Update (May 22, 2025) - Tax Bill Passes House
Early this morning, the One Big Beautiful Bill Act - the reconciliation package that includes federal tax policy - passed out of the U.S. House of Representatives (215-214). Notably, the final legislation in the House retains key rental housing industry tax priorities, as outlined below. The bill now heads to the U.S. Senate, which has already indicated that they will need to make changes to the bill as drafted.
Read NAA and NMHC's Letter of Support
Original Article (May 13, 2025) - Tax Bill Introduced
The legislative process is underway for the “big, beautiful bill” in Congress that will encompass three of the President Trump’s top priorities: taxes, energy and immigration. This week, multiple committees in the U.S. House of Representatives will consider pieces of this very complicated puzzle.
Top-of-mind for the rental housing industry – and the National Apartment Association’s (NAA) proactive advocacy efforts – is the tax portion of the package, which determines the fate of the 2017 Tax Cuts and Jobs Act set to expire at the end of this year and many new proposals sought by the President.
On May 12, 2025, the Chairman of the House Ways and Means Committee released his draft bill that will be considered and voted on by the full committee on May 13. Given the politics of what it took to get to this point, there likely will be no substantive changes made to the bill during the markup. This version will advance in the House where further changes could be made before a final vote, at some time next week.
The bill does:
- Increase the 199A deduction for pass-through entities from 20 to 23 percent, and makes it permanent
- Enhance and improve the Low-income Housing Tax Credit (LIHTC)
- Extend and expand Opportunity Zones
- Increase the estate tax exemption
The bill does not:
- Change the capital gains treatment of a carried interest
- Reduce the deductibility of business State and Local Property Taxes (SALT)
- Increase individual marginal rates
Industry Impact
All of the above were part of the requests made by NAA to Congress at the start of the year, amplified by more than 800 industry professionals to their Members of Congress during Advocate.