“The bill will help both homeowners and renters alike,” wrote Bill Killmer, the MBA’s senior vice president for legislative and political affairs. He also noted that MBA is “pleased” that the ANS retains the provision allowing a deduction for qualified residence interest.
Association backs provisions
The MBA highlighted several real estate investment incentives retained or expanded in the ANS, including the continued use of Section 1031 like-kind exchanges, preservation of business interest deductibility for real estate using EBITDA, and the expansion of the Low-Income Housing Tax Credit (LIHTC).
The bill also proposes extending the availability of tax-exempt private activity bonds (PABs) and introducing a new round of Opportunity Zones through 2033, with added transparency measures.
The letter also commended a proposed increase in the Qualified Business Income deduction from 20% to 23% under a permanent Section 199A, a change the MBA said would benefit the many small businesses and pass-through entities in real estate finance.
While broadly supportive, the MBA noted concerns with certain aspects of the bill. These include a proposed 35% cap on total itemized deductions for top-bracket taxpayers and what the association described as an overly complex limitation on state and local deductions for some pass-through entities.