Your Week In Washington
Later this week, perhaps as soon as December 19, both the U.S. House and Senate will pass the tax reform legislation and send it to the President for signature into law. The final legislation reflects changes made to reconcile different earlier versions of the bill passed in each chamber.
NAA is pleased that the priorities of the apartment housing industry were addressed in the final bill. The law retains business interest deductibility, the 1031 “like-kind” exchange and the Low-Income Housing Tax Credit (LIHTC) program. The new law slightly extends the depreciation period for multifamily buildings (27.5 years to 30 years), however, a new deduction of 20 percent is created for pass-through entities like those that dominate the apartment housing industry. Finally, carried interested will continue to be treated as a capital gain for assets held for at least 3 years. For more on the significant features of the law, see here.
The positive outcome for the apartment housing industry is due in large part to the engagement of you, your colleagues and citizen advocates around the country. The thousands of letters sent to Capitol Hill as part of the Protect the Lease campaign announced our priorities loud and clear. The impact of that advocacy is reflected in the final legislation.
Going forward, NAA will work to assess the impact on the apartment industry of the law. Given the scope of the legislation and the pace of its creation, there will undoubtedly be need for technical corrections or other refinements. At that time, we will certainly call the industry to action once again to ensure our voice is heard.