Housing, Community Development Organizations Issue Letter Concerning Double Taxation Proposal

Thursday, January 30, 2003 - 1:45am

A collaboration of more than 20 housing and community development organizations this week issued a joint letter expressing concern that President George W. Bush’s proposal to eliminate double taxation of corporate dividends could jeopardize the future of the low-income housing tax credit (LIHTC) program. The group reports that corporate investment accounts for more than 98 percent of the equity capital generated by the housing credit, and NCSHA’s preliminary analysis suggests that if Congress enacts the proposal corporations would forgo LIHTC investments in favor of maximizing the distribution of tax-free dividends to shareholders. To read the joint letter, click here. For more information on the proposal and the industry’s reaction to it, click here.