Gap in Housing Tax Subsidies Has Narrowed in Recent Budgets

As is the case every year, and required by the Congressional Budget Act of 1974, next month the president will release his estimates of the loss in federal tax revenue that is attributable to provisions in the tax law that allow a special exclusion, exemption or deduction from gross income, or that provide a special credit, a preferential tax rate or a deferral of liability.

Estimates of loss in federal tax revenue for the five years of 2013-2017 reveal that homeownership subsidies will outstrip rental subsidies by more than 19 to 1.
For the five-year period 2013-2017, federal tax expenditures for homeownership subsidies total of $927.2 billion in subsidies for homeowners.

By comparison, for the same period 2013-2017, the federal tax expenditures that subsidize rental housing using the cash basis measure include $39.3 billion for low-income housing tax credits, and $7.7 billion in interest exclusion on rental housing bonds, generating a considerably smaller total of $47 billion in rental housing subsidies.

–  Novogradac Journal of Tax Credits


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