SENATE OKS RECOVERY BILL WITH LIHTC, NMTC, RETC PROVISIONS
The Senate today voted 61 to 37 to approve H.R. 1, the American Recovery and Reinvestment Act of 2009. The Senate version of the economic recovery package includes a provision to accelerate the low-income housing tax credit (LIHTC) allowing investors to claim 20 percent of the allowable credits in each of the first three years, and the remaining 40 percent over the next seven years. The bill also provides $2 billion dollars of LIHTC gap financing.
The Senate measure would also authorize an additional $1.5 billion for the 2008 new markets tax credit (NMTC) allocation round and an additional $1.5 billion for the 2009 allocation round. The NMTCs allocated for the 2009 round would be allowed against the alternative minimum tax.
In addition, the Senate’s proposal extends the placed-in-service date for wind facilities through December 31, 2012 and through December 31, 2013 for certain other qualifying facilities. The proposal would also temporarily allow renewable energy production facilities to elect the investment tax credit in lieu of the production tax credit.
Click here for a summary of the finance provisions included in the final version of the Senate bill. The legislation will now go through a conferencing process to resolve differences with the House-passed recovery legislation. Lawmakers have indicated they intend to deliver a final bill to the president for his signature by the end of this week.