On April 3, the Senate Finance Committee approved the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act of 2014, which would extend dozens of expired and expiring tax provisions. The legislation passed by a voice vote which evidenced virtually unanimous bipartisan support. The next step for the bill is consideration by the full Senate the timing of which is still up in the air.
Among the provisions included in the bill Is the extension of the minimum 9 percent Housing Credit rate for Credit allocations made before January 1, 2016. The bill would also enact a minimum 4 percent Housing Credit rate applicable to buildings placed in service after the date of enactment with respect to Credit allocations made before January 1, 2016. The inclusion of both provisions was the result of a bipartisan effort led by Senators Maria Cantwell (D-WA) and Pat Roberts (R-KS). AHTCC has been working closely with Senator Cantwell in pursuing legislation which would make these floors permanent. AHTCC continues to be grateful for the bipartisan support the Senate Finance Committee has shown for the Housing Credit.
The legislation also includes a two-year extension of a provision that excludes military housing allowances from income for the purposes of determining Housing Credit income eligibility. This provision only applies to certain military bases.
New Finance Committee Chairman Ron Wyden (D-OR) was determined to take early Committee action on the extenders, but most observers believe that final enactment of an extenders bill will have to wait until the House and Senate agree on a bill, which is not likely to occur until after November. House Ways and Means Chairman Dave Camp (R-MI) has announced that he will not take the same approach as Chairman Wyden but will instead hold hearings to determine which of the extenders should be permanent and which should remain expired. He then could mark up legislation which will include only a small number of provisions to be made permanent. The Coalition will be working with the Ways and Means Committee in an effort to make both the 9 and percent Credit floors permanent provisions in the Internal Revenue Code. It will be up to Chairman Camp and Chairman Wyden to reconcile their two very different approaches.
Note that the focus on extenders in the two tax writing Committees assumes that tax reform will not take place this year or even next year. Chairman Wyden said at the beginning of the April 3 markup of the extenders bill, however, that this would be the last such bill he would mark up as Chairman. Like Chairman Camp, he is determined to advance tax reform with the understanding that it will be a very long process.
If you have questions concerning AHTCC’s legislative efforts in general, please contact Coalition legislative counsel Jim Miller (202-489-3711 or firstname.lastname@example.org) or Coalition legal counsel Rick Goldstein (202-585-8730 or email@example.com). Stay up to date on important industry information. Follow us on Twitter, Facebook and LinkedIn.