Daily Tax Update - May 6, 2008

HOUSE TO CONSIDER HOUSING STIMULUS BILL THIS WEEK:  House floor action on an $11.16 billion housing tax bill is expected by the end of this week. The “Housing Assistance Tax Act” includes a tax credit for first-time home buyers and a standard deduction for nonitemizers' property taxes, along with more funding for low-income housing tax credits, $10 billion in extra mortgage revenue bond authority, and modifies rules relating to real estate investment trusts.

The House bill is offset by:

• a requirement that securities brokers report cost bases for sales of stock and other investments;
• a 20 percent reduction in the worldwide interest expense allocation benefits taxpayers can receive in the first year they elect to claim the benefit; and
• a one-year delay in the implementation of the worldwide interest allocation benefit.

The Senate passed its housing stimulus bill in April which is not offset and includes a net operating loss carryback provision and a set of renewable-energy tax incentives.

TAX BILLS INTRODUCED MAY 5TH:
H.R.5962: To amend the Internal Revenue Code of 1986 to provide temporary housing related tax relief for individuals, and for other purposes.
Sponsor: Rep Diaz-Balart, Mario [FL-25] (introduced 5/5/2008)      Cosponsors (6)

H.R.5967: To amend the Internal Revenue Code of 1986 to provide for reallocation of abandoned private activity bond volume cap.
Sponsor: Rep Weiner, Anthony D. [NY-9] (introduced 5/5/2008)      Cosponsors (None)

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