attempts at tax reform but it has yet to release any specific legislation on a comprehensive overhaul. According to the Ways and Means Committee, Senators on the Financial Services Committee have been involved in the discussion and efforts towards reform have been bipartisan.
NAHMA has urged Congress to reject any proposal that could eliminate the LIHTC program and has advocated instead for LIHTC reforms which will continue and enhance its use as a preservation tool. We will follow this issue closely and alert members of any changes to the LIHTC. The likelihood of a full elimination to the LIHTC is slim – it is a successful program with industry support and the Senate would most likely be opposed to its removal from US tax code. However, NAHMA still takes the possibility seriously and we are proactively advocating for its retention in tax reform.
To learn more about the House Ways and Means Committees’ tax reform status, please follow
this link.
