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Efforts Continue in Support of Bush Growth Package

Continuing its efforts in support of President Bush’s economic growth package, NAHB last week outlined several approaches that might enhance the plan so that all segments of the housing sector would continue to help lead the economy forward.

On March 18, NAHB First Vice President Bobby Rayburn appeared before the House Oversight and Investigations Subcommittee of the Financial Services Committee to propose exploring ways to ensure that low-income housing programs maintain their effectiveness.

Rayburn said that a number of approaches were worth further study to avoid any potential harm to the Low-Income Housing Tax Credit. Generating more than 115,000 rental units annually, the credit is the nation’s leading affordable housing production program.

Among proposals he said were worth further consideration:

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• Treating corporate earnings from the credit as taxed earnings that are not further taxed at the shareholder level
• Removing or increasing the current limit on the amount of the credits that investors can use
• Removing the credit from items included in calculating the Alternative Minimum Tax
• Increasing the state volume on the credits, which is currently set at $1.75 per capita
• Removing credit limits on individual projects, which currently stand at 4% or 9% of total development costs, depending on the type of transaction

“We believe the President’s economic proposal is good for the economy and good for housing,” he said. “Enacting any of these approaches would offset any unintended consequences to low-income housing programs and the families who depend upon them.”
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