House Ways & Means Committee Chairman Sander Levin (D-Mich.) has indicated that he hope to have his tax credit extenders legislation (HR 4213) and small-business focused tax bill (HR 4849) enacted into law before Memorial Day.  The extenders legislative package still has a number of major hurdles including finding $27.1 billion in new funding offsets after lawmakers’ decided to remove some of its revenue raisers to help ay for the health care package enacted last month.  Levin also indicated that broader comprehensive tax reform will not be addressed until 2011.  Key bill highlights:

HR 4849

HR 4213

  • An extension of the Build America Bond Program until April of 2013.  The program provides financial support to state and local governments through federal tax exemptions for interest on municipal bonds and is being used increasingly in conjunction with the LIHTC.  The bill also includes provisions that will lower the applicable percentage for the Build America Bond program over time along the following schedule:
    • 2009 or 2010: 35 percent
    • 2011: 33 percent
    • 2012: 31 percent
    • 2013: 30 percent
  • An expansion of the 1602 LIHTC Exchange program to projects financed using tax-exempt bonds with 4 percent tax credits.
  • An exemption that would allow new markets tax credits to be used to offset the alternative minimum tax. Similar exemptions are already in place for the LIHTC and Historic Tax Credit.
  • HR 4849 passed the House of Representatives and awaits consideration in the Senate
  • Extends for an additional year the 9 percent Section 1602 LIHTC exchange program.
  • Extends the Gulf Opportunity Zone (GO Zone) Low-Income Housing Tax Credit placed-in-service deadline as well as GO Zone Historic tax credit and bonus depreciation benefits.
  • One-year extension of the New Markets Tax Credit Program at a $5 billion annual volume.
  • H.R. 4213, as amended by the Senate, now awaits House passage.