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Congressional leaders released the long-awaited Build Back Better Plan Infrastructure Thursday, October 28th for President Joe Biden’s signature Build Back Better Plan, proposing a top-line price tag and an outline of new social programs.
The $1.75 trillion framework includes hard-fought National Association of Realtors (NAR) priorities like investments in affordable housing and down-payment assistance and spares real estate investment from the most feared taxes.
White House Press Release
Click Here to Read
So what does it all mean and how will it impact you and your community.
Historic Investment in Affordable Housing
The plan invests $150 billion in affordable housing provisions, including the construction and rehabilitation of more than 1 million affordable homes across the U.S. and investments in rental assistance and housing vouchers.
It also includes down payment assistance for first-generation homebuyers to purchase their first homes.
In addition to the provisions outlined above on climate change, health care, and more, the plan includes investments for elder care, Pell Grants and free school meals.
The framework agreement includes funding for the following programs within the housing section:
• Public housing
• Housing Trust Fund
• Down-payment assistance
• Housing vouchers
• Minority Business Development Agency
Tax Provisions Spare Real Estate Investments
The plan is paid for with new taxes on high-income individuals and businesses, but the most feared taxes on real estate investment were excluded.
Some of the earlier tax proposals floated would have devastated the real estate sector, which makes up nearly one-fifth of the entire economy.
This framework has no 1031 like-kind exchange limits, no capital gains tax increases, no change in step-up in basis, no tax on unrealized capital gains, no increased estate tax, no carried-interest provisions, and no 199A limits.
The tax provision of this framework is very positive for consumers, property owners, and the real estate economy.
The plan does not mention State and Local Tax (SALT) deduction relief.
However, congressional leaders still support an increase in the SALT cap, and a group of bipartisan House members is still demanding a solution.
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