LIHTC Retained, Private Activity Bonds, NMTC and HTC Repealed in House Tax Reform Bill
The low-income housing tax credit (LIHTC) would be retained, while the tax exemption for private activity bonds, new markets tax credit (NMTC) and historic tax credit (HTC) would be repealed under long-awaited tax reform legislation released today by the House Ways and Means Committee. The Tax Cuts and Jobs Act (HR 1) extends some “orphaned” renewable energy investment tax credit (ITC) technologies and makes some changes, but otherwise maintains the ITC and production tax credit (PTC) current law five-year phasedowns. The legislation would set the top corporate tax rate at 20 percent, significantly increase the standard deduction, eliminate the alternative minimum tax and retain, but limit, the home mortgage deduction. The Ways and Means committee is expected to debate the bill starting Monday, then vote to report the bill to the full House. The Senate Finance Committee is expected to consider its tax reform legislation the following week. See the Notes from Novogradac blog for more information on the legislation. Additional information will also be posted to www.taxreformresourcecenter.com as it becomes available.