NAR identified several “significant wins” for the real estate sector within the bill, including:
- Enhanced small business tax deduction
- Expanded state and local tax (SALT) deduction
- Protection for the mortgage interest deduction (MID)
- Permanent lower individual tax rates
- Increased child tax credit
The association says these elements of the bill could meaningfully improve housing affordability and support access to homeownership, particularly for middle-income families. According to NAR, expanding the SALT deduction is a top priority and has public support.
“The bill also triples current SALT deduction limits,” McGahn said. “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.”
The bill also includes pro-growth policies such as a renewal of the opportunity zones program with new incentives and provisions to support affordable housing development through the low-income housing tax credit.
While welcoming the initial draft, NAR is stressing that it remains an early step in the legislative process. The association has pledged to stay engaged with congressional leaders to ensure real estate priorities are protected as negotiations unfold.