On May 5, 2015, Senators Maria Cantwell (D-WA) and Pat Roberts (R-KS) introduced the “Improving the Low-Income Housing Tax Credit Rate Act” (S. 1193), which would create a permanent 9% minimum low-income housing tax credit rate for non-tax-exempt bond-financed new buildings or substantially rehabilitated buildings, and a permanent 4% minimum rate for acquisition credits. The bill would apply to all buildings placed in service after December 31, 2014.
Co-sponsors include Senators Richard Blumenthal (D-CT), Cory Booker (D-NJ), Barbara Boxer (D-CA), Ben Cardin (D-MD), Mike Crapo (R-ID), Dianne Feinstein (D-CA), Al Franken (D-MN), Kirsten Gillibrand (D-NY), Mazie Hirono (D-HI), Angus King (I-ME), Amy Klobuchar (D-MN), Patrick Leahy (D-VT), Robert Menendez (D-NJ), Patty Murray (D-WA), Bernie Sanders (I-VT), Chuck Schumer (D-NY), Jeanne Shaheen (D-NH), Debbie Stabenow (D.MI), Elizabeth Warren (D-MA) and Sheldon Whitehouse (D-RI).
The text of the Senate bill is identical to H.R. 1142, a bill introduced by Representatives Pat Tiberi (R-OH) and Richard Neal (D-MA) in late February. Although it’s unknown at this point how either bill will fare, the fact that this legislation has been introduced in both houses of Congress illustrates the importance and value of the low-income housing tax credit program, and hopefully indicates that there is some momentum behind the enactment of permanent minimum credit rates.