Donald Trump today has released a preliminary version of a tax plan, calling for a reduction in the corporate tax rate to 15%, a historically low rate that may prove difficult to pass in tax reform legislation given resistance from both Democrats as well as deficit hawks in the GOP. Other features of the tax outline include eliminating all deductions for individuals except for the mortgage and charitable deductions. The president lacks authority to change the tax code, but his plan will be something for Congress to consider. After the Trump outline was announced, House Speaker Paul Ryan (R-Wis.), Senate Majority Leader Mitch McConnell (R-Ky.), House Ways & Means Committee Chairman Kevin Brady (R-Texas), and Senate Finance Committee Chairman Orrin Hatch (R-Utah) released a joint statement stating that “principles outlined by the Trump Administration today will serve as critical guideposts for Congress and the Administration as we work together to overhaul the American tax system…”

Yesterday, Rep. Brady stated his goal of passing tax reform legislation by the end of the year – a later date compared to his initial goal of this summer. Rep. Brady’s plan calls for a 20% corporate tax rate.

While the uncertainty of tax reform has caused pricing fluctuations in the equity market, a tax overhaul could present a good opportunity for expanding the LIHTC as well. Now more than ever your help is needed for advocacy efforts. We strongly urge members to reach out to their Congressional Representatives and Senators to coordinate site visits by members of Congress and their staff to quality LIHTC, Historic Rehabilitation Tax Credit and New Markets Tax Credit properties in their respective districts or to otherwise set-up meetings to discuss the importance of these programs. The goal is to foster continued bipartisan support for the LIHTC program and other key community development programs and to show the positive community impacts these investments create in their districts.  NH&RA and our advocacy partners are happy to assist.  Contact Christian Robin at crobin@dworbell.com / 202-939-1787 or Thom Amdur at tamdur@dworbell.com / 202-939-1753 with any questions.

Advocacy Resources:
LIHTC
Historic Tax Credit
New Markets Tax Credit