By Matthew Berger, VP of Tax, Student Housing
Matthew M. Berger is Vice President of Tax and Vice President of Student Housing. In his tax role, Matthew represents the interests of the multifamily industry before Congress and federal agencies on tax issues.
While NMHC continues to work on legislative issues, including educating members of Congress on the implications of tax provisions expiring at the end of 2025, the legislative calendar remains relatively short in the run-up to the November 5 election. The House and Senate are scheduled to be in session for just six weeks before the election, while taking off five weeks for the August recess. Both chambers are slated to return for a total of five weeks following the election in a lame-duck session.
Most pressing on Congress’ agenda will be ensuring the government is funded past the beginning of Fiscal Year 2025 on October 1. With both chambers at odds on government funding levels, Congress is expected to enact a continuing resolution to ensure ongoing funding and avoid a government shutdown. It is unclear how long such a resolution will run, but it is expected to last at least until after the November election and possibly into 2025. In the meantime, the House and Senate will work on their versions of the 12 annual appropriations bills. NMHC is engaged in the appropriation’s process because many programs, such as Section 8, HOME, CDBG and NFIP are funded through appropriations and we want to make sure they receive adequate funding.
What’s on the Agenda Before the Election?
To date, the House has approved four bills and hopes to pass the remainder prior to the August recess. On the Senate side, the Appropriations Committee is still drafting spending legislation.
Other key legislation on Congress’ agenda includes the National Flood Insurance Program (NFIP). Set to expire on September 30, we expect Congress to extend the current-law NFIP for a yet-to-be-determined period. Finally, Congress will also have to address the National Defense Authorization Act by the end of the calendar year, perhaps most likely during the lame-duck session. NMHC closely watches the bill due to our involvement in military housing and potential policy riders that may be added.
Washington Takes on Tax
While Congress is unlikely to address critical tax provisions expiring at the end of 2025 until next year, the rental housers are already advocating for the permanent extension of reduced tax rates, the 20 percent qualified business income tax deduction and increased estate tax limits. We also view next year’s bill as a key opportunity to expand housing supply tax incentives targeting LIHTC, a workforce housing credit, opportunity zones and adaptive reuse. We are also expressing our opposition to potential onerous revenue raisers, such as those targeting carried interest and like-kind exchanges, which could disrupt capital flows and investment.
Finally, the 119th Congress that convenes on January 3 will have to confront raising the debt limit that is extended through January 1. Beginning January 2, the Treasury Department will have to deploy so-called extraordinary measures to prevent the government from exceeding its borrowing authority. Combined with incoming tax receipts, this could postpone a final deadline for several months. Yet given the Congressional Budget Office’s forecast of large budget deficits, the issue could garner significant attention in the early part.
Staff Resource
Related Articles
- Tax Reform
- Real Estate Industry Letter to the Full Senate in Support of Scott Turner as Secretary of HUD
- Real Estate Industry Letter to Senate Banking Committee in Support of Scott Turner as Secretary of HUD
- Workforce Housing Tax Credit (WFHTC)
- Real Estate Industry Statement for HFSC Hearing on Innovation Revolution