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President Clinton Signed $450 Billion Budget Package

Thursday, December 28, 2000 - 1:00AM

President Clinton signed a $450 billion budget package Dec. 21 that includes an increase to the low-income housing tax credit cap. Added to a year-end funding bill, the GOP majority and White House agreed to $25 billion in tax incentives over the next 10 years to encourage renewal of economically distressed communities. The community renewal proposal would increase the LIHC cap from $1.25 to $1.50 per capita in 2001 and to $1.75 per capita in 2002. The LIHC would be adjusted for inflation beginning in 2003. The bill also assures that no state will receive less than $2 million annually. The legislation would accelerate a scheduled increase in the state volume cap on tax-exempt private activity bonds to the greater of $62.50 per resident or $187.5 million in 2001, and to $75 per resident or $225 million in 2002. These limits would be indexed for inflation starting in 2003.

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