NMHC joined a coalition of trade associations in a letter supporting legislation introduced by Representatives Jason Smith (R-MO) and Henry Cuellar (D-TX) 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 strongly supports making permanent the 20 percent deduction, particularly given that C corporations are taxed at a 21 percent rate.
For more information on NMHC’s advocacy work on this topic, visit our business interest deductibility webpage.
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