Senate Stalls On HR 4213

(from A.C.T.I.O.N) The Senate failed in its efforts to advance H.R. 4213, which among its many provisions included the extension of the 9 percent Low Income Housing Tax Credit (LIHTC) exchange program, the GO Zone LIHTC placed in service deadline, the LIHTC exchange program to apply to disaster LIHTC, and the New Markets Tax Credit (NMTC) program and allowing the NMTC to be taken against alternative minimum tax.

The legislation also included $1 billion for the National Housing Trust Fund and $65 million in project-based assistance for trust fund units. Opponents of the bill cited the fact that the bill increased the deficit because some of its provisions were not offset and others objected to some of the revenue-raising provisions in the bill. At this current time, it is unclear what the Senate plans are as to the future of the bill or the housing provisions. The Senate is now considering the Baucus-Grassley substitute for the Small Business Jobs Act of 2010 (H.R. 5297) . Senators Bingaman, Kerry, and Cantwell have introduced an amendment (S. Amdt 4411) to the substitute which includes a modified version of the carryback proposal for existing investments, immediately increasing private investment in the LIHTC by allowing a 5-year carryback on unused tax credits (but only to the extent that the investors will reinvest proceeds into new LIHTC housing). Stay tuned to see what will happen in the Senate.