House Ways and Means Committee Issues Tax Reform Discussion Draft - Revises LIHTC, Other Housing Provisions - February 27, 2014

House Ways and Means Committee Issues Tax Reform Discussion Draft - Revises LIHTC, Other Housing Provisions

As detailed by Enterprise, House Ways and Means Chairman Dave Camp (R-Mich.) released his long-awaited comprehensive tax reform discussion draft, the Tax Reform Act of 2014. The draft eliminates dozens of corporate tax expenditures in order to bring top corporate rates down to 25 percent, but retains the 9% Low Income Housing Tax Credit with major modifications, including eliminating the 4 percent Housing Credit, extending the credit period from 10 to 15 years and eliminating private activity bonds. It also would gradually lower the mortgage interest deduction, lowering the cap on debt from $1 million to $500,000 over four years.   It does not include a permanent extension of the New Markets Tax Credit.  See Enterprise Community Partners’ statement and summary of these provisions, as well as the ACTION Campaign’s statement on the Low Income Housing Tax Credit.