On Thursday, November 2nd, House Ways and Means Committee Chairman Kevin Brady released the Tax Cuts and Jobs Act, a draft tax proposal which, if passed, would have a negative impact on community development and affordable housing.
New Markets Tax Credit
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.
President Obama in Camden, NJ in May. Camden is one of 13 Promise Zones, a program through the Department of Housing and Urban Development that would be expanded under the 2017 proposed budget. Official White House Photo by Chuck Kennedy, via HUD.
President Obama released his proposal for the fiscal year (FY) 2017 federal budget yesterday, and it outlines the President’s lofty political ambitions for the coming year. The proposal focuses on five main goals: continuing the country’s economic and fiscal progress, supporting innovation, creating opportunity for all Americans, national security and global leadership, and improving how government works. Smart growth strategies play an important role in achieving several of those goals — here are some specifics of what the budget would mean for programs related to housing, urban development, and transportation.
Earlier this month, Smart Growth America released Federal Involvement in Real Estate, a survey of over 50 federal programs that influence real estate in some way. This post is the first in a series taking a closer look at some of the programs included in that survey. Today’s post looks at the New Markets Tax Credit.
New Markets Tax Credit allows individual and corporate investors to receive a credit against their federal income tax return in exchange for making an investment in a specialized financial institution called a Community Development Entities (CDE). Congress created the credit in 2000 as a way to attract private capital to businesses in economically challenged communities. Authorized under the Community Renewal Tax Relief Act of 2000, the program has appropriated billions of taxpayer dollars to promote investment in these areas that are often overlooked by traditional financing sources.