We ended the first week of August with the Biden Administration’s first major piece of economic legislation: the Inflation Reduction Act. What does this mean for housing? Changes in construction and housing tax policy that keep carbon emission reduction at the forefront.
Here are the highlights:
- New tax credits that incentivize the construction of and upgrades to buildings to become more energy-efficient through the use of specific materials and technologies, particularly for the multi-family and commercial markets
- Extension of existing tax policies that limit deductions of pass-through losses, as well as continued exemptions for real estate investment trusts (REITs) and S Corporations
In other government news, could the Administration’s latest Student Loan Forgiveness plan help the housing market? With 51% of student loan holders indicating their debt hinders their ability to purchase a home, perhaps this de-leveraging will unlock purchasing opportunities for at least some first-time buyers.
Source: National Association of Realtors
