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What proposal do you think would have the most impact on the low-income housing tax credit (LIHTC) program?



$5 billion in dedicated funding to be allocated through state LIHTC allocating agencies for the sole purpose of filling financing gaps.

Permit tax credit allocating agencies to exchange a portion of their 2009 LIHTCs for cash grants that could be used as a temporary measure to provide gap financing.

Allow taxpayers to elect to accelerate the LIHTC by up to 200 percent per year for each of the first three years of the 10-year credit period.

Permit taxpayers to carry back the LIHTC for up to five years and allow these credits to offset alternative minimum tax liability during that period.

Other

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1 Comments
2009-02-11 22:51:10 ET

Equally important, and mostly overlooked, is the need to make these changes apply to 4% credits as well. Otherwise, we waste a tremendous resource of tax exempt bonds and credits they bring. This is particularly impactful on acquisition-rehab deals that can be started sooner than new construction and, therefore, have a more immediate stimulus effect.


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