N.J. State Lawmakers Urge Congress to Support LIHTC, NMTC Increase

Published by Michael Novogradac on Monday, June 24, 2013 - 12:00am

The New Jersey General Assembly and Senate have asked Congress to support the Hurricane Sandy Tax Relief Act. The Assembly on June 20 passed Assembly Concurrent Resolution No. 193, which expresses support for increased allocations of low-income housing tax credits (LIHTCs) and new markets tax credits (NMTCs) in areas affected by Hurricane Sandy.

The state representatives ask Congress to support legislation that increases the LIHTC allocation to $8 per resident in states with counties declared natural disaster areas because of damage from Hurricane Sandy and to provide an additional $250 million in NMTCs for investments in community development entities serving Hurricane Sandy disaster areas.

The resolution says that the majority of New Jersey’s representatives, as well as representatives from New York and Connecticut, supported The Hurricane Sandy Tax Relief Act of 2012, which included the same increase for Sandy-affected areas. It also says that Congress has in the past provided the same increases in tax credits for areas affected by disasters, such as Hurricane Katrina.

The increased tax credit allocations are included in the Hurricane Sandy Tax Relief Act of 2013 (H.R.2137), which Rep. Bill Pascrell Jr, D-N.J., introduced May 23. As I mentioned in a Jan. 30 post that discussed the 2012 Hurricane Sandy bill, the $8 per capita increase could result in the creation of more than 58,000 units in the Hurricane Sandy-affected areas.