NAHB Leaders Hold Productive Talks with Lawmakers on Tax Reform

Filed in Capitol Hill by on December 6, 2017 0 Comments

NAHB Chairman Granger MacDonald stands in front of the U.S. Capitol.

NAHB Chairman Granger MacDonald and CEO Jerry Howard met with key members of Congress today to push for the association’s housing priorities as the tax reform process moves to a House-Senate conference committee.

The meetings were productive, and NAHB remains optimistic about the key housing elements of the final conference report.

MacDonald and Howard met with House Ways and Means Committee Chairman and House Conference Tax Chair Kevin Brady (R-Texas), and held additional meetings with Sen. Pat Roberts (R-Kan.) and Reps. Richard Neal (D-Mass.) and Tom Reed (D-N.Y.).

In what would be an important victory for NAHB, lawmakers expressed support for retaining private activity bonds (PABs) in the final conference report. The House-passed tax bill would eliminate PABs, while the Senate-approved legislation keeps PABs.

Eliminating PABs would translate to a reduction of as much as two-thirds of the current production of affordable rental housing provided by the Low-Income Housing Tax Credit program – or a loss of about 788,000 to 881,000 affordable rental homes over 10 years, according to analysis from Novogradac & Company.

In another important development, a new proposal is being circulated in which taxpayers could choose between deducting either property taxes or their state and local income taxes.

Currently, both the House and Senate bills would allow for a deduction of up to $10,000 only on property taxes. The proposal being floated could increase that $10,000 cap.

Discussions were also held regarding the cap on the mortgage interest deduction. The Senate leaves the cap at $1 million while the House bill would reduce it to $500,000. NAHB will continue to push for the $1 million cap.

The process is moving rapidly and a final bill could be announced as early as next week. NAHB will continue to fight for the best deal that will help small businesses and promote homeownership and rental housing opportunities.

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