House Ways and Means Committee Chairman Kevin Brady (R-TX) introduced a new year-end tax relief package. The bill includes the same provision in his original bill that clarifies that veterans are a specified group for preferences within the Low Income Housing Tax Credit (LIHTC) program and extends the LIHTC public use provisions from nine percent allocations to also include four percent bond allocations.
The updated bill drops all extenders including extensions for the Section 179D energy efficiency commercial buildings deduction, the Section 45L energy efficient homes credit which are occasionally utilized in affordable housing developments.
The bill makes corrections to the Tax Cuts and Jobs Act of 2017, includes disaster tax relief, makes changes to retirement and savings tax provisions, and now repeals or delays certain health-related taxes. The addition of certain provisions might be seen as a move to the right to attract enough votes within the Republican-led House. Those same provisions might be problematic in the Senate where 60 votes will likely be required for approval.
Chairman Brady said that the Joint Committee on Taxation estimates that the revised bill would cost about $80 billion over 10 years, with most of the revenue loss stemming from the delayed health-related taxes.
