HOUSE COMMITTEE PASSES KATRINA HOUSING TAX RELIEF ACT
The House Ways and Means Committee yesterday by voice vote approved H.R.1562, the "Katrina Housing Tax Relief Act of 2007." The bill would make several changes to rules governing tax incentives for rebuilding in the Gulf Opportunity Zone (GO Zone), including extending for two years, until December 31, 2010, the placed-in-service deadline for low-income housing tax credits (LIHTCs). The committee approved H.R. 1562 after approving two amendments — one that would offset the 10-year, $237 million cost of the bill, and a second, offered by Rep. Kenny C. Hulshof, R-Mo., that would require the Government Accountability Office (GAO) to issue a report examining how the tax incentives are being utilized by state and local governments within one year of the bill’s enactment.
This legislation and other topics related to reconstruction in the GO Zone will be the focus of Novogradac & Company LLP’s upcoming GO Zone Forum on May 15-16, 2007 in New Orleans, La.