On December 13, NMHC/NAA and a coalition of real estate organizations sent a letter to House Speaker Paul Ryan (R-WI) and House Ways and Means Chairman Kevin Brady (R-TX) identifying the sector’s key principles for tax reform. The letter comes as Ways and Means Committee members meet to discuss their blueprint for tax reform that could see action in the early part of next year.
The letter stated that tax reform should:
- Encourage capital formation and long-term investment:
- Reflect the economics of the underlying transactions:
- Provide tax incentives to correct market failures such as those facing low-income housing, and;
- Include well-designed transition rules.
These principles reinforce NMHC/NAA’s goals of ensuring that any tax reform plan should promote economic growth and investment in rental housing without unfairly burdening apartment owners and renters relative to other asset classes. Our team is making the case to policymakers that they should preserve the pass-through tax structure that is so significant in today’s multifamily sector, sensible cost recovery rules, investment incentives and the Low-Income Housing Tax Credit (LIHTC).
Real estate plays a critical role in today’s economy, employing nearly 13 million Americans. As the apartment industry contributes $1.3 trillion to the nation’s economy while housing 38.8 million residents, tax reform will be critical to sustaining real estate as a job-creating engine.