House Releases Tax Reform Blueprint, Silent on LIHTC

This past Friday, the House Tax Reform Task Force, led by House Ways and Means Chairman Kevin Brady, released its tax reform blueprint. The blueprint contains no legislative language, but is an outline for how the House of Representatives plans to continue working on tax reform into 2017.

The stated goals are to fuel job creation, make the tax code simpler and fairer, and improve IRS’ customer service. The blueprint also outline the desire to lower the top corporate tax rate from 35 to 20 percent. In order to do this, the plan would eliminate many corporate tax expenditures. The Research and Development credit is the only expressly retained credit, while several credits are expressly offered for repeal. The plan is silent on the LIHTC as well as all tax exempt bonds (including multifamily housing bonds). The Ways and Means Committee website has further information.

“It is very concerning that this blueprint does not express the need to maintain economic and community development initiatives like the Low-Income Housing Tax Credit, Historic Rehabilitation Tax Credit, and New Markets Tax Credit,” said Thom Amdur, Executive Director of NH&RA. “We encourage our members to reach out to their elected officials to show them how important these programs are to communities across the country.”

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“Without the Housing Credit, there would be virtually no new affordable housing development at a time when our nation’s affordable housing needs have reached an all-time high,” The ACTION Campaign wrote in an email. “[We] intend to submit comments to the Ways and Means Committee to express this position.”

Led by Ways & Means Committee Chairman Kevin Brady (R-TX), the House Tax Reform Task Force is one of six tax forces enlisted in developing the House Republican’s policy agenda under House Speaker Paul Ryan’s leadership. The House Ways & Means Committee intends to develop legislative language within the framework before January 20, 2017, when the next president will be inaugurated.