[Congressional Record (Bound Edition), Volume 155 (2009), Part 24]
[Senate]
[Pages 33148-33149]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             TAX EXTENDERS

  Ms. LANDRIEU. Mr. President, as the Senate moves forward toward 
ending the debate on health care reform and recessing until the New 
Year, we leave some important legislation unfinished, including 
legislation that would extend a number of tax provisions that are set 
to expire on December 31 of this year. The House has already acted to 
extend a number of these expiring tax provisions, and I urge my 
colleagues on the Senate Finance Committee to work with Senator Baucus 
and Senator Grassley to take up this legislation immediately when we 
come back from recess.
  As part of this effort, I urge my colleagues to extend tax 
provisions, some of which are set to expire this year, that were 
enacted by Congress to aid the recovery of the gulf coast after the 
2005 hurricane season. Hurricane Katrina devastated the gulf coast and 
recovery efforts to date have been delayed because of a continuing 
shortage of skilled construction workers, limited financing, and 
sustained increases in construction and insurance costs. These 
challenges have been compounded by the current economic crisis.
  By extending a number of the tax provisions that were enacted as part 
of the Gulf Opportunity Zone legislation that Congress passed in 2005, 
a number of important projects, including low-income housing projects, 
will have adequate time to overcome development

[[Page 33149]]

challenges, and create more opportunities for displaced residents 
looking to return after the 2005 storms. This will result in more jobs 
and a faster recovery for the gulf coast. If Congress fails to act to 
extend the tax provisions of the GO Zone legislation, including the 
placed-in-service provision of the GO Zone low-income housing tax 
credit, at least 77 low-income housing projects in the Gulf Coast are 
at risk of not being completed.
  Mr. President, I ask unanimous consent that a letter I wrote 
requesting an extension of the placed-in-service provision of the GO 
Zone low-income housing tax credit be included in any tax extenders 
legislation be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:


                                                  U.S. Senate,

                                 Washington, DC, December 9, 2009.
     Hon. Max Baucus,
     Chair, Senate Committee on Finance, Washington, DC.
     Hon. Charles Grassley,
     Ranking Member, Senate Committee on Finance, Washington, DC.
       Dear Chairman Baucus and Ranking Member Grassley: We write 
     to request your support for extending the placed-in-service 
     date for affordable housing developments in the Gulf 
     Opportunity Zone.
       As you know, GO Zone low income housing tax credits have 
     been vital in our effort to restoring the number of 
     affordable housing units along the Gulf Coast. Tough economic 
     conditions, however, have prevented many of these projects 
     from moving forward at the pace necessary to meet the placed-
     in-service deadline of January 1, 2011.
       Together this bipartisan group of Gulf Coast senators has 
     been working to extend this deadline for two years, to allow 
     77 low income housing projects in Louisiana, Mississippi, and 
     Alabama to move forward and creating more than 13,000 
     construction-related jobs. This legislation would not 
     allocate any new credits--it would merely provide additional 
     time to take full advantage of the credits that were issued 
     in the aftermath of the 2005 hurricanes.
       Extending the place-in-service deadline is critical to 
     improving the availability of affordable housing along the 
     Gulf Coast. FEMA estimates that the 2005 storms destroyed or 
     heavily damaged 82,000 rental units, of which 54,000 served 
     low-income populations. During his August 27 visit to New 
     Orleans, HUD Secretary Shaun Donovan emphasized the need to 
     revitalize this housing and highlighted the importance of a 
     placed-in-service extension.
       With an extension, developers will be able to attract 
     investors to their proposed developments, have adequate time 
     to overcome financial barriers triggered by the current 
     economic crisis, and create more opportunities for residents 
     displaced by the 2005 hurricanes to return home. Without an 
     extension, more than 6,000 units are unlikely to be 
     completed. The loss of more than $1 billion in economic 
     activity--to the construction industry, suppliers, 
     professionals, developers and others--would be a major blow 
     to our states and the region.
       Your initiative in helping the Gulf Coast to recover has 
     been invaluable. It is our hope that the Senate Finance 
     Committee will continue this leadership by including a 
     placed-in-service extension in a tax extenders bill or other 
     legislation this year. We appreciate your consideration of 
     this request.
           Sincerely,
     Mary L. Landrieu,
       United States Senator.
     David B. Vitter,
       United States Senator.
     Roger F. Wicker,
       United States Senator.
     Thad Cochran,
       United States Senator.

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