Tax Extenders Legislation Signed into Law
Congress has passed and the president, on Dec. 18, signed the Protecting Americans from Tax Hikes (PATH) Act of 2016. The legislation makes permanent the minimum 9 percent low-income housing tax credit (LIHTC) applicable percentage or rate for federally unsubsidized developments. This doesn’t apply to the acquisition cost of existing projects or projects that use tax-exempt bond financing. These projects must still use the floating 4 percent tax credit percentage. This amendment is retroactively effective as of Jan. 1, 2015.