APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION
Final Tax Bill Passes
In a key win for the industry, bill retains housing priorities.
BY OWEN CAINE
On July 3, 2025, the U. S. House of Representatives narrowly passed the One Big Beautiful Bill Act( OBBBA) out of chamber( 218-214) – the last vote needed for the Congressional reconciliation package that dictates the future of tax policy. Just two days prior, the U. S. Senate passed the legislation with Vice President JD Vance casting the tie-breaking vote.
The final bill was signed into law by President Trump on July 4.
The Big Picture
The final, now-passed legislation includes key housing-related tax priorities that will help boost longterm affordability, increase supply and protect the nation’ s rental housing infrastructure. The final version of these housing provisions reflects months of diligent advocacy, bolstered by the support of industry advocates.
What This Means for Housing The tax package will:
• Make the 199A deduction for pass-through entities permanent and keep the deduction rate at 20 percent
• Enhance and improve the Lowincome Housing Tax Credit( LIHTC)
• Extend and expand Opportunity Zones, making them permanent
• Increase the estate tax exemption
The tax package will not:
• Change the capital gains treatment of a carried interest
• Reduce the deductibility of business State and Local Property Taxes( SALT)
• Increase individual marginal rates
Include a“ revenge tax” on companies with foreign owners, or investors from countries judged as charging“ unfair foreign taxes” on U. S. Companies. The U. S. Senate struck the Section 899 provision.
Earlier this week, the U. S. Senate also voted 99-1 in favor of an amendment to remove any regulatory pause on artificial intelligence.
In a press statement, National Apartment Association’ s( NAA) Greg Brown, Senior Vice President, Government Affairs, noted that“ across communities nationwide, longstanding housing challenges demand action by lawmakers – and this year, that opportunity included federal tax policy. NAA applauds lawmakers in Congress for prioritizing solutions in the reconciliation package that will help boost supply, ease affordability challenges and protect the long-term viability of the nation’ s rental housing infrastructure.” Read more.
Industry Advocacy Delivers Win
Over the past six months – supported by industry advocates from across the country – NAA and real estate coalition partners worked tirelessly to underscore the need for housing affordability solutions in this year’ s federal tax package.
Tax policy was the primary focus of NAA’ s annual advocacy conference and Capitol Hill Lobby Day, Advocate, this year. In March, more than 800 rental housing industry professionals gathered in Washington, D. C. to hold more than 270 with lawmakers in one single day.
What’ s Next
An in-depth analysis of the legislation’ s full tax provisions is forthcoming.
As always, NAA’ s efforts to stand strong for the rental housing industry and promote real housing affordability solutions continues. Stay updated with NAA’ s advocacy work with the Apartment Advocate.
34 | TRENDS AUGUST 2025 www. aamdhq. org