Legislative proposals by House Ways and Means Committee Chair Dave Camp would repeal the 4% LIHTC and change the way LIHTCs are allocated by the States. The proposals would also extend the period over which the LIHTC is recognized by the investors.
After several months of hearings on comprehensive tax reform, on February 26, 2014, Representative Camp released a tax bill referred to as the Tax Reform Act of 2014. The following is a summary of certain proposed changes related to low-income housing. We have also prepared summaries of other provisions relevant to other topical areas—please check our website for those. Although the Tax Reform Act of 2014 has not yet been formally introduced as a bill, and its prospects for passage are uncertain at this point, given the significant nature of the proposed reforms we will monitor their progress and provide updates as warranted.