ARTICLE
The U.S. House of Representatives narrowly passed House Resolution 1 last week, a sweeping tax package with several provisions impacting the housing industry. Among the most notable wins for HBA members are the preservation of the full property tax deduction for businesses, an expansion of the Low-Income Housing Tax Credit, a permanent extension of the 20% pass-through business income deduction (now increased to 23%), and the restoration of 100% bonus depreciation. The bill also raises the individual SALT deduction cap from $10,000 to $40,000 for households earning under $500,000—a key issue for builders in high-cost or high State income tax regions, like Oregon. However, the legislation also proposes to eliminate several federal energy tax credits, including the Section 45L New Energy Efficient Home Tax Credit and Section 25D Residential Clean Energy Credit, years ahead of their scheduled sunset dates. That said, the bill includes several controversial provisions, and its future in the Senate remains uncertain. Senate leadership has already indicated an interest in making significant changes to the legislation. Click here to read the NAHB report.
The U.S. House of Representatives narrowly passed House Resolution 1 last week, a sweeping tax package with several provisions impacting the housing industry. Among the most notable wins for HBA members are the preservation of the full property tax deduction for businesses, an expansion of the Low-Income Housing Tax Credit, a permanent extension of the 20% pass-through business income deduction (now increased to 23%), and the restoration of 100% bonus depreciation.
The bill also raises the individual SALT deduction cap from $10,000 to $40,000 for households earning under $500,000—a key issue for builders in high-cost or high State income tax regions, like Oregon. However, the legislation also proposes to eliminate several federal energy tax credits, including the Section 45L New Energy Efficient Home Tax Credit and Section 25D Residential Clean Energy Credit, years ahead of their scheduled sunset dates.
That said, the bill includes several controversial provisions, and its future in the Senate remains uncertain. Senate leadership has already indicated an interest in making significant changes to the legislation. Click here to read the NAHB report.