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The National Association of REALTORS® achieved an important first step yesterday in the first leg of the marathon that is tax reform.
In an email to NAR members, the association's advocacy team released an analysis of a draft bill released by Republicans on the House Ways and Means Committee.
Calling it a "strong opening bid for our advocacy priorities," NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn, said: "This draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent. These are all measures we have worked tirelessly to advocate for on behalf of our members."
The draft bill contains "significant wins for the real estate sector," NAR says, including
- An enhanced small-business tax deduction
- A strengthened state and local tax (SALT) deduction
- Protections for the mortgage interest deduction (MID).
- No changes to the 1031 or to so-called "Business SALT" deductions for real estate professionals.
The bill would also makes the current lower individual tax rates permanent and increase the child tax credit, which NAR says "could help increase homeownership access for more American families." Among other pro-business provisions, it would renew the opportunity zones program with new incentives and include key provisions to support development of affordable housing using the low-income housing tax credit.
NAR also issued a news release Monday outlining its analysis and said its policy team would continue to go through the bill and provide updates as warranted.
"While the early details are overwhelmingly positive for the real estate economy and small businesses, I would caution that this is just the first draft," McGahn said. "We will continue to engage directly with congressional leadership, key committees, and other policymakers to ensure that housing affordability and support for small businesses remain top priorities in these negotiations. At a time when we face a historic shortage in housing supply, it is essential that this legislation does not worsen the affordability crisis. With real estate accounting for nearly one-fifth of the U.S. economy, a strong real estate sector is vital to the health of the broader economy."
