Eastern Wisconsin’s representative in Congress has introduced a new bill aimed at repealing the Low-Income Housing Tax Credit.
Currently, LIHTC provides tax credits to developers to subsidize the construction and rehabilitation of affordable housing units, which cover around 70% of a project’s cost.
However, rather than benefiting tenants, Grothman says the program has “become a cash grab for developers and banks” and claimed eliminating the program would “save taxpayers a staggering $69.1 billion over a ten-year period.”
Adam Michel, the Director of Tax Policy Studies at the Cato Institute, called it a “textbook case of good intentions gone wrong. After nearly four decades and billions in federal subsidies, the Low-Income Housing Tax Credit has done more for banks and developers than for struggling renters.”
The Low-Income Housing Tax Credit Elimination Act is cosponsored by fellow Republican Congressman Paul Gosar of Arizona.
