Assistant Secretary for Tax Policy Nominee Discusses LIHTC Program During Confirmation Hearing

On July 18, the Senate Finance Committee held a hearing to consider the nomination of David J. Kautter as Assistant Secretary for Tax Policy of the Treasury Department. Senator Maria Cantwell (D-WA), who introduced The Affordable Housing Credit Improvement Act to expand and strengthen the LIHTC, pressed the nominee for a commitment to the program. Senator Cantwell noted a growing national affordable housing crisis. She added that the low-income housing tax credit drives 90 percent of affordable housing supply and “if you don’t increase it, we are not going to increase the supply.”

Kautter told the senator that “[I]t may be possible to make the Low Income Housing Tax Credit even more effective and efficient than it is today, and if confirmed, I look forward to working with you and your staff to accomplish this.” He added that he understands the goal of the LIHTC, thinks it is a worthwhile goal, and that the program is one we should continue.

If confirmed, Kautter will be one of the key officials working on tax policy on behalf of the administration, along with Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn.