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.
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- Senator Harris Introduces Renter’s Tax Credit
- Treasury and IRS Release Round Two of Opportunity Zone Regulations, Days After HUD Asks for Comments
- Trump Administration Offers New Flexibility in Opportunity Zones
- 199A Pass-Through Deduction Coalition Letter - April 2019