As House Republicans’ move forward with new tax reform legislation, the National Association of Home Builders (NAHB) says it will not support the measure if it does not include a replacement for certain deductions.
NAHB CEO Jerry Howard told the Wall Street Journal that group could not support the bill because the proposal is not expected to include a new tax credit to take the place of deductions for property taxes and mortgage interest. The deductions are likely to be eliminated under the new legislation.
“It’s a bad bill for the housing sector,” Howard said. “We will not be for it.”
NAHB initially said they were open to the tax plan. In September statement, NAHB Chairman Granger MacDonald said this plan “represents a positive step in the right direction.”
House Speaker Paul Ryan (R-Wis.) said House Republicans will unveil their tax bill next week. According to The Hill, the measure would nearly double the standard deduction while eliminating personal exemptions. The plan may eliminate the deduction home mortgage borrowers can take on mortgage interest they pay.
According to NAHAB: “This jump in the standard deduction would mean most people who itemize would switch to the standard deduction. In turn, this could marginalize the mortgage interest deduction.”
According to Howard, he’s been in talks with the House Ways and Means Committee, working on a tax credit to replace the mortgage interest and property tax deductions. He said Ryan informed him Saturday that the tax credit proposal doesn’t have the support of some Republican’s.
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