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#1 – NAHB: Key Housing Wins as House Panel Considers Tax Bill Reprint of This Article.
The House Ways and Means Committee begins debate today on a nearly 400-page tax bill that NAHB believes is very positive for small businesses and real estate. NAHB has sent a letter of support to the committee as well as urging it to make improvements to the bill.
In the past months, NAHB has raised concerns on the potential elimination of businesses’ ability to deduct property taxes, changes to the mortgage interest deduction, and the elimination of energy tax credits. And throughout this process, we have also supported the effort to increase the $10,000 cap on state and local taxes (SALT) for individuals, which is a priority for our members in high-cost states.
NAHB secured several key victories in the House tax bill:
The bill also restores and revamps a limitation on itemized deductions known as the Pease limitation. The new mechanism would limit the maximum value of tax deductions to 35 cents per dollar deducted. This only applies to taxpayers in the top 37% bracket (singles earning more than $609K, couples earning above $731K), who otherwise would receive a deduction of 37 cents per dollar, a difference of two cents.
Some Energy Tax Credits Face Early Termination
The bill proposes to end several of the energy tax credits used in our industry:
Fortunately, the bill retains the Section 48E Clean Electricity Tax Credit, which was previously known as the Investment Tax Credit. However, the bill would move up the phase-out period to start in 2029 and eliminate the credit by 2031. 48E was otherwise set to phase-out starting in 2032. This is a 30% tax credit for businesses installing solar, wind or geothermal.
This is the first step in the legislative process, and there are areas of improvement we will seek. NAHB is urging the Ways and Means Committee to reconsider the termination of the Section 45L New Energy Efficient Home Tax Credit and the Section 25D Residential Clean Energy Credit. The Section 45L tax credit is claimed by single-family builders serving every price point as well as rental housing, including affordable rental housing financed with the Low-Income Housing Tax Credit. NAHB believes the most effective way to promote energy efficiency is through voluntary tax incentives.
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#2 – NAR: First Draft of Tax Reform Bill Very Positive for Real Estate. Reprint of This Article.
Republicans on the House Ways and Means Committee released the full draft text of their portion of tax reform legislation Monday afternoon—delivering significant wins for the real estate sector and reinforcing provisions long championed by the National Association of REALTORS®.
NAR’s advocacy team successfully secured its top five tax priorities in the draft bill, including an enhanced small business tax deduction, a strengthened state and local tax (SALT) deduction, and protections for the mortgage interest deduction (MID). The bill also makes the current lower individual tax rates permanent and increases the child tax credit, moves that could help increase homeownership access for more American families.
“This is a very strong opening bid for our advocacy priorities. This draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “These are all measures we have worked tirelessly to advocate for on behalf of our members.”
“The bill also triples current SALT deduction limits, although it is very possible the SALT deduction could become even more favorable during the amendment process. A national poll commissioned by NAR in April showed that 61% of voters support increasing or eliminating SALT caps, and 74% say double taxation fairness is a compelling reason to do so,” McGahn continues.
A partial draft of the legislation was released Friday night. The latest details come 24 hours before the committee is scheduled to begin the formal mark-up process on Tuesday.
“While the early details are overwhelmingly positive for the real estate economy and small businesses, I would caution that this is just the first draft. The bill will continue to evolve as it moves through the committee process and eventual passage in the House and Senate, with many amendment votes to come,” McGahn says. “We will continue to engage directly with congressional leadership, key committees, and other policymakers to ensure that housing affordability and support for small businesses remain top priorities in these negotiations. At a time when we face a historic shortage in housing supply, it is essential that this legislation does not worsen the affordability crisis. With real estate accounting for nearly one-fifth of the U.S. economy, a strong real estate sector is vital to the health of the broader economy.”
Below is a summary of the draft provisions released today:
Top Five NAR Tax Priorities
Qualified Business Income Deduction (Section 199A)
The draft bill retains, makes permanent, and increases the QBI deduction from 20% to 23%.
This deduction benefits more than 90% of NAR members, who are classified as independent contractors or small business owners.
83% of voters support the 20% tax deduction for independent contractors and small businesses making less than $400,000 a year, according to NAR’s recent national poll.
State and Local Tax Deduction (SALT)
The SALT deduction cap is tripled from $10,000 to $30,000 for households earning under $400,000. However, the bill does not eliminate the current-law marriage penalty. Thus, single filers and married couples filing a joint return both can deduct a maximum of $30,000 in state and local taxes.
Individual Tax Rates
The current lower individual tax rates are made permanent and indexed for inflation, aiding taxpayers and improving affordability for prospective homebuyers.
86% of voters support the lowered income tax rates for individuals and married couples, according to NAR’s recent national poll.
Mortgage Interest Deduction (MID)
The draft preserves and makes permanent the MID at its current level, maintaining a key tax benefit for homeowners and supporting housing market stability.
There had been concern MID might be reduced or eliminated as a budget offset.
91% of voters support maintaining tax incentives such as the mortgage interest deduction for homeowners, according to NAR’s recent national poll.
Business SALT and 1031 Like-Kind Exchanges
The draft bill protects Section 1031 like-kind exchanges, which are often erroneously regarded as a tax loophole.
It also includes no changes for most businesses deducting state and local taxes (sometimes referred to as “Business SALT”).
While the bill does provide limits in state-level business SALT workarounds for certain high-income professionals (e.g., law firms, hedge funds, consulting businesses, and other services), the provisions do not appear to impact real estate professionals.
Additional Positive Tax Provisions for Real Estate Economy
Child Tax Credit Increased to $2,500 (2025–2028)
Temporarily raises the child tax credit through 2028 and then indexes it for inflation starting in 2029.
The child tax credit supports families and could help with housing affordability.
Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-Adjusted)
Prevents a significant drop in exemption levels and supports generational wealth transfer, aligning with NAR priorities.
No Top Tax-Rate Increase
The proposed 39.6% top rate was removed from the bill.
Low-Income Housing Tax Credit (LIHTC)
Key provisions from the LIHTC Improvement Act will be included to support affordable housing development.
Restoration of “Big 3” Business Tax Provisions
Full expensing of research and development (R&D)
Bonus depreciation
Fixes to interest expense deduction limits
Immediate Expensing for Certain Industrial Structures
Applies to structures used in manufacturing, refining, agriculture and related industries.
No Change to Carried Interest Treatment
Opportunity Zones
Renewed with revised incentives to encourage targeted investment, including in rural areas.
80% of voters expressed support for tax incentives for investors to encourage economic growth and development in underserved and poorer communities, according to NAR’s recent national poll.
NAR’s policy team continues to go through the bill and will provide updates as warranted.
My Take: We don’t spend a ton of time reporting on items at the national level, but it seemed important to relay some of the significant efforts and hard-fought wins being achieved by our coalition partners in Washington, DC. As you read above, this tax bill contains many beneficial provisions and would provide some sense of certainty to businesses that might want to expand operations. It will also provide additional relief to families and individuals who will retain more of their dollars to use for investing in education, retirement, and other endeavors they deem worthwhile.
(This Email is shared with you from The City of Charlotte. Link to apply for committee is at end:)
The City of Charlotte is committed to providing comprehensive and consistent land development services—including plan reviews and inspections—aligned with our core goals of safety, economic vitality, and environmental stewardship.
To strengthen communication and collaboration within the land development community, we are excited to relaunch the Development Services Technical Advisory Committee (DSTAC).
What is DSTAC?
DSTAC will serve in an advisory capacity, providing input on technical and procedural issues related to development in Charlotte. The committee will be a vital forum for discussing policy changes, regulatory processes, plan approvals, inspections, and enforcement matters—and offering informed recommendations to City staff.
Who Will Serve on DSTAC?
DSTAC will consist of 18 members, including:
A Co-Chair from the City’s Land Development Division and a Co-Chair from the Development Community (each serving 3-year terms)
One representative each from GCAA, HBA, NAIOP, and REBIC (3-year terms)
Continuous representation from key City and County departments, including Zoning, Stormwater, Urban Forestry, CDOT, Charlotte Water, NCDOT, and Mecklenburg County LUESA
Two members from the design and development community
One member representing affordable housing
Who Should Apply?
Applicants from the design, development, and affordable housing communities are invited to apply. The DSTAC Leadership Team will evaluate candidates based on experience and ability to contribute to the committee’s mission.
Meeting Schedule:
DSTAC will meet monthly in person, and once per quarter, a Stakeholders Meeting (with all members present and open to the broader development community) will be held in lieu of the regular monthly meeting.
Interested in Joining?
Please submit your application by Friday, May 23, 2025, and share this opportunity with your professional networks.
Find the Development Services Technical Advisory Committee (DSTAC) Application to Serve on Board, Here. Please note: There is NO requirement for living in City / County.
My Take: We are constantly working to place our members on important advisory boards and commissions established by the numerous local governments within our coverage area (Mecklenburg, Iredell, Cabarrus, Gaston, and Union Counties). But every once in a while, we highlight a specific opportunity. This is one such case. We need your expertise to help guide the process and promote common sense solutions. Please consider applying for one of the open seats. If you are not the right candidate, please consider reaching out to others within your network. This is important.
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