The most recent version of Tax Cuts and Jobs Act tax reform bill has been released and is expected to come to a vote in the near future. Many in the real estate development community are asking how this will impact existing federal programs which support the redevelopment and revitalizations of neighborhoods across America like Toledo, Ohio. Fortunately, organizations like Heritage Ohio and LOCUS and developers like Crane Development worked hart to make their voices heard to members of Congress and many vital programs were retained. The final legislation will:
- Retain Low-Income Housing Tax Credits (LIHTC)
- Maintain tax-exempt private activity bonds (PABs), including multifamily bonds
- Preserve 20% Historic Tax Credits
- Retain New Markets Tax Credits
- Reduce the Corporate Tax Rate to 21%
LOCUS recently released a more in-depth overview of how the tax reform bill impacts developers and can be viewed below.