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Notes from Novogradac
[Updated March 27, 2020; 5:48 p.m.; originally titled Senate Leadership Agrees to nearly $2 Trillion Phase 3 COVID-19 Response Bill]
Today, President Trump signed the $2 trillion CARES (Coronavirus Aid, Relief, and Economic Security) Act (H.R. 748). The bill contains numerous tax, grant, and loan provisions designed to provide financial aid to individuals, businesses, nonprofits and state and local governments, to help address the tremendous health and economic fallout from the public health emergency.
Although it is likely too early to understand the long term effects of the COVID-19 pandemic on the economy, there are a lot of questions about the 2020 income limits that are anticipated to be released in the coming weeks. In short, the 2020 limits will not be impacted by COVID-19, but there likely will be consequences for 2021 and beyond.
On Feb. 5, the House Financial Services Subcommittee on Housing, Community Development, and Insurance held a hearing entitled “A Future Without Public Housing? Examining the Trump Administration’s Efforts to Eliminate Public Housing.”
https://www.fema.gov/disaster/4482On March 13 the White House declared the COVID-19 public health crisis a national emergency.
The agencies responsible for administering the low-income housing tax credit (LIHTC) have hard-earned experience dealing with challenges and disasters. Whether its legislation enacted with no notice, historic hurricanes/flooding, or sudden equity market changes, allocators respond quickly and effectively.
The Internal Revenue Service recently released the population figures used to calculate calendar year 2020 low-income housing tax credit (LIHTC) and private activity bond (PAB) limits for all 50 states, Washington, D.C., and U.S. territories (see Notice 2020-10).
The Tax Policy Center (TPC) recently released a paper titled "Are Tax Expenditures Worth the Money?" that critically misunderstands housing and community development tax incentives and as a result mischaracterizes their value.
The Federal Housing Finance Agency (FHFA) announced Feb. 27 that it released $502.3 million for the 2020 allocations for the Housing Trust Fund (HTF) and Capital Magnet Funds (CMF).
While national attention is turned to South Carolina for the democratic primary, now is a good time to assess how the community development tax incentives have benefited the state. By highlighting the positive impacts the incentives have had on the state’s communities and residents, support for these incentives can be strengthened.
Community development tax incentives have tangible positive impacts on the states and individuals they serve. The presidential caucuses and primaries are a useful time to highlight those impacts, as it raises awareness and provides support for advocates who specialize in these community development tax incentives. This look at Nevada (the third in the series) follows a profile on New Hampshire.
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