NMHC and NAA joined a coalition of over 100 organizations supporting legislation introduced by Representative Jason Smith (R-MO) and Senator Steve Daines (R-MT) that would make permanent the 20 percent tax deduction for pass-through businesses enacted as part of the Tax Cuts and Jobs Act.
The pass-through deduction benefits flow-through entities (i.e., LLCs, partnerships, S Corporations and REITs) that dominate the multifamily industry and lowers the top tax rate imposed on investors in such entities to 29.6 percent from 37 percent. Unless it’s extended, this incentive will expire for taxable year’s beginning after 2025.
NMHC and NAA strongly support making permanent the 20 percent deduction, particularly given that C corporations are taxed at a 21 percent rate.
For more information on pass-through deductions, please visit our advocacy page.
- Treasury and IRS Issue Clean Energy Tax Credit Guidance
- Business Coalition Letter Regarding 199A
- NMHC and NAA Statement for House Committee on Ways and Means Field Hearing on the State of the American Economy: The South
- NMHC Advocates for Tax Policy as Solution to Housing Affordability Crisis
- Sharon Wilson Géno Written Testimony on Behalf of the NMHC and NAA to the Senate Committee on Finance Hearing Entitled Tax Policy’s Role in Increasing Affordable Housing Supply for Working Families