On Thursday, July 14, Senate Finance Committee member Maria Cantwell (D-WA) and Senate Finance Committee Chairman Orrin Hatch (R-UT) introduced legislation (S.3237) to improve the Low Income Housing Tax Credit. This legislation builds upon an earlier bill proposed by Cantwell and Hatch to increase the LIHTC program’s tax credit authority by 50% and create a 4% credit rate floor for acquisition and bond-financed projects.

Text for the newly introduced bill is currently unavailable, however, Cantwell’s press release gives a good preview:

  • Allows for a non-profit / government purchase option to Housing credit properties at year 15 to maintain affordability.
  • Creates a 50% credit boost for properties serving homeless or extremely low-income families.
  • Creates a 30% credit boost for properties located in Indian areas if necessary for financial feasibility.
  • Allows for properties to claim clean energy credits including the Energy-Efficient New Homes Credit, Energy Investment Tax Credit, and the Energy-Efficient Commercial Buildings Tax Deduction.
  • Standardizes tenant income limit rules for rural projects.

Aside from Cantwell and Hatch, the bill is also currently co-sponsored by Senator Ron Wyden (D-OR), ranking member of the Finance Committee.