05/12/2025
This looks very promising for our Florida housing market and for all Floridians.
National Association of REALTORS®
May 12, 2025
BREAKING NEWS: First Draft of Tax Reform Bill "Very Positive" for Real Estate
Republicans on the House Ways and Means Committee released the full draft text of their portion of tax reform legislation Monday afternoon—delivering significant wins for the real estate sector and reinforcing provisions long championed by the National Association of REALTORS®.
NAR’s advocacy team successfully secured its top five tax priorities in the draft bill, including an enhanced small business tax deduction, a strengthened state and local tax (SALT) deduction, and protections for the mortgage interest deduction (MID). The bill also makes the current lower individual tax rates permanent and increases the child tax credit, moves that could help increase homeownership access for more American families.
"This is a very strong opening bid for our advocacy priorities. This draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent,” says NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn. “These are all measures we have worked tirelessly to advocate for on behalf of our members.”
“The bill also triples current SALT deduction limits, although it is very possible the SALT deduction could become even more favorable during the amendment process. A national poll commissioned by NAR in April showed that 61% of voters support increasing or eliminating SALT caps, and 74% say double taxation fairness is a compelling reason to do so,” McGahn continues.
A partial draft of the legislation was released Friday night. The latest details come 24 hours before the committee is scheduled to begin the formal mark-up process on Tuesday.
"While the early details are overwhelmingly positive for the real estate economy and small businesses, I would caution that this is just the first draft. The bill will continue to evolve as it moves through the committee process and eventual passage in the House and Senate, with many amendment votes to come,” McGahn says. “We will continue to engage directly with congressional leadership, key committees, and other policymakers to ensure that housing affordability and support for small businesses remain top priorities in these negotiations. At a time when we face a historic shortage in housing supply, it is essential that this legislation does not worsen the affordability crisis. With real estate accounting for nearly one-fifth of the U.S. economy, a strong real estate sector is vital to the health of the broader economy.”