The U.S. Congress may enact a tax extenders package before the end of 2022. Many tax provisions are authorized for only a set number of years, forcing Congress to reevaluate them periodically and decide whether to extend those provisions that are expiring. With a number of tax provisions up for extension at the end of this year, the tax extenders package presents an opportunity to expand and make needed legislative changes to the Low-Income Housing Tax Credit (LIHTC) program so that it better serves households with the lowest incomes. NLIHC is urging Congress to pair an expansion of LIHTC with the following reforms in any tax extenders package:
- Provide incentives to serve extremely low-income households and people experiencing homelessness, as well as reforms to encourage affordable housing development in tribal nations and rural areas, so that LIHTC better serves communities with the greatest affordable housing needs.
- Eliminate the “Qualified Contract” loophole, ensure data transparency, and clarify and strengthen nonprofits’ right of first refusal to ensure long-term affordability.
- Extend vital renter protections to tenants living in LIHTC properties.
Learn more about key reforms needed to ensure LIHTC is serving households with the lowest incomes here.
Advocates should continue contacting their members of Congress to urge them to include these provisions in any tax extender package moving forward. Use NLIHC’s Fall and Winter 2022 Advocacy Toolkit to help create your message to Congress, and visit our Take Action page for more ways to get involved!