Stakeholders Urge Congress to Extend Tax Credits
Hundreds of tax credit advocates have recently sent sign-on letters to Congress, urging lawmakers to extend expired or expiring tax credits during the lame-duck session. A letter from Affordable Rental Housing ACTION (A Call to Invest in Our Neighborhoods) urged Congress to extend the 9 percent low-income housing tax credit (LIHTC) minimum rate for new construction and substantial rehabilitation and the 4 percent LIHTC minimum for acquisition of affordable housing. The letter called for the floor rates to be made permanent, but said an extension for at least two years would strengthen the credit at virtually no cost to taxpayers. It featured signatures from a coalition of more than 900 national, state and local stakeholders.
Meanwhile, more than 1,500 organizations, including businesses, nonprofits and investors, signed a letter from the New Markets Tax Credit Coalition, urging Congress to extend the new markets tax credit (NMTC). The coalition letter argued that the economic activity spurred by NMTC investments has generated enough tax revenue to cover the cost of the program.
In sign-on letters addressed to the House of Representatives and the Senate, more than 500 organizations asked Congress to extend seamlessly, enhance or make permanent the expired and expiring tax provisions. That letter said that failure to extend the provisions would effectively act as a tax increase and would inject instability and uncertainty into the economy.
Tune into the Nov. 25 episode of the Tax Credit Tuesday podcast to learn more.