Trump Signs Bills Including 4% LIHTC Floor, NMTC Extension, Emergency Rental Assistance

Monday, December 28, 2020 - 8:30am

President Donald J. Trump signed fiscal year 2021 spending legislation Sunday that includes a permanent minimum 4% low-income housing tax credit (LIHTC), a five-year extension of the new markets tax credit (NMTC) and extensions of renewable energy tax credits. The $1.4 trillion omnibus fiscal year spending legislation includes a $1.2 billion allocation of non-COVID disaster LIHTCs for 11 states and Puerto Rico, a one-year extension of the renewable energy production tax credit (PTC) at 60% of its original amount and a two-year extension of the renewable energy tax investment tax credit (ITC) at a 26% rate. The NMTC is now authorized through 2025. Trump also signed a COVID-19 relief bill that includes $25 billion in emergency rental assistance and an extension of the Centers for Disease Control and Prevention’s federal eviction moratorium through Jan. 31, 2021.

Novogradac’s Mark Shelburne wrote a Notes from Novogradac blog post about who qualifies for the $25 billion in emergency rental assistance and how it can be used. Peter Lawrence wrote an earlier blog post that highlighted the tax provisions of the year-end legislation.

The 4% LIHTC floor, the effect of the emergency rental assistance and the extension of the eviction moratorium will be a focus of the Novogradac 2021 RAD Public Housing Virtual Conference, Jan. 14-15, 2021, and the extension of the NMTC will be covered during the Novogradac 2021 New Markets Tax Credit Virtual Conference, Jan. 21-22, 2021.