This morning, the House Ways and Means Committee unveiled their draft tax reform proposal. Read LOCUS President Jair Lynch’s official response to this once-in-a-generation proposed tax reform legislation.
Historic Rehabilitation Tax Credit
Yesterday Representative Dave Camp (R-MI), Chairman of the House Ways and Means Committee, introduced his proposal for comprehensive tax reform—and it has big implications for real estate and smart growth.
Each year Americans take billions of dollars worth of income tax deductions related to real estate. Things like the mortgage interest deduction and property tax deduction can represent big savings for a household—so big that they can influence taxpayers’ decisions about the type of home they buy. Even more credits are available to real estate developers, who can get tax breaks to help pay for things like redevelopment or the construction of low-income housing.
House Ways and Means Committee Chairman Dave Camp (R-MI) took the first step toward comprehensive tax reform yesterday and introduced a proposal that would have a mixed impact on communities’ efforts to grow in smart, economically efficient ways. Geoff Anderson, President and CEO of Smart Growth America, and Chris Leinberger, President of LOCUS, issued this joint statement in response:
“Above all, we’re glad Congress is finally tackling comprehensive tax reform. Hundreds of billions are currently spent through the tax code on housing and community development and much of this could be spent better than it is today. For anyone who wants to see these incentives achieve their maximum effect—helping Americans access good affordable housing choices in safe, stable, thriving communities, tax reform is a must.
The American Brewery Building in Baltimore, MD, was redeveloped with the help of the Historic Preservation Tax Credit. Photo via the National Trust for Historic Preservation.
In June Senators Ben Cardin (D-MD) and Susan Collins (R-ME) introduced S. 1141 The Creating American Prosperity Through Preservation (CAPP) Act, a bill that would encourage developers to invest in and restore historic buildings by updating the Historic Rehabilitation Tax Credit program.
Since its inception in 1976, the Historic Rehabilitation Tax Credit program has leveraged more than $106 billion of private-sector investment to preserve and rehabilitate more than 38,000 historic properties. The credit program has rehabilitated more than 75,000 low- and moderate-income housing units. In fact, nearly 75 percent of Historic Tax Credit projects are in low-income areas.