The Act is also notable for harmful tax increase provisions that were left out, but that had been seriously considered by members of Congress. These include: • No limitations or repeal of 1031 like-kind exchanges • No limitation on deductions of businesses for state and local taxes (SALT) This so-called “Business SALT or C-SALT" idea was considered to help offset the cost of raising the $10,000 SALT deduction limit that is in the Act. • No further changes to the mortgage interest deduction. • No increase in the top income tax rate paid by individuals. • No change in the tax treatment of carried interests of real estate partnerships. • No new taxes on tax- exempt entities, such as trade associations. ▪ Another idea that was being considered was as excise tax on trademarks and logos, which would have impacted NAR. Regulatory • Improving the FHA Rehabilitation Mortgage Insurance Program – The FHA 203(k) Rehabilitation Mortgage Insurance Program assists homeowners and homebuyers by helping to finance their mortgage to repair, improve, or upgrade their home. In 2024, FHA announced long sought-after updates to the program which NAR has long been pushing for. These include increasing the maximum cost under the program from $35,000 to $75,000, extending the rehabilitation period for the property to 12 months, and increasing the number of months of financeable mortgage payment reserves. • Fighting Costly & Onerous Bank Rules – NAR joined a coalition of consumer and mortgage finance groups to warn the bank regulators of the adverse impact the proposed Basel III revisions could raise the cost of borrowing in high-cost areas, harm new programs for underserved groups, and weigh on housing supply. • White House Creates Task Force to Develop Federal Land – The White House has created a new Joint Task Force of the Department of Housing and Urban Development (HUD) and the Department of the Interior (DOI) to identify federal land suitable for housing development to help alleviate the inventory crisis. By working with all government levels, this initiative will make sure housing is developed where it is needed most while balancing a streamlined permitting process, housing affordability, and inventory with environmental stewardship. • Credit Modernization - The Federal Housing Finance Agency (FHFA) continued efforts to the expand the use of alternative data and credit scores by making historical VantageScore® 4.0 credit scores available to lenders, servicers, and mortgage insurers to help them adapt to the new scores. NAR has urged the use of alternative credit data and scores for decades, and newly appointed Director Bill Pulte has announced renewed focus on the policy. In addition, the San Francisco Federal Home Loan Bank started accepting mortgages underwritten with VantageScore® credit scores.
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