President Trump, in a Sunday Fox News Interview with Bill O’Reilly, predicted tax reform to be in place by the end of the year. Republicans in Congress have outlined a 200-day plan with hopes to develop both health care and tax reform bills before the August recess. Given that deadlines regarding healthcare reform have already been missed, cabinet confirmations have taken longer than is historically the norm, and the magnitude of comprehensive tax reform and healthcare reform, it’s likely that tax reform drags into 2018.
The practical impacts of this timeline leave much up in the air for LIHTC and other tax credit developers. Until there is more clarity as to the form and timing of potential tax reform legislation it is likely that tax credit equity providers will continue to underwrite new deals at a 20 percent corporate income tax rate. NH&RA will be exploring strategies developers can pursue to maximize tax credit equity pricing during this uncertain market at several of our upcoming events including the NH&RA Annual Meeting, Feb. 22-25 in Bonita Springs, FL, as well at the NH&RA/NCHMA Finding Profitable Opportunities and Financing Affordable Housing Summit, March 29-30 in Indianapolis, IN.
We strongly urge members to reach out to their Congressional Representatives and Senators to coordinate site visits by members of Congress and their staff to quality LIHTC, Historic Rehabilitation Tax Credit and New Markets Tax Credit properties in their respective districts or to otherwise set-up meetings to discuss the importance. The goal is to foster continued bipartisan support for the LIHTC program and other key community development programs and to show the positive community impacts these investments create in their districts. NH&RA and our advocacy partners are happy to assist. Contact Christian Robin at crobin@dworbell.com / 202-939-1787 or Thom Amdur at tamdur@dworbell.com / 202-939-1753 with any questions.
