February 15, 2017

Policy Focus: Corporate Tax Reform

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This is part one of a five-part series highlighting Enterprise's key policy areas in 2017.

President Trump and Congress plan to prioritize corporate tax reform in 2017. Measures to significantly reduce corporate tax rates would likely make it much more difficult for private investment capital to reach low-income neighborhoods, threatening:

  • A reduction or elimination of essential programs like the Low-Income Housing Tax Credit (Housing Credit or LIHTC); the tax exemption for private activity bonds used in conjunction with the Housing Credit (Housing Bonds); and the New Markets Tax Credit (NMTC). 
  • Diminished efficacy of these programs through reductions in allocation or other reforms.
  • Significantly reduced investor demand for these programs because of lower tax liabilities.

We were pleased to hear Dr. Ben Carson, HUD Secretary nominee, point to the Housing Credit as an “excellent example” of an effective public-private partnership during his confirmation hearing.

Enterprise is committed to preserving, strengthening and expanding the Housing Credit and the New Markets Tax Credit as part of any tax reform effort — including advocating for provisions that maintain the value of these credits — and preserving the tax exemption for Housing Bonds. Enterprise co-leads the ACTION Campaign, a coalition of nearly 2,000 organizations dedicated to expanding and strengthening the Housing Credit. We also helped to lead efforts to expand and strengthen the Housing Credit in 2016, which we will continue when this legislation is reintroduced in 2017.

Read on to see why protecting these crucial programs is our top priority, and about the many ways they’ve already helped people and communities thrive.

An $11.5 million LIHTC investment helps transform Seattle's first public housing
development into a model mixed-income community at Kebero Court

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Enterprise's Scott Hoekman in the Washington Examiner: "The low-income housing
tax credit is the major tool for building affordable rental housing in the U.S."

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2,000 organizations urge the new administration and Congress to support
the Housing Credit in a letter from the ACTION Campaign. 

A $9 million NMTC investment expands health services in a San Diego
neighborhood where 40 percent of residents are uninsured. 

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Resource - Giving Due Credit: Balancing Priorities in State
Low-Income Housing Tax Credit Allocation Policies

Cover Preview - Giving Due Credit.pngThis report provides a broad new analysis of how the primary source of capital for affordable rental homes is distributed.

"Giving Due Credit" also identified approaches to:

  • Reducing the cost of development and preservation
  • Creating incentives for innovative practices
  • Ensuring that Housing Credits produce homes that are well-located, durable, sustainable and connected to good schools, jobs, transit and health care

$25.7 million in LIHTC and Federal Historic Tax Credit Equity took Saint Luke's Manor
from shuttered hospital to multigenerational living & learning campus. 

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Leveraging LIHTC to give 30 New Orleans families and affordable place to call home. 

Enterprise Community Investment president andCEO Charles Werhane shares his expectations
for the 2017 LIHTC market with Affordable Housing Finance.

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