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Notes from Novogradac
Affordable housing, community development and renewable energy stakeholders received good news at the end of a tumultuous 2020: the extension and expansion of several tax incentives.
The fiscal year 2021 omnibus spending bill signed in late December by President Donald Trump included a minimum 4% rate for the low-income housing tax credit (LIHTC), a five-year extension of the new markets tax credit (NMTC) and extensions of the renewable energy production tax credit (PTC) and investment tax credit (ITC). The $2.3 trillion legislation also included at least a $1.2 billion allocation of non-COVID disaster LIHTCs for 11 states and Puerto Rico and extension or expansion of several renewable energy provisions.
On Dec. 27, President Trump signed H.R. 133, the Consolidated Appropriations Act, 2021, which includes the $1.4 trillion fiscal year (FY) 2021 omnibus appropriations, COVID-19 relief, and a set of tax provisions addressing tax extenders and disaster tax relief.
Legislation passed by Congress on Dec. 21 and signed into law by President Trump on Dec. 27 includes an unprecedented $12 billion set-aside for Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs).
The $2.3 trillion omnibus spending and COVID-19 relief bills, which became law on Dec. 27, include $25 billion in emergency rental assistance. The need is overwhelming. Estimates for unpaid rent range from $34 billion to $70 billion, and the amount will undoubtedly continue rising into the new year. While the federal prohibition against evictions for nonpayment is in effect through January, bringing balances current is the only long-term solution.
The House of Representatives released a year-end legislation package today that includes a $1.4 trillion omnibus fiscal year (FY) 2021 spending bill, a $900 billion COVID-19 relief bill and a set of tax proposals, including tax extenders and community development tax incentives. The House and Senate are expected to pass the bills today and the bills are expected to be signed by the president before the current continuing resolution expires at the end of the day today.
As we await the fate of the new markets tax credit (NMTC), which is set to expire Dec. 31 (with the calendar year 2020 round still to be allocated), newly released statistics from the Community Development Financial Institutions (CDFI) Fund shows allocation demand far surpasses available authority.
(This is part three of a three-part series that looks at estimated income limits on a national, state and local level. This post covers local median income.)
The release of the 2019 American Community Survey (ACS) data provides an initial sneak peek at income limits for 2022. Using the ACS and the Congressional Budget Office’s (CBO’s) consumer price index (CPI) estimate, Novogradac can provide initial estimate area median income (AMI) and very-low income for 2021 and 2022. While we still need to wait for final CPI figures, these initial estimates provide insight into overall income limit trends.
The Joint Committee on Taxation (JCT) recently released its Estimates of Federal Tax Expenditures for Fiscal Years 2020-2024, which reports, yet again, that estimated tax expenditures for affordable housing and community development tax incentives – the low-income housing tax credit (LIHTC), historic tax credit (HTC), renewable energy production tax credit (PTC), renewable energy investment tax credit (ITC), and new markets tax credit (NMTC) and the Opportunity Zones (OZ) incentive – cost the federal government much less in lost tax revenue than many other notable tax expenditures.
(This is part two of a three-part series that looks at estimated income limits on a national, state and local level. This post covers state median income.)
The release of the 2019 American Community Survey (ACS) data provides an initial sneak peek at income limits for 2022. Using the ACS and the Congressional Budget Office’s (CBO) consumer price index (CPI) estimate, Novogradac can provide initial estimate area median income and very-low income for 2021 and 2022. While we still need to wait for final CPI figures, these initial estimates provide insight into overall income limit trends.
(This is part one of a three-part series that looks at estimated income limits on a national, state and local level. This post covers national median income.)
The release of the 2019 American Community Survey (ACS) data provides an initial sneak peek at income limits for 2022. Using the ACS and the Congressional Budget Office’s (CBO) consumer price index (CPI) estimate, Novogradac can provide initial estimate area median income and very-low income for 2021 and 2022. While we still need to wait for final CPI figures, these initial estimates provide insight into overall income limit trends.
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