National Association of Realtors Boasts About Getting Its Top Priorities Into the Senate’s Tax Bill

(Adapted from a press NAR press release)

The Trump tax bill, as passed by the Senate on Tuesday, included NAR’s five key priorities:

> A permanent extension of lower individual tax rates

> An enhanced and permanent qualified business income deduction (Section 199A)

> A temporary (five-year) quadrupling of the state and local tax (SALT) deduction cap, beginning for 2025

> Protection for business SALT deductions and 1031 like-kind exchanges

> A permanent extension of the mortgage interest deduction

“These provisions form the backbone of the real estate economy—from supporting first-time and first-generation buyers to strengthening investment in housing supply and protecting existing homeowners,” according to a NAR spokesperson. “Real estate makes up nearly one-fifth of the entire U.S. economy, and we made sure policymakers understood that homeownership is the essential component to building wealth and a strong, prosperous middle class.”

Several other provisions in the bill championed by NAR add to its positive impact on the real estate sector:

> Low-Income Housing Tax Credit (LIHTC): Key provisions from the LIHTC Improvement Act are included on a permanent basis to support affordable housing development.

> Child Tax Credit Increased to $2,200: Permanently raises the credit, with inflation indexing. This provision could ease housing affordability for families.

> Permanent Estate and Gift Tax Threshold Set at $15 Million (Inflation-Adjusted): Prevents a sharp drop in exemption levels and supports generational wealth transfer.

> No Increase to the Top Individual Tax Rate: The proposed 39.6% rate was removed from the bill.

< Restoration of Key Business Provisions: Full expensing of research and development; bonus depreciation; and fixes to the interest expense deduction limit

> Immediate Expensing for Certain Industrial Structures: Applies to facilities used in manufacturing, refining, agriculture and related industries.

> No Changes to Carried Interest Rules

> Strengthened Opportunity Zones: Renewed with revised incentives to promote targeted investment, including in rural areas. NAR polling found that 80% of voters support such tax incentives to drive economic development in underserved communities.

Now it’s the House of Representatives’ turn, but NAR is hopeful these provisions will remain in the final version of the bill.