New law proposal allows $150,000 per unit deduction for rental housing
A proposed law would let developers deduct up to $150,000 per rental unit immediately, reducing tax penalties for new housing projects.
This could lower costs for developers, potentially increasing rental housing supply and affecting rental prices.
Immediate deduction allowed
The proposal permits an immediate deduction of up to $150,000 per rental unit, which is currently not fully deductible.
Impact on housing supply
By reducing tax penalties, the law aims to encourage more new rental housing construction, which could ease supply shortages.
Common questions
What is the current tax treatment for rental housing?
Currently, developers cannot immediately deduct the full cost of new rental units, which increases their tax burden.
How much can be deducted under the new proposal?
Under the proposal, developers can immediately deduct up to $150,000 per rental unit.
Sources
- Why Expensing New Rental Housing Is One of the Best Ways to Tackle the Housing Supply Problem By Richard DiSalvo, Tax Foundation · taxfoundation.org
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