April 3rd, 2017
The “Affordable Housing Credit Improvement Act of 2017” (H.R. 1661 & S. 548) was introduced in both the U.S. House and U.S. Senate in late March. The bipartisan legislation would preserve and strengthen the Low Income Housing Tax Credit (LIHTC) ensuring increased development of affordable housing.
The tax credit can be used to offset tax liability by developers who are creating new, or rehabilitating existing, low-income housing. The bills would establish a minimum 4% rate for the credits, but the rate could go as high as 30% for “Difficult to Develop Areas.”
The two companion bills are very similar, but have one key difference. The Senate bill (S. 548) includes a provision increasing the cap of the annual housing credit authority by 50% over five years, H.R. 1661 has omitted that provision.
IREM supports the LIHTC and urges congress to enact these important policy changes. For more information, please see IREM’s policy position regarding the LIHTC.