March 01, 2010
Senate Seal.jpg

On February 24, the Senate passed Senate Majority Leader Harry Reid’s (D-NV) jobs bill—the first of what he says may be several jobs bills this year.  Reid’s bill establishes a new jobs tax credit, expands the Build America Bonds program to include several existing tax credit bond programs, extends the highway trust fund and related construction programs, and increases expense deductions for small businesses.  Reid’s bill does not extend the Housing Credit Exchange program and several expiring tax programs. 

The House may also act on the bill soon.  House leaders have not said whether they plan to seek changes in the Senate bill, despite the fact that the House passed a much larger jobs bill in December.  For example, the House bill included $1 billion for the Housing Trust Fund that is not included in the Senate bill.  The House also passed in December a separate bill extending several expiring tax provisions, including the Housing Credit Exchange program.  

Reid says he expects the Senate to consider the extenders bill during the week of March 1-5.  This bill, which will include the Exchange program extension, will likely be open to amendment during Senate consideration. 

House and Senate staff say it is not likely that the House or Senate will add other Housing Bond and Credit provisions to the Reid bill or the extenders bill.  Staff say they are considering NCSHA’s other Housing Bond and Credit priorities for possible inclusion in future jobs bills leaders hope to advance later this year.  However, any or all of these provisions could still be included in one bill.  The changes tax-writers are considering include expanding the Exchange program to include 4 percent and Disaster Credits, allowing investors to “carry back” Credit investments for five years, increasing investment incentives for community banks and closely held corporations, extending the availability of the $11 billion in Housing Bond authority enacted in the Housing and Economic Recovery Act (HERA), and maintaining HERA’s two-year 10 percent Housing Credit volume cap increase for an additional year in 2010.