The Senate failed to advance a major tax bill that would have expanded the low-income housing tax credit (LIHTC) program.
Senate Republicans blocked the $79 billion legislation on a 48-44 vote. Sixty votes were required to move the legislation forward.
“Though opposition to the Tax Relief for American Families and Workers Act stemmed from issues unrelated to housing, the Senate has missed an opportunity to take long overdue action on addressing the nation’s persistent and growing housing crisis,” said Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition. “Provisions in the bill would finance over 200,000 more affordable rental homes than otherwise possible.”
“Overwhelmingly bipartisan House passage of the Tax Relief for American Families and Workers Act in January, along with strong bipartisan co-sponsorship of the underlying Affordable Housing Credit Improvement Act, sends a clear message with regard to the urgent need and momentum behind this critical legislation,” Cadik continued. “We will continue to seek opportunities to advance the housing credit provisions in any viable legislative vehicles in the future.”
Tax legislation will likely be a major focus for the next Congress.
Although the Tax Relief for American Families and Workers Act had bipartisan support and passed the House 357-70, it was not expected to get through the Senate.
Rep. Judy Chu, a Democrat from California who supported the legislation in the House, criticized Senate members for blocking the bill.
“Senate Republicans brazenly showed today they care more about playing politics than delivering tax relief for American families,” she said in a statement. “Justifying their vote with false and misleading rhetoric, they are already on record with the real reason for today’s vote: denying the Biden-Harris administration a ‘win.’”
“Instead of lifting half a million children out of poverty and increasing child tax credit benefits for 16 million children, they chose to play politics. Instead of enhancing the low-income housing tax credit to create more affordable housing units in high-cost areas, they chose to play politics,” Chu said. “Instead of implementing an income tax agreement with Taiwan to promote mutual investment and unleash economics benefits for us and a leading democratic partner in Asia, they chose to play politics.”
