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House Passes FY 2022 Budget Resolution; Sets Stage for $3.5 Trillion Reconciliation Legislation that Likely Contains Hundreds of Billions in Community Development Tax Incentives and Funding
The House of Representatives approved the fiscal year 2022 budget resolution Tuesday, unlocking forthcoming $3.5 trillion reconciliation legislation that will likely include a significant expansion of the low-income housing tax credit (LIHTC), creation of the neighborhood homes tax credit (NHTC) to incentivize the development and rehabilitate single-family housing in distressed neighborhoods and more funding for a wide variety of U.S. Department of Housing and Urban Development (HUD) programs. In addition to these resources, the forthcoming reconciliation legislation possibly could include the creation of the middle-income housing tax credit (MIHTC) to serve renters earning just above LIHTC income limits and expansion and enhancement for the federal historic tax credit (HTC), permanence and expansion of new markets tax credit (NMTC), extension and substantial expansion of renewable and clean energy tax credits. The Senate previously approved the budget resolution, which clears the way for Democrats to use budget reconciliation to pass legislation without having to account for a Senate filibuster. The resolution includes instructions for the House and Senate committees handling the legislation to write a reconciliation bill that has a price tag as high as $3.5 trillion.
Federal legislation for affordable housing will be a major topic at the Novogradac 2021 Affordable Housing Tax Credit and Bond Conference, Sept. 30-Oct. 1 in Nashville.