March Madness is coming to a conclusion (now that it is April) and although I will lament the end of men’s and women’s basketball seasons, I will not lament the end of what has turned out to be a disappointing March for the tax bill. The high hopes we all had after the passage of the bill in the House, and what seemed to be positive talks between Ranking Member Crapo and everyone that wanted to pass the bill, have all but crashed to the ground as Senator Crapo rallies his colleagues to vote against the bill if it is brought to the floor.
With the Senate out on recess until April 8th, we all await Majority Leader Schumer’s decision on calling for a vote. The questions are, will there be enough Republican Senators willing to buck leadership and vote for the bill, or will Senator Schumer make the Republican’s vote against it and use it as campaign fodder: Republican’s vote against business tax cuts!!
Either was, the road ahead does not appear favorable for the bill and thus our LIHTC provisions. We continue to discuss strategy with Senator Cantwell and others and I would not count out the possibility of another trick up their sleeves to get the housing provisions addressed this year but we must wait for the current drama to play out before the next act can begin.
That does not mean we are not already working on 2025 and the next version of the “tax bill of all tax bills.” Preliminary discussions are taking place on what the Affordable Housing Credit Improvement Act should look like in the 119th Congress. With a big tax bill on the docket, should the AHCIA remain as is with 27 or more provisions or should it be slimmed down to just resource provisions (bond test, 9% increase & basis boost provisions)? Competition will be intense for inclusion in what could be a $3 trillion bill so what the housing industry presents as its priorities will be strategically important. Aside from the AHCIA, we imagine the Neighborhood Homes Investment Act, the Workforce Housing Tax Credit, the Historic Tax Credit, the New Markets Tax Credit, a renter’s credit and perhaps a first-time buyer’s tax credit will all be jockeying for a spot in the bill. Prioritizing will be necessary to assure the most needed provisions are included and while never easy, accommodations will have to be made to make sure housing supply is addressed. We welcome your input in this discussion and know that CHC will be at the table.
Finally, I want to note that the Housing Advisory Group and Affordable Housing Tax Coalition will be having out annual Washington Housing Forum on May 21st on Capitol Hill. Members of either/both organizations should have already received their invitation but if you would like to attend here is a link to register. It will be an informative day with speakers from Capitol Hill and the Administration joining us.
Thank you as always for your advocacy and support, enjoy the Spring and I look forward to seeing you in DC or on the road soon.
David Gasson