A bill designed to expand a federal low-income housing tax credit has now been sent to the U.S. Senate after winning unusual bi-partisan approval in the House of Representatives.
The Tax Relief for American Families and Workers Act of 2024, securing passage by a big 357 to 70 vote, will also increase the use of private activity bonds as a tool for financing affordable housing.
Supporters of the legislation have said that it may help to spur the building of up to 200,000 new affordable homes in the next several years.
In remarks to reporters after the vote, Missouri Republican Congressman Jason Smith, co-author of the $78 billion legislation, said of the wide approval margin: “The numbers speak for themselves, it shows that when you’re trying to deliver for the American people, people will join together, and that’s what we saw today.”
The legislation also puts back in place a 12.5% cap on a credit device that had been available from 2018 to 2021. Strongly endorsed by such groups as the National Association of Home Builders, the legislation contains the additional feature of allowing businesses to claim a 100% bonus depreciation for investments in machines, equipment, and vehicles for the tax years between 2023 and 2025.
New York Democrat Senator and Majority Leader Charles Schumer has earlier expressed support of the bill, which must secure at least 60 votes in the upper chamber in order to prevent its being filibustered.
A schedule for when the legislation may be voted upon has not yet been announced.
By Garry Boulard
