WASHINGTON, D.C. - The House Committee on Ways and Means today passed the Housing Assistance Tax Act of 2008, by a bipartisan vote of 35-5. The legislation, introduced by Chairman Charles B. Rangel, would provide tax credits to first-time homebuyers, improve access to low-income housing, allow families to deduct property taxes, and includes other provisions.
The Housing Assistance Tax Act of 2008 is designed to complement efforts in the House Committee on Financial Services to address the growing rate of foreclosures nationwide.
"I am pleased that the Committee offered such strong, bipartisan support for this housing tax package designed to help families cope with the housing crisis," said Ways and Means Committee Chairman Charles B. Rangel (D-NY). "There is no question that Democrats and Republicans alike share the same goal - to give the American people some confidence that Congress is concerned about the economy and willing to come together to get things done. The legislation we passed today will help make it easier for families to purchase homes and take advantage of tax credits for affordable housing.
"The House Financial Services Committee has also gone to great lengths to find ways to help families avoid foreclosure and I believe our efforts dovetail nicely with legislation pending before their Committee. I expect these bills can continue to receive broad, bipartisan support when they are considered by the full House of Representatives in the near future."
The Committee made three modifications to the underlying legislation before passing the final bill. The committee adopted the following changes by unanimous consent:
* Increase the point at which the first-time home buyer credit begins to phase out for married individuals filing jointly from $110,000 to $140,000.
* Strike the fixed 9% credit for low income housing and thereby restoring the current law floating tax credit while giving developers greater certainty as to the level of credit by creating a credit floor. The floor is the 12 month average of the credit from the previous calendar year.
* Make repeal of the low income housing tax credit recapture bond provision temporary. The requirement to post a tax credit recapture bond will be suspended for 5 years. Based upon compliance data from the IRS, Congress will then determine whether it is advisable to repeal the requirement permanently.
