MAA Update: Senate Vote Falls Short on Motion to Proceed to Tax Bill

• By: MBA/MW Staff
• On: 08/01/2024 12:18:40
• In: News

As flagged yesterday in a Mortgage Action Alliance (MAA) update, the full Senate took a vote earlier today on a procedural “cloture” motion to proceed to a debate on H.R. 7024 – the bipartisan, House-passed tax package that includes much-needed Low-Income Housing Tax Credit (LIHTC) program improvements and enhancements. Unfortunately, the procedural vote on the bill failed – as expected – by a tally of 48-44 (60 votes needed) due to differences over non-housing-related policy matters (such as the size and scope of the federal Child Tax Credit). Eight Senators failed to vote on that cloture motion this afternoon.

Why it matters: A broad bipartisan group of Senators have expressed strong support for the LIHTC provisions embedded in the bill's affordable housing title. That language would restore a LIHTC program ceiling increase from 9 percent to 12.5 percent for calendar years 2023 through 2025, which would allow states to allocate more credits for affordable housing projects. It would also temporarily lower the Private Activity Bond (PAB) threshold test from 50 percent to 30 percent for 4 percent LIHTC property projects with an issue date before 2026. These changes, if enacted, have been projected to help produce an additional 200,000 rental units nationwide over a two-year span.

What's next: Since February, MAA members have sent almost 3,000 messages urging the Senate to take a vote on H.R. 7024. That show of support for affordable housing programs like LIHTC will continue to be crucial to maintain momentum for supply-related housing credits – and other key industry priorities – as part of a more comprehensive tax policy debate in 2025.  Along with our coalition partners, MBA will continue to advocate strongly for the enactment of similar LIHTC program improvements and enhancements.

For more information, please contact Bill Killmer at (202) 557-2736, Ethan Saxon at (202) 557-2913, and George Rogers at (202) 557-2797.