NAHB Calls on Senate to Pass Tax Bill

Housing Affordability
Contacts: Stephanie Pagan
Director, Media Relations
(202) 266-8254

Elizabeth Thompson
AVP, Media Relations
(202) 266-8495

The National Association of Home Builders (NAHB) called on the Senate today to move quickly to pass the American Families and Workers Act of 2024, legislation that would expand the federal child tax credit and enact a number of other business- and housing-related provisions.

“In an era of hyper-partisanship, the House voted overwhelmingly to approve this critical bill last month because Republican and Democratic lawmakers recognize it contains a number of provisions to help families, assist small businesses and promote the production of attainable, affordable housing,” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan. “The tax-filing season has already started, making it imperative for the Senate to put petty politics aside and do what’s right for the nation by passing this bill now.”

NAHB sent a letter to the full Senate today designating a vote in support of the legislation as a “key vote” because of its importance to the housing industry. Specifically, the bill would:

Strengthen the Low-Income Housing Tax Credit (LIHTC). LIHTC helps finance the construction and preservation of affordable rental housing. This bill would temporarily increase the amount of credits allocated to states by 12.5% for calendar years 2023 through 2025. The measure also provides more flexibility when using bonds to finance a LIHTC project.

Extend the 100% Bonus Depreciation. Businesses were permitted to claim 100% bonus depreciation in 2022 for qualifying assets placed in service in 2022. The rate decreased to 80% in 2023, and was set to drop to 60% in 2024, 40% in 2025, 20% in 2026, and zero in 2027. The legislation would allow businesses to claim 100% bonus depreciation for investments in machines, equipment and vehicles for tax years 2023, 2024 and 2025, providing a retroactive tax benefit for 2023.

Expand Section 179 Expensing. The provision increases the maximum amount a taxpayer may expense to $1.29 million, reduced by the amount by which the cost of qualifying property exceeds $3.22 million. The $1.29 million and $3.22 million amounts are adjusted for inflation for taxable years beginning after 2024.

Increase the Threshold for Information Reporting on Forms 1099-NEC and 1099-MISC. Under current law, the reporting threshold for payments by a business for services performed by an independent contractor or subcontractor and for certain other payments is generally $600. The legislation would increase the threshold to $1,000 and adjusts it for inflation after 2024.

The legislation is paid for, at least in part, by accelerating the deadline for filing backdated claims under the Covid-era Employee Retention Tax Credit (ERC), as well as increasing penalties on entities promoting fraudulent ERC claims and granting the IRS additional time to scrutinize ERC claims.