Tax reform must be comprehensive and take special care not to harm the thousands of businesses involved in multifamily real estate nor the 35 million Americans who call an apartment home. This was the focus of testimony by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) before the House Committee on Ways and Means today.
|Tom Moran and House Committee on Ways & Means Chairman Dave Camp|
Representing NMHC and NAA, Thomas Moran, Chairman and Managing Partner of Moran & Company, testified on the need to meet the housing needs of what the Harvard Joint Center for Housing Studies research suggests is up to seven million new renter households this decade.
“Like many other small businesses, the apartment industry has a considerable stake in tax reform. In addition, we provide homes for millions of Americans covering the entire socioeconomic spectrum," said Moran. "An estimated 300,000 to 400,000 units a year must be built to meet expected demand; yet just 158,000 apartments were delivered in 2012 - not enough to even replace the units lost every year to demolition and obsolescence."
To meet the ongoing demand for rental housing, the apartment industry asks Congress to:
- Ensure that tax reform is comprehensive and does not reduce corporate taxes at the expense of small businesses.
- Maintain the current treatment of carried interest to help offset the considerable financial risks in real estate.
- Retain the 100 percent deduction for business interest.
- Protect the Low-Income Housing Tax Credit program, which is responsible for more than 2.4 million affordable apartment homes.
- Respect the estate tax legislation enacted as part of the American Relief Act of 2012.
- Modify the section 179D Energy Efficient Commercial Buildings Tax Deduction to enable more properties to qualify for the incentive.
“The apartment industry builds vibrant communities by offering housing choice, supporting local small businesses, creating millions of jobs and contributing to the fabric of communities across the country. In fact, apartment homes and our 35 million residents contribute $1.1 trillion annually to the economy and help support nearly 26 million jobs,” Moran added.