On Wednesday, December 3, 2014, the House of Representatives passed a one-year tax extender bill that will shore up two key housing and community development programs. The Tax Increase Prevention Act of 2014 (H.R. 5771) (the “Act”), passed 378 to 46, extends a favorable provision in the Low-Income Housing Tax Credit (“LIHTC”) program, by providing that the nine percent housing credit floor will be applicable for LIHTC allocations made prior to January 1, 2015. Further, the Act funds an additional $3.5 billion of New Markets Tax Credit authority for the calendar year 2014 round, the competitive applications for which were due to the CDFI Fund on October 1, 2014. While the extender package does not offer permanent support for these programs, it is an encouraging step for the myriad of stakeholders that rely on tax credit financing.
As reported by the National Council of State Housing Agencies, the Senate and President are likely to approve these measures by the end of the calendar year. For more on the Tax Increase Prevention Act, please see the House of Representatives webpage.
