After days of contentious negotiations, on February 13, Congress passed a $789 billion economic stimulus package.   President Obama signed the measure into law on Tuesday.  Once again, the measure represents a tremendous victory for the apartment industry and for NMHC's efforts to advocate a more balanced housing policy. 

The measure includes several provisions with respect to the Low-Income Housing Tax Credit (LIHTC), energy efficiency incentives, cancellation of indebtedness, bonus depreciation and more that may be helpful to apartment firms.  Importantly, it includes a one-year Alternative Minimum Tax (AMT) patch.  This will reduce pressure on lawmakers to increase taxes on carried interest profits, something NMHC/NAA have helped defeat the past two years, as the carried interest provision is often cited as one way to pay for AMT relief.

The final legislation stripped out a $15,000 homebuyer tax credit for all purchasers that was included in the Senate version.  Instead, the measure includes an $8,000 tax credit limited to first-time homebuyers making less than $95,000 ($170,000 for joint filers).  It expires at the end of the year. 

While we realize that housing is a big problem and must be fixed, we successfully convinced lawmakers that the Senate tax proposal was too costly and not likely to be successful.  In round-the-clock communications with lawmakers and their key staff contacts, we encouraged Congress to focus on appropriating money to put people to work on infrastructure and other economic needs; helping people who have lost their jobs so they can pay their rent; helping LIHTC properties; and providing money to states to forestall tax increases. 

• An NMHC-produced chart summarizing the apartment-related elements of the package is available here.
  
  
• Download the overview prepared by Speaker Pelosi's office here.
  
  
• Download the tax title text here.