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The benefits of the low-income housing tax credit (LIHTC) program extend beyond the families occupying the approximately 200 affordable housing units that are financed each year in New Hampshire, says a recent study by the New Hampshire Finance Housing Authority. According to the report, the LIHTC developments are an important and ongoing source of income, taxes, and jobs for the state.
Congressman Christopher Gibson and Tom Reed of New York recently introduced H.R. 3769, the Irene and Lee Tax Relief Storm Recovery Act. If the bill passes, states that were hit last year by Hurricane Irene or Tropical Storm Lee may receive disaster rebuilding assistance in the form of increased low-income housing tax credit (LIHTC) caps.
The bill would raise the LIHTC ceiling of each state that includes any portion of the Irene-Lee disaster area for calendar years 2012 through 2014. The 10 flood-damaged states would get an additional 50 percent of their annual LIHTC allocation.
On Dec. 23, 2011, the IRS issued temporary and proposed rules regarding the tax treatment of costs incurred in acquiring, maintaining, and improving tangible property, including multifamily buildings. The 255 pages of new regulations, published in the Federal Register, are temporary, meaning the IRS can edit the rules if sufficiently persuaded by the business community. However, despite being issued in temporary and proposed form, the regulations are effective as of Jan. 1, 2012, and currently have the same force as a final regulation.
In December, a group of lawmakers in the House and Senate introduced legislation to make permanent the 9 percent tax credit percentage floor for the low-income housing tax credit (LIHTC).
Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration recently announced
The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012.
Information about Medicare changes for 2012 haven't been announced yet. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.
Recently, the Missouri House rejected an attempt to end tax credits for the developers of low-income housing and historic buildings. House members defeated an amendment to an economic development bill that would have placed a July 2018 expiration date on the two programs. Instead, they adopted an amendment allowing lawmakers to consider a measure in 2016 that would prohibit the tax credits.
The IRS recently published the amounts of unused low-income housing tax credit carryovers for calendar year 2011. Revenue Procedure 2011-57 details how nearly $3.66 million of unused LIHTCs were divided among the eligible states in the national pool. States qualify for the national pool if they have allocated all their housing tax credits in a calendar year and request to receive an allocation of additional LIHTCs left over by other states.
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