Tax Reform

The Tax Cuts and Jobs Act (TCJA), which took effect for the tax year starting Jan. 1, 2018, will largely expire after 2025. Unless Congress acts, the country will be faced with more than $4 trillion in tax hikes. Taxes will be a major legislative focus in 2025, and NAHB will be heavily engaged.

As part of our strategic efforts, NAHB is hosting listening sessions for all NAHB members in October to discuss this coming tax cliff. NAHB members can sign up to attend any listening session. (Member login required to access details and forms.)

The enactment of TCJA has been transformative for the residential housing industry. Key changes include:

• A lower rate structure;
• Improved incentives for business investments;
• Near-elimination of the individual Alternative Minimum Tax;
• Establishment of the 199A Qualified Business Income Deduction;
• Reduced tax burdens from the Estate Tax;
• Retention of the Low-Income Housing Tax Credit and private activity bonds; and
• Other changes that improved the tax code for small businesses.

NAHB also believes there are opportunities to build on the initial success of TCJA to improve the tax code for middle-class Americans and small businesses, increase homeownership opportunities for Americans, and build more affordable rental housing.

Disclaimer: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of this tax information is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.