A bill aimed at allowing the low-income housing tax credit (LIHTC) to be carried back five years was introduced by Rep. Bill Pascrell on Nov. 18.
The text of the New Jersey Democrat’s legislation was not yet available.
Many affordable housing groups have been pushing for the carryback proposal as a way to bring more investment dollars into the LIHTC market.
A recent Ernst & Young survey of investors and syndicators found that having the ability to carry back their housing credits for up to five years instead of one as currently provided would be their favored legislative change. It was the proposal most likely to increase their chances of becoming investors or increasing their investment levels.
In the study, which was commissioned by Enterprise Community Partners, Inc., and the Local Initiatives Support Corp., respondents indicated that the would invest $5 billion more than they currently plan through 2011 if the carryback plan is enacted.
Additional LIHTC-related legislation may be moving soon.