Senate Approves Tax Reform Bill
Senate Republicans early this morning narrowly approved the Tax Cuts and Jobs Act (H.R. 1), legislation that would revamp the nation’s tax code.
While NAHB opposes the House-passed version of H.R. 1, the Senate bill represents a step in the right direction.
Unlike the House bill, the Senate tax reform package would:
- Retain private activity bonds, a key tool for the production of affordable housing;
- Keep the mortgage interest deduction cap at $1 million;
- Retain the mortgage interest deduction for second homes; and
- Exclude the punitive income phase-out proposed by the House as part of changes to the capital gains exemption from the sale of a primary residence.
NAHB was also successful in urging lawmakers to adopt an amendment to the Senate tax reform bill proposed by Sen. Susan Collins (R-Maine) that will allow home owners to deduct up to $10,000 in property taxes.
Moreover, the Senate bill brings more parity in how pass-through businesses and C-corporations are taxed, enabling them to maintain a level playing field with large corporations.
The legislation now goes to a House-Senate conference, where conferees from both parties will hammer out differences between the two bills. NAHB will be urging conferees to adopt most of the provisions in the Senate plan and to support any changes that will allow more families to achieve homeownership and rental housing opportunities.
For more information, contact J.P. Delmore at 800-368-5242 x8412.