Dec. 22, 2020: Omnibus Fiscal Year 2021 Spending Bill and COVID-19 Relief Bill

Published by Michael Novogradac on Tuesday, December 22, 2020 - 1:30pm

In this week’s Tax Credit Tuesday podcast, Michael J. Novogradac, CPA, and Peter Lawrence, director of public policy and government relations at Novogradac, discuss the $1.4 trillion omnibus fiscal year 2021 spending bill, which includes a permanent minimum 4% low-income housing tax credit (LIHTC) rate, a five-year extension of the new markets tax credit (NMTC) and an extension of phase-down provisions for the renewable energy investment tax credit (ITC) and production tax credit (PTC). They also discuss the $900 billion COVID-19 relief bill, which includes $25 billion in emergency rental assistance and an extension of the Center for Disease Control’s federal eviction moratorium through Jan. 31, 2021. The year-end omnibus legislation will permanently establish the 4% minimum LIHTC rate and include a $1.1 billion allocation of disaster LIHTCs for 11 states and Puerto Rico. The legislation will extend the NMTC–which is currently set to expire with the calendar-year 2020 round–through the calendar-year 2025 round. The PTC will be extended one year at a 40% rate and the ITC will have two extra years as a 26% credit. The COVID-19 relief legislation also includes a reopening of the Paycheck Protection Program, $600 in stimulus checks to individuals and $300 in weekly federal unemployment benefits.