On November 10, the Senate Finance Committee introduced its version of tax reform retaining the 4% and 9% Tax Credits and tax-exempt multifamily private activity bonds. It also preserves the 2018-2019 authorized NMTC allocation rounds. Other things the Senate bill includes:
- Repeal of the 10% non-historic rehabilitation tax credit (HTC)
- Reduction of the 20% HTC to 10%.
- Reduction of residential rental and nonresidential real estate depreciation to 25 years if partnerships do not elect out of the limitation on interest deductibility.
- Delay cutting the top corporate tax rate to 20% to 2019 which is a break from the House proposal of implementing the lower rate immediately.
- Full repeal of the state and local tax deduction and would keep the mortgage interest deduction largely intact for mortgages up to $1 million.
- Repeal of the alternative minimum tax.
The Senate Finance Committee began its mark-up on November 13. Until the mark-up concludes, the Committee will focus on amendments with the goal of reporting the bill to the full Senate by the end of the week.