WASHINGTON, D.C. - The National Association of Home Builders (NAHB) announced its opposition to the new Republican tax plan released today.
NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas, issued a statement noting that the tax plan unveiled by House Republicans impacts existing housing tax benefits by drastically reducing the number of home owners who can take advantage of mortgage interest and property tax incentives.
“Capping mortgage interest at $500,000 for new home purchases means that home buyers in expensive markets will effectively lose this housing tax benefit moving forward," he said.
NAHB had previously worked closely with leaders of the House Ways and Means Committee to develop what is says is a better homeownership tax incentive but that effort was not included in the announced plan.
“It would (have provided) a robust homeownership tax credit that would have helped up to 37 million additional home owners who do not currently itemize. Most of them are low- and moderate-income home owners," MacDonald said.
Other tax policies that NAHB promotes include:
- A homeownership tax incentive;
- The low-income housing tax credit, along with additional resources to meet the affordability crisis;
- Tax incentives for remodeling, including energy efficiency tax credits;
- The exclusion of capital gains on the sale of a principal residence; and
- Business interest deductions for small businesses.
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