Restoring Tax Credits for Affordable Housing Act Introduced in House

Thursday, July 26, 2018 - 2:45pm

Rep. James Clyburn, D-S.C., today introduced legislation to increase the low-income housing tax credit (LIHTC) annual allocation and increase the credit percentage formula. The Restoring Tax Credits for Affordable Housing Act will finance 235,000 affordable housing units projected to be lost over the next decade due to tax reform, according to a statement by Clyburn. The legislation would increase the per-capita LIHTC allocation from $2.70 to $2.90 and the small-state minimum LIHTC allocation from $3.1 million to $3.365 million. The legislation would also change the discount rate formula and add a one-time increase of 16 percent to the applicable percentage for the LIHTC. The changes would take place beginning in 2019.