Tax Reform Tag Archives

Another Week, Another Tax Bill

House Ways and Means Chairman Kevin Brady (R-Texas) released a third iteration of a year-end tax package. The new version includes the same provision in his original and second 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.

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Lame Duck Session Update: Tax Bill and Appropriations

Congress returns this week after its Thanksgiving break with a full agenda.  Priorities include extending funding for most federal agencies for FY 2019, which expires on Dec. 7, and a potential tax package. Chairman of the House Ways and Means Committee Kevin Brady (R-TX) released a tax bill that Congressional Republicans hope to pass during the lame-duck. The bill makes corrections to the Tax Cuts and Jobs Act of 2017, extends several expiring tax measures, includes disaster tax relief and makes changes to retirement and savings tax provisions. 

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Rep. Brady Announces Draft Tax Measure; Text to be Circulated Soon

House Ways & Means Chairman Kevin Brady (R-TX) has announced he has completed a draft tax measure to fix the “retail glitch” in the new tax law and address many tax extenders.  The draft measure is expected to be circulated in the next few days. It is unclear at time of press whether any affordable housing, historic rehabilitation or New Markets Tax Credit provisions are included in Chairman Brady’s draft, which is said to include between 70-80 alterations to last year’s the tax law, HR 1.  The measure is a potential vehicle for several NH&RA priorities including fixing the 4 percent LIHTC rate, basis adjustment provisions for the historic credit and an extension of the NMTC, which is set to sunset next year.  We will update this story as it develops.

IRS Publishes Early Release Draft of HTC Form; Clarifies Credit to Be Claimed at 4 Percent Per Year for Five Years

The Internal Revenue Services (IRS) has issued an updated Draft Form 3468 and Draft Instructions for the 2018 tax year.  This is the form that taxpayers must submit in order to claim the federal historic tax credit, as well as several other investment and energy credits. Notably, the form answers a significant question coming out of tax-reform — when the Historic Credit was amended to be claimed “ratably” over 5 years. The form indicates that post-2017 historic credits projects not covered by the transition rules will claim the the credit at a rate of 4 percent per year over five years, beginning with the year placed in service. Prior to tax reform, the historic credit was claimed when the project was placed in service. A final release of this form is expected later this month and it is possible, though unlikely, that the draft form and its instructions could be changed

House of Representatives Approves Tax Reform 2.0; Tax Credit Provisions Absent

On Monday, Sept. 10, House Ways & Means Committee Chair Kevin Brady (R-TX) introduced a three bill follow-up to the  Tax Cuts and Jobs Act. These bills constitute Republicans’ Tax Reform 2.0 package and primarily lock in individual and small business tax cuts made in the legislation passed in December 2017, and reform savings- and education-related tax provisions.  The measures as introduced do not make any enhancements or changes to the LIHTC, Historic Rehabilitation Tax Credit or New Markets Tax Credit.  A markup was scheduled for September 13 and the measures were approved by the House Ways & Means Committee on a party-line vote.  Speaking to reporters after the markup, Brady declined to predict whether the bills would go to the House floor. “We have it ready for them, and in our conference I see strong support for permanency, savings, and innovation,” he said. “We’re hopeful that the Senate can pick the various bills up as they see the 60-vote support.”  The legislative package was adopted by the House of Representatives on September 28 by a largely party-line 220-191 vote.  Democrats have indicated that the measures would be “dead-on-arrival in the Senate.”

The following bills were introduced as part of this Tax Reform 2.0 package:

H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, sponsored by Rep. Rodney Davis (R-IL), and cosponsored by Rep. Mark Meadows (R-NC), Rep. Mark Walker (R-NC), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans.  This measure further modifies tax rates, impacts deductions for pass-thru entities, amends a number of family and individual focused tax breaks, removes or amends a number of deductions, increases the estate tax and gift tax exemption and increases the exemption for AMT for individuals.

H.R. 6757, the Family Savings Act of 2018, sponsored by Rep. Mike Kelly (R-PA), and cosponsored by Rep. Paul Mitchell (R-MI), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans.  This bill amends various provisions related to retirement and educational savings.

H.R. 6756, the American Innovation Act of 2018, sponsored by Tax Policy Subcommittee Chairman Vern Buchanan (R-FL), and cosponsored by House Ways and Means Committee Chairman Kevin Brady (R-TX) and all other Ways and Means Committee Republicans.  The measure creates incentives primarily oriented for start-up businesses.

According to the Joint Committee on Taxation estimates, the three measures would cost $657.3 billion over the next 10 years.

Novogradac & Company Provides Analysis of Jobs Lost Due to Affordable Housing Provisions in House Tax Reform Legislation

Novogradac & Company has expanded its recent analysis of the  currently drafted H.R. 1, the Tax Cuts and Jobs Act, which would reduce the future supply of affordable rental housing by nearly 1 million rental homes, a loss of as much as two-thirds current affordable rental housing production.

That significant reduction in housing production would also mean the loss of more than a million jobs and billions of dollars in business income and federal, state and local tax revenue across the United StatesClick here to view the full post on Novogradac & Companies website.

Here is how these losses would break down by state: