Today (Friday, May 28) the U.S. House of Representatives passed H.R. 4213, the American Jobs and Closing Tax Loopholes Act (Tax Extenders Legislation). The package of tax extender provisions would extend for one year the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program, extend for one year the New Markets Tax Credit (NMTC) program, and allow the NMTC to offset the alternative minimum tax with respect to qualified investments made between March 15, 2010 and January 1, 2012. The bill would also extend the Build America Bonds program, fund the National Housing Trust Fund (NHTF) and extend by two years the placed-in-service date for Gulf Opportunity (GO) Zone LIHTCs. The legislation also features a provision that would tax carried interest as ordinary income instead of capital gains. If enacted, this new tax will phase in over several years and would go into effect December 31.
The legislation still must be voted on by the United States Senate, which has adjourned for the Memorial Day recess and is expected to take up the measure and amend it further when it returns on June 7. The primary provisions still being negotiated pertain to Medicare payments and unemployment benefits. Click here to read more…
