Citigroup, Inc. · NYSE:C
Citigroup — Novogradac Washington Wire Webinar (November 2017)
22 slides from Citigroup's conference presentation, Nov 10, 2017
Slide 1: The Tax Reform Plan: How Does it Affect Affordable Housing?
Market Insights on Community Development Citi Community Capital The Tax Reform Plan How Does it Affect Affordable Housing? Michael Novogradac David Gasson Novogradac & Company LLP Boston Capital Managing Partner Vice President, Director of Corporate Communications Richard Gerwitz John Heppolette Cit
Slide 2: Your Webinar Speakers
Your Webinar Speakers Michael J. Novogradac, CPA David S. Gasson, Boston Capital, Vice President Novogradac & Company LLP, Managing Partner Housing Advisory Group, Executive Director Michael Novogradac has more than 30 years of David Gasson is Vice President and Director of experience specializing i
Slide 3: Agenda
Agenda To ask a question, email AskCitiCommunityCapital@citi.com To ask a question, email AskCitiCommunityCapital@citi.com now 3
Slide 4: Recent Presidents Who Had Major Tax Bills the Year of their Inauguration
Recent Presidents Who Had Major Tax Bills the Year of their Inauguration ? CARTER REAGAN BUSH CLINTON BUSH OBAMA TRUMP To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 5: Tax Cuts and Jobs Act
INTRODUCED NOVEMBER 2, 2017 “TAX CUTS AND JOBS ACT” To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 6: Tax Cuts and Jobs Act: Business
Tax Cuts and Jobs Act Business 20% 25% FULL Top Pass-through Expensing eligible corporate rate 2017-2022 For 30% of business effective 9/27/2017, not applied rate income to buildings To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 7: Tax Cuts and Jobs Act Business
Tax Cuts and Jobs Act Business • LIHTC and R&D explicitly retained – Tax exemption for private activity bonds repealed – effective 12/31/17 – Historic Tax Credits and New Markets Tax Credits Terminated • Deduction of interest expense limited to 30 percent of business’s adjusted taxable income – Not
Slide 8: Tax Cuts and Jobs Act Individual
Tax Cuts and Jobs Act Individual • Individual rates of 12%, 25%, 35% and 39.6% • Mortgage interest deduction retained but capped at $500,000 • Charitable giving deduction retained but limited • Municipal bond income exemption retained • State & local property tax deduction retained, state and local
Slide 9: Senate Tax Reform Bill
Senate Tax Reform Bill SENATE TAX REFORM BILL To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 10: Affordable Housing Credit Improvement Act
More LIHTCs via Affordable Housing Credit Improvement Act 50 percent increase CANTWELL HATCH Income- averaging Minimum 4 percent rate TIBERI NEAL To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 11: Affordable Housing Credit Improvement Act
More LIHTCs via Affordable Housing Credit Improvement Act 50 percent increase CANTWELL HATCH Income- averaging Minimum 4 percent rate TIBERI NEAL To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 12: Affordable Housing Credit Improvement Act
More LIHTCs via Affordable Housing Credit Improvement Act 50 percent increase CANTWELL HATCH Income- averaging Minimum 4 percent rate TIBERI NEAL To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 13: Affordable Housing Credit Improvement Act
More LIHTCs via Affordable Housing Credit Improvement Act Note these assumptions: • Assumed that states will increase Approximately 131,000 more units over 10 years their tax-exempt bond issuance for 50 percent multifamily by 25% increase • Assumed the absolute amount of soft subsidies going to tax
Slide 14: Affordable Housing Credit Improvement Act: Additional Resources
More LIHTCs via Affordable Housing Credit Improvement Act Additional Resources • Give states discretion to provide 30% basis boost for bond- financed projects • Increase DDA designation from 20 to 30% • Repeal QCT population cap • Relocation costs included in eligible basis • No basis reduction for
Slide 15: Affordable Housing Credit Improvement Act: Financial Feasibility
More LIHTCs via Affordable Housing Credit Improvement Act Financial Feasibility • 50% basis boost for ELI units • Modify student occupancy rules • Codify increased tenant income guidance • Modify 10-year rule (limits apply to acquisition basis) • Adopt uniform income eligibility for rural projects T
Slide 16: Affordable Housing Credit Improvement Act: Other
More LIHTCs via Affordable Housing Credit Improvement Act Other • Modify voucher rent-setting rule in LIHTC • Clarify the community revitalization plan • Prohibit local approval or contribution requirements • Add selection criteria for Native American areas • Restriction of planned foreclosures • Cl
Slide 17: The Plan
The Plan Nov. 2 Dec. 8 House tax reform CR expires bill released Week of Nov. 6 W&M markup 11/6-11/9 Dec. 14/15 Currently Nov. 9 scheduled to Expected tentative release of adjourn for the Senate tax reform bill holidays Tentative week of Nov 13 Senate Finance Committee considers tax reform Full Sena
Slide 18: Everyone has a plan… until they get punched in the mouth.
Everyone has a plan… until they get punched in the mouth. To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 19: The Plan
The Plan Nov. 2 Dec. 8 House tax reform CR expires bill released Week of Nov. 6 W&M markup 11/6-11/9 Dec. 14/15 Currently Nov. 9 scheduled to Expected tentative release of adjourn for the Senate tax reform bill holidays Tentative week of Nov 13 Senate Finance Committee considers tax reform Full Sena
Slide 20: Novogradac Tax Reform Resource Center
Novogradac Tax Reform Resource Center www.taxreformresourcecenter.com To ask a question, email AskCitiCommunityCapital@citi.com now
Slide 21: Thank You
Thank You Thank you for your participation • To ask a question – email AskCitiCommunityCapital@citi.com – Follow instructions from the Operator - Press *1 for the operator to open your line. This will enter you into the queue to ask a question • The recording will available within the next 24 hours
Slide 22: IRS Circular 230 Disclosure
IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoiding any tax penalties and (ii) may have bee
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