With the passage of the Senate GOP tax plan, Congress will work to reconcile measures in the two GOP tax reform bills, including the historic tax credit, the mortgage interest deduction, and the low-income housing tax credit.
The Senate's bill retains private-activity bonds, which account for roughly 60 percent of affordable housing units built using low-income housing tax credits, while the House's bill repeals the bonds. Curbed reports that the historic tax credit is repealed in the House bill, while in the Senate bill credits must be claimed over 5 years, as opposed to current law where credits are claimed when the house is put into service.
Real estate lobbies and affordable housing advocates have been among the most vocal critics of the two bills. The National Association of Realtors and the National Association of Home Builders have previously expressed opposition to the bills, as well as multiple affordable housing organizations that believe the low-income housing tax credit is essential to combating escalating housing costs.
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