senate finance committee releases tax bill language with expanded housing provisions

This week the Senate Finance Committee Chairman, Senator Mike Crapo, released the proposed text of the budget reconciliation bill that contains several priorities of the Trump Administration’s agenda. CHFA is glad to see that important housing provisions that expand and strengthen the federal Housing Tax Credit and Private Activity Bond programs are included in the package with permanent authorization—a difference from the House version of the tax package that authorized expansion for four years.

As proposed in the Senate version, the housing provisions would:

Permanently increase the Housing Credit volume cap for 9 percent properties by 12 percent; and
Permanently lower the bond financing threshold from 50 percent to 25 percent for 4 percent Housing Credit properties with bonds issued after December 31, 2025.

While the House version of the bill also includes a provision to allow a basis boost for properties located in rural and Native American areas, this was not included in the Senate bill.

In addition to the housing provisions, the Senate version of the bill proposes to permanently extend the New Markets Tax Credit program—a key economic development tool that CHFA administers through its Colorado Growth and Revitalization (CGR) Fund. The NMTC is currently set to expire at the end of the year. This extension was not included in the House package.

The Senate Leadership has stated its intent to vote on the tax package soon to meet a final passage deadline before the July 4th holiday, though reconciling differences between the House and Senate versions of the bill may require longer negotiations.

CHFA will continue to voice support for the inclusion of the housing provisions in the final package to the Colorado delegation. View more information about the tax bill from our national trade association, the National Council of State Housing Agencies (NCSHA). If you have any questions, please reach out to Jerilynn Francis, Chief Communications and Community Partnerships Officer, or Julia Selby, Legislative Liaison and Policy Analyst.