As Nevada grapples with a massive shortage of affordable housing, state officials fear federal tax reform has stymied a long-standing funding resource. The free money train has derailed.
The Las Vegas Review-Journal reports that since 1986 the federal Low-Income Housing Tax Credit program has allowed private investors to reduce their federal tax liability if they help pay for the creation or rehabilitation of affordable rental housing. Last year the program financed nearly 1,150 homes and apartments in Nevada and capped their rents for at least 30 years.
“It’s by far the single-biggest program across the country to generate affordable housing units,” Nevada Housing Division Chief Financial Officer Michael Holliday said.
Right, free money is always good. No argument there.
The program lost some effectiveness with the December passage of the Tax Cuts and Jobs Act, which lowered the corporate tax rate and decreased demand for the credits, Holliday said.
Apparently he’d rather you pay higher taxes than give up his free money.