Grows for Tax Credit and Bond Increases Legislation increasing federal private activity bond and the Low Income Housing Tax Credit caps continues to gain co-sponsors in Congress. The bill would also index this cap to inflation.
States use the bonds to finance low income housing, economic development and educational programs.
The federal legislation does not specify how the states must allocate volume cap from among eligible purposes. The bond bill currently has 239 co-sponsors in the House and 31 in the Senate. Senator Arlen Specter s staff indicated that he will be announcing his support for this legislation soon. Nationally, the tax credit program is the principal way in which affordable rental housing is financed.