House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Roy Wyden (D-OR) announced a tax agreement, which includes LIHTC provisions to restore the 12.5 percent increase for nine percent LIHTCs for 2023-2025 and lower the bond financed-by test to 30 percent for allocation made in 2024 and 2025. More details can be found in the section-by-section summary.
The work of advocates is not done yet. This bill must still find a legislative vehicle and pass both chambers. The House is considering voting on the tax package later this week under a suspension of the rules, which would require a two-thirds majority.
Fiscal Year (FY) 2023 funding bills could also serve as a potential vehicle. Congressional leaders announced a framework to extend FY 2023 appropriations through March: funding that would have expired on January 19 and February 2 would now expire on March 1 and 8, respectively. Congressional leadership announced the topline 302a funding levels, and appropriators must now agree upon 302b funding levels for each of the 12 appropriations bills.
