In a few weeks, CARW members will be joining REALTORS from across the country to meet with legislators in Washington DC. They have been working with WRA and other Wisocnisn REALTOR organizations to schedule meetings with Wisconsin legislative leaders. Below is a summary of what NAR is monitoring in the recently released House Ways and Means Committee draft of the tax reform bill that will be negotiated over the next several weeks. There are several big wins for the real estate sector in this initial draft.
Highlights from the House Ways and Means Committee Draft (May 12, 2025)
Top 5 NAR Tax Priorities Secured:
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Qualified Business Income Deduction (Section 199A)
• Raised from 20% to 23%
• Made permanent
• Applies to over 90% of NAR members -
State and Local Tax (SALT) Deduction
• Cap tripled from $10,000 to $30,000 (for incomes under $400K)
• Note: Marriage penalty still applies -
Individual Tax Rates
• Lower rates made permanent and indexed for inflation -
Mortgage Interest Deduction (MID)
• Preserved at current levels -
1031 Like-Kind Exchanges + Business SALT
• 1031 exchanges protected
• No major changes impacting real estate professionals
Additional Provisions That Support Real Estate & Affordability
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Child Tax Credit: Increased to $2,500 through 2028
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Estate and Gift Tax Threshold: Made permanent at $15M (adjusted for inflation)
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Low-Income Housing Tax Credit (LIHTC): Enhanced to support affordable housing
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Bonus Depreciation & R&D Expensing: Fully restored
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Expensing for Industrial Structures: Applies to manufacturing, refining, and ag sectors
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Opportunity Zones: Renewed with improved targeting for rural and underserved areas
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No changes to Carried Interest treatment in this draft.
I’ll share updates as I have them – nothing is done until it’s done!
Here is the note from NAR: First Draft of Tax Reform Bill “Very Positive” for Real Estate