realestate

Senate Approves Landmark Tax Legislation Favoring Property Interests

NAR secures top legislative priorities to support homeownership and boost real estate economy.

T
he U.S. Senate has passed a sweeping tax reform bill, which includes major real estate provisions championed by the National Association of REALTORS (NAR). The House of Representatives previously approved its version of the bill on May 22, and it is expected to be finalized in the coming days before being sent to the president for signature. NAR successfully secured its top five priorities in the final package, along with several other provisions that support homeownership and strengthen the real estate economy.

    "We've worked tirelessly to educate Congress on the value of these real estate provisions through original research, analysis, and polling," says NAR Executive Vice President Shannon McGahn. "Congressional leaders were receptive to our message, and we're grateful for their support."

    NAR's top five priorities include:

    * A permanent extension of lower individual tax rates

    * An enhanced and permanent qualified business income deduction (Section 199A)

    * A temporary quadrupling of the state and local tax (SALT) deduction cap

    * Protection for business SALT deductions and 1031 like-kind exchanges

    * A permanent extension of the mortgage interest deduction

    "These provisions are essential to supporting first-time and first-generation buyers, strengthening investment in housing supply, and protecting existing homeowners," McGahn says. "Real estate makes up nearly one-fifth of the entire U.S. economy, and we made sure policymakers understood that homeownership is key to building wealth and a strong middle class."

    Additional provisions championed by NAR include:

    * A permanent increase in the Low-Income Housing Tax Credit (LIHTC) to support affordable housing development

    * An increased Child Tax Credit of $2,200, with inflation indexing

    * A permanent estate and gift tax threshold set at $15 million (inflation-adjusted)

    * No increase to the top individual tax rate

    * Restoration of key business provisions, including full expensing of research and development and bonus depreciation

    NAR polling found that 80% of voters support targeted investment incentives in underserved communities, such as Opportunity Zones. The organization also commissioned a national survey in May, which found overwhelming public backing for the real estate provisions in the bill.

    "We're proud to have played a critical role in building support and momentum for these provisions," McGahn says. "Our members, working together, packed a powerful message that policymakers couldn't ignore."

US Senate passes landmark tax legislation benefiting property owners nationwide.