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OPPORTUNITIES &CHALLENGESA RETROSPECTIVEMichael Novogradac
@Novogradac
SEPTEMBER 28-30, 1994Novogradac & Company LLP hosts its first LIHTC conference in San FranciscoApproximately 120 attendees
9/94OFFENSE/EXPANDING
DEFENSE/PROTECTING
SEPTEMBER 28-30, 1994Novogradac & Company LLP hosts its first LIHTC conference in San FranciscoApproximately 120 attendees
9/94OFFENSE/EXPANDING
DEFENSE/PROTECTING
AUGUST 10, 1993President Bill Clinton signs
Omnibus Budget Reconciliation Act of 1993. LIHTC permanent, effective
July 1, 1992.
Source: CSPAN Archives
9/94OFFENSE/EXPANDING
DEFENSE/PROTECTING
8/93
1995Republicans take control of CongressRep. Archer proposes Dec. 31, 1997 sunset of LIHTC . . . To change LIHTC from permanent to requiring annual Congressional approval.
Source: CSPAN Archives
9/948/93
1995
OFFENSE/EXPANDING
DEFENSE/PROTECTING
1997Bills introduced to increase LIHTC cap from $1.25 to $1.75Expansion effort begins.
1987-2000 2002
$1.75
$1.25
9/948/93
1995
1997
OFFENSE/EXPANDING
DEFENSE/PROTECTING
1997Bills introduced to increase LIHTC cap from $1.25 to $1.75Expansion effort begins.
ENSIGNR-NV
JOHNSONR-CT
1987-2000 2002
$1.75
$1.25
9/948/93
1995
1997
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 2000Community Renewal Tax Relief Act of 2000 passes, includes 40% increase in LIHTC allocations
JOHNSONR-CT
9/948/93
1995
1997
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 2000Community Renewal Tax Relief Act of 2000 passes, includes 40% increase in LIHTC allocations
JOHNSONR-CT
% of Congress who cosponsored legislation proposing this expansion
of House members
86%of Senatemembers
81%
9/948/93
1995
19972000
OFFENSE/EXPANDING
DEFENSE/PROTECTING
JANUARY 2003President Bush proposes allowing corporations to deduct dividends paid
9/948/93
1995
19972000
2003
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 31, 2005Gulf Opportunities Zone Act -$18 per capita 2006 - 2008
9/948/93
1995
19972000
2003
2005OFFENSE/EXPANDING
DEFENSE/PROTECTING
JULY 30, 2008Housing and Economic Recovery Act of 2008 further strengthens the program.States have increased flexibility to reach difficult-to-serve populations and places.
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
Billi
ons
Per capita credit set at $1.25
2002$1.75
2008$2.20
2007$1.95
9/948/93
1995
19972000
2003
20052008OFFENSE/EXPANDING
DEFENSE/PROTECTING
FEBRUARY 2009Treasury Section 1602 Tax Credit Exchange Program (TCEP) and the HUD Tax Credit Assistance Program (TCAP), both enacted as part of the American Recovery and Reinvestment Act.
9/948/93
1995
19972000
2003
20052008
2009
OFFENSE/EXPANDING
DEFENSE/PROTECTING
JANUARY 20139% floor and bonus depreciation extended.
9/948/93
1995
19972000
2003
20052008
2009
2013
OFFENSE/EXPANDING
DEFENSE/PROTECTING
MAY 2013Novogradac releases report on effects Tax Reform would have on Affordable Rental Housing
9/948/93
1995
19972000
2003
20052008
2009
2013
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 20149% floor and bonus depreciation extended, again.
9/948/93
1995
19972000
2003
20052008
2009
2013 2014
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 18, 2015Protecting Americans from Tax Hike (PATH) Act of 2015.
Source: GOPSenateFinance
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 18, 2015Protecting Americans from Tax Hike (PATH) Act of 2015.
Permanent9% floor
Bonus depreciationEXTENDED FIVE YEARS
2015 2016 2017 2018 2019
50% 50% 50% 40% 30%
Source: GOPSenateFinance
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
OFFENSE/EXPANDING
DEFENSE/PROTECTING
NOVEMBER 2, 2017House version of Tax Cuts and Jobs Act of 2017 introduced.Proposed repealing private activity bonds.
Source: C-SPAN
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
NOVEMBER 2, 2017House version of Tax Cuts and Jobs Act of 2017 introduced.Proposed repealing private activity bonds.
more than half
4 percent LIHTCs finance
of affordable rental housing each year.
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
NOVEMBER 3, 2017Novogradac releases report on likely loss of units from Tax Reform
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 22, 2017President Donald Trump signs H.R. 1 (the Tax Cuts and Jobs Act) into law.
Source: C-SPAN
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 22, 2017President Donald Trump signs H.R. 1 (the Tax Cuts and Jobs Act) into law.
Overall badbut could have been
terrible
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
DECEMBER 22, 2017President Donald Trump signs H.R. 1 (the Tax Cuts and Jobs Act) into law.
Lower Corporate RateInterest Expense Deductibility LimitHTC – five years
9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
TODAY – POSITIVES SO FAR
OpportunityZones
12.5%12.5%Increase
IncomeAveraging
HUD IncomeNumbers
HUDFunding Up
PAB Usage
TODAY9/948/93
1995
19972000
2003
20052008
2009
2013 2014 2015
2017
OFFENSE/EXPANDING
DEFENSE/PROTECTING
OPPORTUNITIES &CHALLENGESA RETROSPECTIVEMichael Novogradac
@Novogradac
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