AUGUSTA, Maine — A provision in the U.S. House Republican tax bill could eliminate funding for hundreds of new low-income apartments in Maine.
The state’s congressional delegation is rallying for an obscure program called private activity bonds that were eliminated in the House’s version of the federal tax reform bill. The Portland Press Herald reports private activity bonds allow nonprofits to sell tax free interest bonds to pay for capital improvements to infrastructure and to fund student loans.
Maine housing advocates say the loss of the bond program could reduce the amount of affordable housing in Maine by almost 50 percent.
The bond program is untouched in the U.S. Senate version of the tax bill. Currently, Congress is negotiating to resolve differences between the tax overhaul bills.