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Biden Administration Releases $6 Trillion FY 2022 Budget Request

The Biden Administration released a summary, fact sheet and Treasury’s Greenbook of tax proposals on President Joe Biden’s proposed $6 trillion budget for fiscal year (FY) 2022. The FY 2022 budget request incorporates not only annual discretionary spending and estimates of mandatory spending, but also the American Jobs Plan and American Families Plan, the administration’s key components of its infrastructure priorities.

The Biden administration requests $1.67 trillion in discretionary spending, $754 billion for defense and $913 billion for nondefense, the first such request where nondefense exceeded defense in recent history. Nondefense spending includes a request of $68.7 billion for the U.S. Department of Housing and Urban Development (HUD), a $9.1 billion or 15% increase over FY 2021 appropriations of $59.6 billion, and $330 million for the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund, a $60 million or 22% increase from 2021. A subsequent blogpost will detail the proposed FY 2022 HUD and CDFI Fund program funding levels.

Treasury’s FY 2022 Greenbook includes details of tax proposals previously announced by the White House, Treasury, and HUD as part of the American Jobs Plan and the American Families Plan. The community development and clean energy proposals include:

  • Expansion of the low-income housing tax credit (LIHTC),
  • Creation of a neighborhood homes investment tax credit,
  • Permanence for the new markets tax credit (NMTC),
  • Authorization of new tax-exempt bonds for schools and infrastructure,
  • Extensions and enhancements of the renewable energy production and investment tax credits (RETC), and
  • Extensions and modifications of the energy efficiency tax incentives.

In addition to these tax expenditure proposals, the Greenbook also provided details on corporate and individual revenue raising proposals, which could affect the community development and clean energy tax incentives. Highlights of those revenue raising proposals include:


  • Increasing corporate rate from 21% to 28%,
  • Reforming and increasing global minimum tax from 10.5% to 21%,
  • Replacing base erosion and anti-abuse tax (BEAT) with stopping harmful inversions and ending low-tax developments (SHIELD) rule, and
  • Establishing new 15% minimum “book” tax for large corporations.


  • Increasing top marginal tax rate from 37% to 39.6% for 2022-25,
  • Reforming capital income taxation, and
  • Sharply limiting deferral of gain from 1031 like-kind exchanges.

In total, all of the FY 2022 Greenbook proposals would raise a net $2.39 trillion over 2022-31, which would offset the cost of the spending proposals in the American Jobs and Families Plan. More specifically, the American Jobs Plan Greenbook proposals, where the community development and clean energy tax incentive proposals are included, would raise a net $1.67 trillion over 2022-31, while the American Families Plan Greenbook proposals would raise a net $722 billion over 2022-31.

Read more from Novogradac here>>>