New National Tax Package Includes LIHTC Improvements
On Jan. 16th, U.S. House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR) announced agreement on the Tax Relief for American Families and Workers Act of 2024, which they hope to enact by Jan. 29th.
The tax package includes items of particular interest to aging services providers, such as a restoration of the 12.5 percent Low-Income Housing Tax Credit (LIHTC) ceiling. This “ceiling,” which was previously in place from 2018 to 2021, allows states to allocate more credits for affordable housing projects. The restoration would be effective for calendar years 2023 through 2025.
The tax package would also lower the bond financing threshold to 30 percent from the current 50 percent for projects financed by bonds with an issue date before 2026.
“The improvements this plan makes to the Low-Income Housing Tax Credit will build more than 200,000 new affordable housing units,” Chairman Wyden said in a statement.
LeadingAge has advocated for these LIHTC improvements and supports their inclusion in the tax package.
Contact: Annalyse Komoroske Denio, akomoroskedenio@leadingageny.org, 518-867-8866