Industry Remains Cautiously Optimistic on Tax Reform
Tax reform gained key approvals, but it is still awaiting key votes. Here is where things stand and how it affects the apartment industry.
On Nov. 16, The House of Representatives passed H.R. 1, the “Tax Cuts and Jobs Act,” while in the Senate, the Finance Committee completed consideration of its tax reform proposal. The full Senate is scheduled to vote on this bill after Thanksgiving, after which time the two chambers must resolve the differences in their proposals.
The process lawmaking has been very fluid, given that Congress is considering legislation to substantially overhaul the tax code for the first time in more than 30 years. Leaders in Congress and the Administration are under tremendous pressure to achieve a legislative victory after a tumultuous year.
We are entering a critical stage of the legislative process. NAA must weigh the impacts of several fundamental changes to the tax code on its members. Having said that, many key tax code provisions —business interest deductibility, like-kind exchanges and carried interest—are left largely intact in both bills.
NAA will continue to work to secure in the final legislation our remaining priorities: ensuring parity for pass-through businesses with c-corporations and protecting the Low-Income Housing Tax Credit. Despite where things stand currently, changes can be made to the legislation at any time, and NAA will continue to be vigilant.
We invite you to add your voice to our advocacy efforts by visiting our website devoted to tax reform - Protect the Lease.