Senate Rejects Tax Package with LIHTC Expansion
By: Jenna Hampton, Legislative Affairs Manager
Senate Majority Leader Chuck Schumer (D-NY)
On August 1, the Senate voted 48 – 44 on the Tax Relief for American Families and Workers Act of 2024, failing to reach the 60 votes needed for the bill to move forward. This large-scale tax package passed the House of Representatives earlier this year with broad bipartisan support on a vote of 357 – 70. Senate Republicans, led by Sen. Mike Crapo of Idaho, took issue with certain Child Tax Credit provisions and pivoted to working on a new 2025 tax package following the general election in November. In addition to the Child Tax Credit and corporate tax breaks, the tax package includes two provisions to expand the Low-Income Housing Tax Credit (LIHTC):
- Restoring the 12.5 percent increase in the 9 percent Housing Credit authority the program suffered after a temporary increase expired in 2021 (applicable to 2023, 2024, and 2025).
- Lowering the bond-financing threshold for 4 Percent Housing Credit developments financed with bonds that have an issue date prior to 2026.
The two LIHTC provisions come from the Affordable Housing Credit Improvement Act (AHCIA) and could support the creation of 200,000 new affordable housing units. In a statement on the floor, Senate Majority Leader Chuck Schumer (D-NY) said these provisions would ease America’s housing crisis “by expanding the Low-Income Housing Tax Credit – something I deeply care about and urged to be put in the bill. I’m glad it’s there.”
Three Republicans defected from the party-line vote to support the tax package: Sen. Josh Hawley (R-MO), Sen. Markwayne Mullin (R-OK), and Sen. Rick Scott (R-FL). Former President Donald Trump’s running mate, Sen. J.D. Vance (R-OH), was marked as absent due to campaign travel. Independent Senators Joe Manchin (WV) and Sen. Bernie Sanders (VT) broke with the Democrats and voted no on the bill.
Over 200 NAHRO advocates sent 600 letters to the Senate this week in support of the LIHTC provisions in the tax package. Thank you for your advocacy! NAHRO will continue pushing Congress to include LIHTC improvement and expansions in any upcoming tax legislation.