Housing Finance Online recently asked readers their thoughts about potential tax reform because of needed deficit reductions over the next decade and how this might affect the low-income housing tax credit (LIHTC) program.
The majority of respondents—76.7%—said they believe the program is in jeopardy. “The current rhetoric that is coming out of Washington leads me to believe that all tax credits are in jeopardy. Those in leadership roles who normally may recognize the benefits are scared of the consequences of doing what they know is right, because it may not be seen as politically popular,” noted one respondent.
However, 13.3% disagreed, saying there isn’t a threat, and the remaining 10% said they were unsure.
If the 12-member congressional super committee were to agree on tax reform by the November deadline, a little more than half of the respondents—56.7%—said they were uncertain whether the LIHTC would be saved. The remaining results were mixed, with 23.3% saying yes the program would be saved, and 20% saying no.