Senate Finance Committee Approves Extenders Bill That Includes 9% and 4% Housing Credit Rate Floors
On April 3, the Senate Finance Committee approved and reported legislation, the Expiring Provisions Improvement, Reform, and Efficiency (EXPIRE) Act, authored by Chairman Ron Wyden (D-OR) and Ranking Member Orrin Hatch (R-UT) to extend for two years many expiring tax provisions, including a provision extending the minimum 9 percent Housing Credit rate for allocations made before January 1, 2016.
The Chairman’s Mark also included an amendment proposed by Committee members Maria Cantwell (D-WA) and Pat Roberts (R-KS) establishing a fixed 4 percent Credit rate floor for acquisition of existing affordable housing, also for allocations made before January 1, 2016.
The Committee-reported bill also extends for two years the New Markets Tax Credit, special treatment for the basic housing allowance for military personnel in Housing Credit apartments, favorable tax treatment of mortgage debt relief, and the deduction for mortgage insurance payments.
The Committee reported the bill by voice vote, with only one discernible no vote. Based on this strong bipartisan Committee support, the outlook for Senate consideration of the bill relatively soon seems favorable. The exact timing, however, is uncertain.
In the House of Representatives, Ways and Means Committee Chairman Dave Camp (R-MI) recently said the Committee will begin this month to examine expiring tax provisions to determine which should be made permanent. Though his tax reform discussion draft, released in February, would continue the floating 9 percent Housing Credit rate, NCSHA and other stakeholders are encouraging the Committee to extend the 9 percent Credit rate floor or make it permanent, either as part of extenders legislation or tax reform.