GOP Tax Plan Kills Housing and Infrastructure Investment, Would Stall Local Projects in North Carolina
WASHINGTON, D.C. (Nov. 9, 2017) – Congressman David Price (D-NC) issued the following news release on efforts to eliminate key housing and infrastructure investments in the House GOP tax plan. Congressman Price serves as Ranking Member on the Transportation, Housing and Urban Development (THUD) Appropriations subcommittee.
As I said recently on the House floor, it has become increasingly obvious that the tax plan proposed by House Republicans is a sham—slashing taxes for the super-rich and large corporations at the expense of the middle class. It would also repeal many important provisions that provide tax relief to working families such as the deductions for student loan interest, out-of-pocket medical expenses, and state and local taxes.
What hasn’t received as much attention is the repeal of tax-exempt Private Activity Bonds (PABs), which are used by state and local governments and private partners to finance infrastructure projects including highways, airports, hospitals, water treatment facilities, and affordable housing developments. According to the North Carolina Housing Coalition, repeal of PABs would result in a $1 billion loss for affordable housing in our state, including $700 million in multifamily development currently underway and $300 million in mortgage revenue bonds that assist first-time homebuyers. Some notable examples of PAB projects include:
Terminal 2 upgrade and improvements at RDU International Airport
- New affordable housing projects for families and seniors like The Bluffs at Walnut Creek in Raleigh (198 units), Briar Green Apartments in Durham (200 units), Capital Towers Apartments in Raleigh (298 units), and Washington Terrace in Raleigh (162 units)
In addition, the Republican tax plan would repeal the Historic Tax Credit (HTC) and the New Markets Tax Credit (NMTC), both of which incentivize private investment that can revitalize aging buildings and offer economic opportunity to distressed urban and rural communities. Public and private entities often use HTC, NMTC, or a combination of both to make projects a reality. Notable examples in North Carolina include:
- American Tobacco Campus in downtown Durham
- Golden Belt redevelopment in Durham
- Revolution Mill redevelopment in Greensboro
At a time when federal funding for infrastructure and housing is continually squeezed, the last thing Congress should do is push through a flawed tax plan that would hurt working families, hamstring our state and local governments, and destroy our ability to leverage private investment for projects that benefit the public.