Ways and Means Committee Chairman Charles B. Rangel (D-NY) Introduces Housing Assistance Tax Act of 2008

Earlier this afternoon, Tuesday, April 8, 2008, House Ways and Means Committee Chairman Charles B. Rangel (D-NY) introduced the Housing Assistance Tax Act of 2008. This bill represents the House version of the long-awaited modernization proposals previously reported on by the Coalition.

The legislation offers important changes to the Low Income Housing Tax Credit (Housing Credit) program intended to simplify the program and allow for increased efficiency, flexibility and preservation opportunities.  Important provisions included in the bill include (not an exhaustive list):

• Allowing Housing Credits to offset alternative minimum tax liability.
• Increasing the state’s per capita Housing Credit cap by $0.20 for calendar years 2008 and 2009
• Eliminating the 4 percent Housing Credit limit for new federally subsidized properties, except Housing Bond-financed developments not subject to the Credit allocation ceiling
• Allowing for a 30 percent basis boost for properties meeting state-designated geographic or income targeting requirements 

In introducing the legislation, Chairman Rangel noted the bill will “expand and improve the successful low-income housing tax credit to put builders to work and create affordable alternatives for families seeking new housing.”

The bill will be marked-up by the House Ways and Means Committee tomorrow, Wednesday, April 9, 2008 at 11:00 a.m. It is expected that the full House will vote on this bill within the next few weeks.  The Committee added that this legislation is intended to compliment the efforts currently taking place on the Senate floor with respect to the Housing Stimulus package.

The bill text, a summary, the Joint Committee on Taxation’s score (cost of the bill), and AHTCC’s endorsement letter are attached.  Information may also be found online at www.taxcreditcoalition.org.

If you have questions concerning this legislation, please contact Coalition legislative counsel Jim Miller (jfmiller@winston.com) at 202-282-5000.