On April 3, the Senate Finance Committee approved the Expiring Provisions Improvement, Reform, and Efficiency (EXPIRE) Act to extend for two years dozens of expiring tax provisions. This tax extenders package includes extending the minimum 9 percent LIHTC rate for allocations made before January 1, 2016 and an amendment establishing a fixed 4 percent LIHTC rate floor for acquisition of existing affordable housing, also for allocations made before January 1, 2016.
Based on the strong bipartisan Committee support (approved by voice vote), the possibility of full Senate consideration of the bill soon seems favorable. However, the timing remains uncertain. The Expire Act also extends for two years the New Markets Tax Credit, allows special treatment for the basic housing allowance for military personnel in LIHTC apartments, offers favorable tax treatment of mortgage debt relief and the deduction for mortgage insurance payments.
Finance Chairman Ron Wyden (D-Ore.) said the tax extenders package, with a price tag greater than $85 billion, would be the last on his watch as he seeks a broader overhaul of the tax code.