Higher Tax Credit Caps Proposed for States Hit by Storms
Congressman Christopher Gibson and Tom Reed of New York recently introduced H.R. 3769, the Irene and Lee Tax Relief Storm Recovery Act. If the bill passes, states that were hit last year by Hurricane Irene or Tropical Storm Lee may receive disaster rebuilding assistance in the form of increased low-income housing tax credit (LIHTC) caps.
The bill would raise the LIHTC ceiling of each state that includes any portion of the Irene-Lee disaster area for calendar years 2012 through 2014. The 10 flood-damaged states would get an additional 50 percent of their annual LIHTC allocation.
In addition, properties located in the disaster area that are placed in service during those years would be treated as “difficult development areas” under the bill.