As the tax reform debate heats up in Congress, NMHC hosted several sessions at the 2017 Annual Meeting to discuss the potential impact of changes to the tax code on the multifamily industry. Led by NMHC Tax Committee Chairman Tom Moran, Chairman, Moran & Company, and Robert Schachat, Ernst & Young, industry leaders solicited member input on the House Republican tax reform Blueprint during the joint Tax/Finance Committee meeting and the Board of Directors breakfast.
In brief, the House Blueprint proposes to reduce pass-through tax rates to 25 percent and enable the immediate expensing of business investments (including multifamily buildings), while eliminating interest deductibility. Members discussed these trade-offs and NMHC encourages members to continue sharing their thoughts about how the House Republican plan would impact their businesses as the tax reform process moves forward. Please click here for a detailed memo on the key tax reform issues for the apartment industry.
The discussion at the Annual Meeting comes as NMHC staff and members continue to meet with Congressional officials to express the industry’s tax reform priorities, including the protection of pass-through entities and maintaining sensible cost recovery rules and investment incentives.
In early January, Tom Moran, Chairman, Moran & Company, David Schwartz, CEO & Co-Chairman, Waterton Associates and Toby Bozzuto, President & CEO, The Bozzuto Group joined NMHC/NAA staff in a series of meetings with Ways and Means Committee Ranking Member Richard Neal (D-MA), Reps. Pat Tiberi (R-OH) and Erik Paulsen (R-MN) and senior tax staff for Speaker Paul Ryan (R-WI), Chairman Kevin Brady (R-TX), and Representatives Joe Crowley (D-NY), Jim Renacci (R-OH), and Peter Roskam (R-IL) to discuss the Blueprint. Additional meetings with policymakers and NMHC/NAA members will be conducted over the coming weeks and months. When and if a definitive tax package emerges, NMHC/NAA will analyze its impact on the industry and ensure that appropriate transition rules are included that not only ease implementation, but also take into account existing investments.