H.R. 9012: Affordable Housing Credit Carryback Act

The Affordable Housing Credit Carryback Act proposes changes to the Internal Revenue Code concerning the low-income housing tax credit. The key elements of the bill are as follows:

Introduction of Carryback Provision

The bill allows for a 5-year carryback for the low-income housing tax credit (LIHTC). This means that taxpayers who qualify for the LIHTC can apply any unused credits from the current tax year to offset tax liabilities from up to five previous tax years. The LIHTC is designed to encourage the development of affordable housing by providing tax incentives to builders and developers.

Amendments to Internal Revenue Code

Specific amendments to the Internal Revenue Code involve:

• Updating the heading of a section to include "certain credits" along with marginal oil and gas well production credits.
• Explicitly incorporating the low-income housing tax credit within the relevant section of the code, indicating its eligibility for the carryback provision.

Effective Date

The changes outlined in the bill would take effect for taxable years beginning after the law's enactment.

Purpose of the Bill

The purpose of the Affordable Housing Credit Carryback Act is to enhance the utility of the low-income housing tax credit by providing greater flexibility for developers and taxpayers. By allowing carrybacks, it aims to make it easier for those involved in affordable housing projects to manage their tax liabilities and improve funding conditions for such developments.

Relevant Companies

• AMT - American Tower Corporation, which may benefit from increased affordable housing development and partnerships in telecommunications infrastructure for new housing projects.
• INVH - Invitation Homes, a company that focuses on single-family rental homes and may see a rise in property values and opportunities due to improved affordable housing projects.
• VERA - Veritas Investments, known for developing and managing rental properties, could be positively impacted by increased availability of tax credits for affordable housing development.