The National Association of Home Builders on Oct. 28 announced its official opposition to expected House tax reform legislation because the plan would diminish the effectiveness of the mortgage interest deduction and an NAHB proposed alternative to retain effective tax incentives was excluded from the package at the last minute.
NAHB has been working with leaders of the House Ways and Means Committee to develop a broad homeownership tax credit that would include both mortgage interest and property taxes. This NAHB proposal would protect a meaningful tax benefit for home owners who currently itemize, while expanding homeownership tax benefits to an additional 37 million middle-class home owners.
After being informed that the needed homeownership tax credit would not be part of the bill, originally expected to be released on Nov. 1, NAHB announced opposition to the bill and launched necessary efforts to ensure that middle-class tax benefits of homeownership are part of planned tax reform. After opposition was announced by NAHB and other groups, House leadership announced Oct. 31 that the committee would push back the release of the tax reform plan to finalize changes to the legislation.