As shared by Tony Bertoldi, Co-President at CREA and Forbes author of American Dream Come True, the Tax Relief for American Families and Workers Act of 2024 is still on the table and has potential to go to senate for a vote in July 2024. Read about this bipartisan bill below, where it stands and how you can help support it.
by Tony Bertoldi via tonybertoldi.com
The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) is a bipartisan bill that contains much-needed provisions to expand the Low-Income Housing Tax Credit (LIHTC). Those provisions include a 12.5% increase in the 9% credit for 2023, 2024 and 2025; as well as a reduction in the 50% test for bond deals to 30% for developments that close before December 31, 2025. Novogradac & Company, LLP estimates that these provisions will create approximately 200,000 new affordable apartment homes at a time when the nation is addressing an affordable housing crisis.
The $78 billion cost of the tax bill is entirely paid for by the repeal of the Employee Retention Tax Credit, a COVID-era credit that has fallen out of favor, with the LIHTC provisions in the bill being less than 10% of its total cost. The other primary provisions in the bill include:
the reinstatement of the Child Tax Credit
several pro-business provisions for the R&D Tax Credit
bonus depreciation
other extensions to expensing certain items for tax purposes
While this may not be universally true, both parties appear to support the LIHTC provisions. The Republicans are otherwise focused on pro-business provisions while Democrats support the Child Tax Credit. A vote in the House of Representatives this January provided evidence of bipartisan support. The House passed the bill 357-70, with 188 Democrats and 169 Republicans in favor. It is refreshing and unusual in today’s Congress to see support from both parties on a piece of legislation.
That brings us to today, where the bill has been languishing in the Senate. The Senate needs 60 votes to pass, but, in addition to limited floor time and a multitude of priorities, there is some resistance from Republican Senators. After receiving support from LIHTC champions in the Senate and facing pressure from different groups that want to see the bill passed, there is a renewed hope that an up-and-down vote on the bill will be scheduled in mid-July. Senator leadership expects to have 50 Democrats in favor of the bill with the hope of hitting the 60-vote threshold with the support of 10 Republicans.
Now is the time to reach out to your Senator and urge them to take this bill to the floor and vote in its favor and support of working families, businesses, and affordable housing.
