In a big show of support, Republicans on the powerful House Ways and Means Committee have agreed to support the low-income housing tax credit (LIHTC) during upcoming tax reform efforts.
The lawmakers reportedly took the stand during a retreat meeting this week. It's an important step as they begin drafting a blueprint to revise the tax code.
The move comes at a time when many in the affordable housing industry have been nervous about the future of the LIHTC program. With Donald Trump heading to the White House and Republicans in control of the House and Senate, the prospects of tax reform have increased. That’s led to concerns that the housing credit could get significantly diminished under a sweeping tax reform effort.
Despite the election turbulence, several LIHTC advocates say they feel the housing credit remains in strong position.
The National Association of Home Builders reported in blog post today that the Republicans on the Ways and Means Committee have agreed to keep the LIHTC in its efforts to revamp the tax code.
An affordable housing industry leader also told AHF that committee members have agreed to maintain the LIHTC as it drafts its plans.
“The committee's action is both a testament to the LIHTC program and the advocacy efforts of our industry,” says David Gasson, executive director of the Housing Advisory Group and a vice president at Boston Capital. “This by no means marks the end of the process as nothing is certain until tax reform is passed or abandoned, but at this point in the process we could not ask for a stronger endorsement of the program.”
