Podcast: NAHB Discusses Tax Bill on One Big, Beautiful Podcast
TL/DR –
NAHB (National Association of Home Builders) is fighting to preserve gains from the 2017 Tax Cuts and Jobs Act in a new “big, beautiful” tax bill. Notable features of the upcoming bill include the increase of Individual state and local tax (SALT) limit from $10,000 to $15,000 for singles and $30,000 for couples, enhancement of Section 199A Qualified Business Income Deduction, and an increased estate tax exemption. AVP of Government Affairs J.P. Delmore stated that NAHB will be pushing back on the end date for energy tax credits and will continue to look for opportunities to increase the homeowner tax incentives.
NAHB Discusses New Tax Bill in Recent Podcast
In a recent episode of the Housing Developments podcast, NAHB executives, including CEO Jim Tobin, COO Paul Lopez, and AVP of Government Affairs J.P. Delmore, discuss the impacts of the newly introduced tax bill.
Unlike in 2017 when the Tax Cuts and Jobs Act brought significant victories for NAHB, the current focus is on preserving the benefits earned in the initial bill. Despite this defensive stance, some initial wins include positive changes to the Low-Income Housing Tax Credit.
Delmore highlights several provisions of the bill, which he describes as “a really good tax bill,” for NAHB. However, acknowledging the journey ahead, Delmore stated, “This has to go to the House floor. It has to go into the Senate and go through that process … but this is a much better start than a lot of us expected to see.”
Key Provisions of the New Bill
- Increased individual state and local tax (SALT) limit from $10,000 to $15,000 for singles and $30,000 for couples (phasing out for high earners).
- Full business SALT deductions.
- Permanent implementation of The Tax Cuts and Jobs Act.
- Improved Section 199A Qualified Business Income Deduction.
- Raised estate tax exemption to $15 million.
- Restoration of 100% bonus depreciation.
- Extended Opportunity Zones.
Current housing tax incentives remain, with increased standard deductions for a handful of years. Delmore acknowledges that these “will be offset a little bit by the increased SALT deduction cap.”
NAHB plans to seek further opportunities to enhance homeowner tax incentives and combat proposed energy tax credit cuts. This includes the Sections 45L, 25D, and 48E, which face elimination or faster phaseout than expected.
Delmore voiced concern over the sudden alterations to the Inflation Reduction Act, saying, “I don’t think that’s fair.” The bill’s finalization is aimed for July 4, but it faces hurdles within the House and Senate. NAHB will keep members updated.
NAHB’s upcoming Legislative Conference on June 11 presents a chance to address these issues and more. Learn more at nahb.org.
Listen to the full episode on YouTube or subscribe to Housing Developments through your favorite podcast provider.
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