House Tax Extender Package Bolsters LIHTC Program
On Dec. 3, the House of Representatives passed the Tax Increase Prevention Act of 2014 (H.R. 5771), 378 to 46, which would extend for one year only, through 2014, a number of expired tax relief provisions, including the 9 percent housing credit floor, which will be applicable for LIHTC allocations made prior to Jan. 1, 2015.
Another provision of the House bill is to extend through 2014 the military housing allowance exclusion for determining whether a tenant in certain counties is considered low-income. Thus, this provision allows more military members to be eligible for low-income housing and expands the number of potential residents for LIHTC sites.
The House-passed bill does not include the establishment of the 4 percent acquisition Housing Credit minimum rate, which the Senate Finance Committee included in the extender bill it approved earlier this year. The Finance Committee bill extended all expiring provisions for two years.
The bipartisan House vote, tacit support from the White House, and lack of time left before Congress adjourns for the year signal that the Senate will probably pass the bill and examine the tax breaks again in 2015.