NMHC President Doug Bibby took part in a Real Estate Tax Reform Listening Session at the White House on July 31. The event gave Doug an opportunity to highlight the industry’s tax reform priorities with National Economic Council Director Gary Cohn and other Trump administration leaders.
The meeting came at an opportune moment in the tax reform process. Only a few days ago, Secretary Mnuchin, Cohn, and key House and Senate leaders released consensus principals for tax reform ahead of the August recess.
Just prior to the statement being released, Cindy Chetti, Senior Vice President for Government Affairs and Matthew Berger, Vice President for Tax, participated in a joint briefing with key staffers from the Administration and Congress. In the statement, the lawmakers indicated that the House Ways and Means and Senate Finance Committees would take the lead on drafting legislation that is focused on reducing taxes on American businesses and families. Forthcoming legislation would also focus on expensing of capital assets, though it is unclear if real estate would be fully expensed as the House proposed in its Blueprint released last summer. Notably, agreement was also reached to set aside a controversial Border Adjustable Tax (BAT) proposal that had divided lawmakers. While there is no firm timetable for legislative action, the House Ways and Means and Senate Finance Committees are seeking to mark up their respective versions of tax reform legislation this fall followed by floor action in each chamber.
As the Ways and Means and Finance Committees work toward drafting legislation, NMHC/NAA continue to remind policymakers about the industry’s priorities, including our view that any tax reform proposal must:
- Protect Pass-Through Entities from Higher Taxes or Compliance Burdens;
- Ensure Depreciation Rules Avoid Harming Multifamily Real Estate;
- Retain the Full Deductibility of Business Interest;
- Preserve the Ability to Conduct Like-Kind Exchanges;
- Maintain the Current Law Tax Treatment of Carried Interest;
- Preserve and Strengthen the Low-Income Housing Tax Credit;
- Maintain the Current Law Estate Tax; and
- Repeal or Reform the Foreign Investment in Real Property Tax Act to Promote Investment in the Domestic Apartment Industry.