House Ways and Means Committee Approves Tax Relief Bill, Boosting Housing Credit
This past Friday, by a vote of 40-3, the House Ways and Means Committee approved H.R. 7024, the Tax Relief for American Families and Workers Act of 2024. This bill includes our housing credit provisions – the restoration of the 12.5 percent allocation increase for 2023-2025 and the reduction of the bond threshold required to access the 4 percent credit from 50 percent to 30 percent for Private Activity Bond allocations made in 2024 – 2025.
A technical description of the bill can be found here, and the revenue estimates for the provisions can be found here. The housing credit provisions begin on page 59 of the description, and the estimates are in item V on page 2 of the revenue table.
During the markup, our champions, Reps. Darin LaHood (R-IL) and Suzan DelBene (D-WA), Brad Wenstrup (R-OH), Don Beyer (D-VA), Claudia Tunney (R-NY), and Jimmy Panetta (D-CA) voiced their strong support for the LIHTC provisions. Rep. LaHood emphasized the strong bipartisan support for the housing credit provisions and noted that they will result in the production of over 200,000 additional rental units for low-income households across the country. He submitted for the record the industry letter signed by 88 national and state organizations in support of the housing credit provisions. Rep. DelBene also noted the impact of the provisions on production and commented that the provisions represent the largest expansion of the LIHTC program in several decades.
Other members who spoke in support of the LIHTC provisions included Reps. Linda Sanchez (D-CA), Drew Ferguson (R-GA), Judy Chu (D-CA), Gwenn Moore (D-WI), and Brad Schneider (D-IL). Rep. Danny Davis (D-IL) acknowledged that the bill included the LIHTC provisions, calling them important improvements. Still, he noted that the bill does not include the housing credit student rule simplification or the basis boost for extremely low-income households. Ranking Member Richard Neal (D-MA) acknowledged the work of his colleagues on a number of priorities, including the LIHTC.
Two housing credit amendments were offered during the markup. Rep. Gwen Moore (D-WI) offered an amendment to provide a basis boost for tribal communities. She withdrew the amendment, after which Chairman Jason Smith (R-MO) committed to holding a field hearing on Native American tax issues. Rep. Jimmy Panetta (D-CA) offered an amendment providing for a workforce housing tax credit but also withdrew his amendment from consideration.
The next step in the legislative process for H.R. 7024 will be consideration by the full House of Representatives. The bill may be considered under suspension of the rules, an approach that allows the House to pass a bill more quickly because debate is limited to 40 minutes, points of order are waived, and no amendments are allowed. However, the legislation must pass by a two-thirds vote of Members present and voting. Timing on when the House might vote on the bill is unclear, although many Members of Congress hope the bill might be considered by the House before the tax filing season begins on January 29th.
We want to thank those HAG members we called upon to reach out to specific Members of the Ways and Means Committee leading up to the vote. The strong vote in the Ways and Means Committee should give momentum to moving the bill, but obstacles remain. We encourage you to continue your outreach to Members of Congress, asking for their support. This strong vote demonstrates the significance of our advocacy and what it means when they hear from their constituents. Thanks for all you are doing, and we will keep you posted on any developments.