H.R. 8996, Corporate Tax Incentive for Rental Housing. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 8996 · Net cost
What it does
This bill creates a large federal tax deduction for companies and investors that build or acquire multi-unit rental housing. Specifically, it allows them to deduct up to $150,000 per dwelling unit (or $250,000 if the units are designated as affordable) in the year the property is placed in service, on top of normal depreciation deductions. The deduction is clawed back if the property stops being used as rental housing within 10–15 years. The primary beneficiaries are real estate investment firms, institutional landlords, and wealthy investors in rental properties.
The analysis names Real estate investment trusts (REITs) — and 4 more groups — among the beneficiaries.
The cost
The $150,000-per-unit deduction is not indexed to inflation, meaning its real value will erode over time unless Congress amends the statute.
The analysis put a high warning level on this bill. Transparency scores 55%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by Linda Sánchez. Cosponsored by Brian Fitzpatrick, Claudia Tenney, Darin LaHood and George Latimer.