LIHTC Changes Not Recommended by Finance Committee Tax Reform Working Group
Recently, the Senate Finance Committee led by Committee Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) released reports from five bipartisan tax working groups. The groups were tasked earlier this year to examine and recommend changes to particular elements of the federal tax code.
In announcing the release of the reports, Senator Hatch stated, “Any remake of the U.S. tax code should work to lower the rates and broaden the base. We need to simplify the code and make it easier for families and create a system to keep American job-creators competitive around the globe. Now, armed with new ideas, I plan to work with Senator Wyden to review each working groups’ report and examine how they can be used to further advance the Committee’s efforts to achieve this bipartisan goal.”
The following is a list of the released reports:
- The Business Income Tax Bipartisan Tax Working Group Report
- The Community Development & Infrastructure Bipartisan Tax Working Group Report
- The Individual Income Tax Bipartisan Tax Working Group Report
- The International Tax Bipartisan Tax Working Group Report
- The Savings & Investment Bipartisan Tax Working Group Report
The group that produced the Community Development and Infrastructure Bipartisan Tax Working Group Report evaluated the LIHTC and bond programs. However, the report gives a review of these programs and didn’t specifically call for any policy changes or changes in those programs. Beyond giving a general description of the tax credit program, it estimated the tax expenditure for fiscal years 2014 to 2018 to be $40.5 billion for the LIHTC program. The report focused on the Highway Trust Fund and didn’t address tax provisions affecting affordable housing.
Now that the reports have been issued, it will be the job of the chairman and ranking member to review recommendations and then move a tax reform bill out the committee.