July 8, 2025: Reconciliation Tax Legislation: What’s In, What’s Out

When President Donald Trump signed multi-trillion-dollar reconciliation legislation July 4, it included provisions to expand the low-income housing tax credit (LIHTC), make permanent the opportunity zones (OZ) incentive and new markets tax credit (NMTC) and sharply pare back clean energy tax incentives. On this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, discusses the bill's provisions with Peter Lawrence, Novogradac's chief public policy officer; Jason Watkins, CPA; and Tony Grappone, CPA. They begin by looking at how the legislation was passed in Congress, then dive into the specific provisions for the LIHTC, OZs and NMTCs before taking a deeper dive into how clean energy tax credits were cut back. They then look at some cross-cutting provisions that will affect community development tax credits and what provisions failed to make it into the final reconciliation bill.