Senate Passes GO Zone Legislation

Friday, December 16, 2005 - 1:45am

The Senate by a voice vote passed H.R. 4440, a package of tax incentives to aid recovery in the Gulf Coast region. The amended measure reconciles separate tax proposals developed by the House and Senate. H.R.4440 creates Gulf Opportunity Zones (GO Zones) and increases low-income housing tax credit (LIHTC) allocating authority for 2006, 2007 and 2008 in the amount of the lesser of the aggregate amount allocated by the state allocating agency to buildings located in GO Zones or $18 multiplied by the population located in designated GO Zones under the most recent census. H.R. 4440 also provides that GO Zones will treated as difficult development areas (DDAs) but will not count towards the 20 percent nationwide cap on designated DDAs.

The Affordable Housing Tax Credit Coalition (AHTCC) reports that the House is expected to pass the bill quickly and send it to the President for signature before the congressional holiday recess.