Modified Chairman’s Mark to Senate Tax Reform Bill Includes Changes to LIHTC

Wednesday, November 15, 2017 - 11:30am

Senate Finance Committee Chairman Orrin Hatch, R-Utah, yesterday released a modified chairman’s mark of the Senate’s Tax Cuts and Jobs Act, including some changes from S. 548, legislation introduced by Sen. Maria Cantwell, D-Wash., and Hatch to strengthen the low-income housing tax credit (LIHTC). Provisions include allowing for a reasonable restoration period after a casualty loss, replacing the existing nonprofit right of first refusal with a purchase option, clarifying that state housing credit agencies have the authority to determine what constitutes community revitalization related to eligibility for a basis boost by virtue of being located in a qualified census tract and contributing to a “concerted community revitalization plan,” prohibiting local approval and contribution requirements, requiring qualified allocation plans to contain selection criteria for housing that serves the needs of Native Americans and renaming the LIHTC to the Affordable Housing Tax Credit.

Additional information can be found on the Tax Reform Resource Center and the Notes from Novogradac blog.