Senate Passes Jobs and Growth Reconciliation Act Without Harming HTC, LIHTC

Friday, May 16, 2003 - 1:45am

The Senate last night passed H.R. 2, the Jobs and Growth Reconciliation Tax Act, by a vote of 51 to 49 after substituting the original language with the text of S. 1054 and voting on numerous amendments, including Amendment No. 622 offered by Sen. John Ensign (R-Nev.) to repeal the tax credit under §47 of the Internal Revenue Code for rehabilitation of non-historic structures. The amendment does not affect the rehabilitation tax credit for historic structures; it was passed by a vote of 75 to 25.
Although neither the House nor Senate versions of the bill feature a dividend tax exclusion that will threaten investment in the low-income housing tax credit (LIHTC), the legislation has another hurdle - bicameral conference negotiations - before it is finalized. However, the Senate last night also approved Amendment No. 672, a non-binding Sense of the Senate Resolution offered by Sen. Jack Reed (D-R.I.), that LIHTCs be protected in the final version that emerges from conference. The amendment was co-sponsored by Sens. Jon Corzine (D-N.J.), Barbara Mikulski (D-Md.), John Kerry (D-Mass.), John Rockefeller (D-W.V.), Mary Landrieu (D-La.) and Paul Sarbanes (D-Md.).