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106th Congress Passed $450 billion Budget Package

Monday, December 18, 2000 - 1:45AM

A lame-duck 106th Congress on Dec. 15 passed a $450 billion budget package that includes an increase to the low-income housing tax credit (LIHC) cap. Added to a year-end funding bill, the GOP majority and White House agreed to $25 billion in tax incentives over the next 10 years to encourage renewal of economically distressed communities. The community renewal proposal would increase the LIHC cap from $1.25 to $1.50 per capita in 2001 and to $1.75 per capita in 2002. The LIHC would be adjusted for inflation beginning in 2003. The legislation would accelerate a scheduled increase in the state volume cap on tax-exempt private activity bonds to the greater of $62.50 per resident or $187.5 million in 2001, and to $75 per resident or $225 million in 2002. These limits would be indexed for inflation starting in 2003. President Clinton has pledged to sign the bill.

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