T
he National Association of REALTORS achieved a significant milestone in the ongoing tax reform process. In an email to members, NAR's advocacy team analyzed a draft bill released by Republicans on the House Ways and Means Committee. The association hailed it as a "strong opening bid" for their key priorities, including making lower income tax brackets permanent.
The draft bill contains several provisions that benefit the real estate sector, such as:
* 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 "Business SALT" deductions for real estate professionals
The bill also makes permanent the current lower individual tax rates and increases the child tax credit, which could help more American families access homeownership. Additionally, it renews the opportunity zones program with new incentives and includes provisions to support affordable housing development using the low-income housing tax credit.
NAR's Executive Vice President Shannon McGahn cautioned that this is just the first draft and emphasized the importance of continued engagement with congressional leadership to ensure that housing affordability remains a top priority. 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.
