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GOP Leadership and Clinton Administration Agreed on $25 billion in Tax Incentives

Thursday, December 14, 2000 - 1:45AM

The GOP leadership and Clinton administration have agreed to approximately $25 billion in tax incentives over the next 10 years to encourage community renewal in distressed areas. Included in this tax cut package is an incremental increase in the low-income housing tax credit (LIHC) cap, from $1.25 per capita to $1.50 per capita in 2001, and then to $1.75 per capita in 2002. The LIHC would be adjusted for inflation starting in 2003. In addition, the tax package would accelerate a scheduled increase in the state private activity bond cap 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 beginning in 2003. Both the Senate and House plan to vote this week on the tax plan. You can reach House and Senate leaders, as well as your congressional delegation, through the Capitol switchboard at (202) 224-3121.

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