Tax News

CCH (cch.taxgroup.com) reports:

  On May 8, the House overwhelmingly approved the tax relief measures included in the American Housing Rescue and Foreclosure Prevention Bill of 2008 (HR 3221). By a vote of 322 to 94, the House approved an amendment to HR 3221 that included provisions of Ways and Means Committee Chairman Charles B. Rangel's, D-N.Y., Housing Assistance Tax Bill of 2008 (HR 5720). Rangel said the bill includes tax incentives to help first-time homebuyers as well as taxpayers struggling to keep their homes from foreclosure. "Congress has acted to strengthen the housing market and provide relief for those struggling in the current economic downturn," Rangel said.

  The measure includes tax provisions to boost the construction of affordable, multifamily housing through changes to the low income housing tax credit and tax exempt bond programs. In addition to the tax provisions that passed Ways and Means in late April, Democrats included a provision to provide better coordination between housing tax credits, multifamily housing bond programs and other housing programs under the Department of Housing and Urban Development and the Rural Housing Service.

Veto Threat

  President Bush has threatened to veto the housing package in its current form, contending the bill amounts to a bailout for lenders and speculators. "Congress should send the president the legislation he called for --to modernize the Federal Housing Administration and reform oversight of Fannie Mae and Freddie Mac," White House Deputy Press Secretary Tony Fratto said on May 8.

  By Stephen K. Cooper and Paula Cruickshank, CCH News Staff

House Ways and Means Committee Release: House Passes Bipartisan Housing Package