CARH’S BROADCAST E-MAIL – Legislative Update
On Tuesday, December 16, the Senate passed H.R. 5771, the Tax Increase Prevention Act, by a vote of 76-16. Better known as the “tax extenders” bill, the legislation contains nearly $41.6 billion in tax breaks for individuals and businesses through 2014. The bill will provide until the end of December, a flat rate for the 9 percent tax credit. Unfortunately a flat rate for the 4 percent tax credit was not included in the final version of the bill that passed the Congress. The tax extenders bill that was reported by the Senate Finance Committee in early spring contained the flat rate for both 9 percent and 4 percent housing credits. There had been some hope that H.R. 5771 would be amended to include many of the Senate’s provisions. However, when the House adjourned last week, those efforts did not materialize. The New Markets Tax Credit (NMTC) program was also extended through the end of the year. The president will sign the bill into law in the next couple of days.
As indicated earlier this week, the 9 percent flat rate will be in effect only until the end of the month. While CARH appreciates the extension of the flat rate for the 9 percent housing credit, it arrives too late in a majority of the states for developers and owners to take advantage. Most applications have already been submitted using the floating rates.
The issue of the flat rate for the 9 percent and 4 percent housing credits, will continue to be an issue in the 114th Congress. It appears that tax reform will once again be part of the legislative agenda of many in the new Congress.
Again, many of the issues that will be on the horizon during the first session of the 114th Congress will be discussed during CARH’s January meeting in St. Pete Beach, Florida. You will not want to miss this meeting since you will find out how the latest Congressional action will impact your business. A full meeting brochure can be found on CARH’s web page at www.carh.org.
If you have any questions, please contact CARH at 703-837-9001 or firstname.lastname@example.org.
Don’t miss CARH’s 2015 Midyear Meeting
January 26-28, 2015, at Loews Don CeSar Hotel in St. Pete Beach, Florida!