Louisiana relief bill proposes credits, bonds
The folks at Novogradac have spotted yesterday's introduction of S. 1765, a reconstruction proposal by Louisiana's Senators that contains tax credit and bond proposals of interest to housing developers. It's a turbocharged variation on the previously proposed HR 3769, but with lagniappe for Louisiana.
Important among the provisions is the proposed Sec. 752, which, for Louisiana only, would double the Low Income Housing Tax Credit (LIHTC) to $3.70 per capita from the current $1.85 per capita. Additionally, in the Hurricane Katrina disaster areas of Louisiana, projects could receive the tax credit based on at least 60% of tenants living at 80% or less of median income -- a higher income cap than usual. Furthermore, Katrina disaster area projects within Louisiana that are placed in service after the legislation passes and through 2007 would apparently qualify as high cost areas. Such projects would receive between 130% and 200% of the usual tax credit allocation as determined by the Louisiana Housing Finance Agency.
Also in the bill:
- Sec. 744, a tax credit for Hurricane Katrina relocation expenses of individuals or businesses.
- Sec. 746, a "Hurricane Katrina disaster zone restoration tax credit" for up to 20% of "the taxpayer's cost of Hurricane Katrina Disaster Zone property placed in service during the taxable year," the reward depending on how soon it is placed in service, and the "Hurricane Katrina Disaster Zones" being defined as the areas that were placed under Katrina-related Presidential disaster declarations before Sep. 14.
- Sec. 751, a New Markets Tax Credit expansion that would treat all Katrina disaster zone areas as "low-income communities" for purposes of the credit, meanwhile expanding the allocation for the credit to $6 billion for 2005, of which $4 billion would be for the Katrina disaster zones, and expanding the 2006 and 2007 allocations to $6.5 billion each, of which $3 billion each year would be for the Katrina disaster zones.
- Sec. 1400M(c), which would allow the issuance of up to $45 billion in Hurricane Katrina Disaster Bonds.
Important among the provisions is the proposed Sec. 752, which, for Louisiana only, would double the Low Income Housing Tax Credit (LIHTC) to $3.70 per capita from the current $1.85 per capita. Additionally, in the Hurricane Katrina disaster areas of Louisiana, projects could receive the tax credit based on at least 60% of tenants living at 80% or less of median income -- a higher income cap than usual. Furthermore, Katrina disaster area projects within Louisiana that are placed in service after the legislation passes and through 2007 would apparently qualify as high cost areas. Such projects would receive between 130% and 200% of the usual tax credit allocation as determined by the Louisiana Housing Finance Agency.
Also in the bill:
- Sec. 744, a tax credit for Hurricane Katrina relocation expenses of individuals or businesses.
- Sec. 746, a "Hurricane Katrina disaster zone restoration tax credit" for up to 20% of "the taxpayer's cost of Hurricane Katrina Disaster Zone property placed in service during the taxable year," the reward depending on how soon it is placed in service, and the "Hurricane Katrina Disaster Zones" being defined as the areas that were placed under Katrina-related Presidential disaster declarations before Sep. 14.
- Sec. 751, a New Markets Tax Credit expansion that would treat all Katrina disaster zone areas as "low-income communities" for purposes of the credit, meanwhile expanding the allocation for the credit to $6 billion for 2005, of which $4 billion would be for the Katrina disaster zones, and expanding the 2006 and 2007 allocations to $6.5 billion each, of which $3 billion each year would be for the Katrina disaster zones.
- Sec. 1400M(c), which would allow the issuance of up to $45 billion in Hurricane Katrina Disaster Bonds.
posted by Martha Bridegam at 11:50 AM
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