Following the Senate’s passing of the Tax Cuts and Jobs Act, the National Lumber and Building Material Association remains about changes to state and local tax (SALT).
The new legislation will cease itemized deductions for state and local income and sales taxes, but allows individuals to deduct up to $10,000 for property taxes. According to the NLBMDA the code changes will have a negative impact on those living in areas with higher local and state taxes. The association also said it will be more difficult for businesses in those areas to retain and attract workers.
The bill also modifies mortgage interest deductions by eliminating the home equity loan interest deduction. Currently, interest payments on up to $100,000 of home equity loan debt are eligible for deduction. The NLBMDA said it supports the legislation retaining the deduction for interest payments on up to $1 million of mortgage debt, as well as the deduction for second homes.
The NLBMDA’s complete response to the Tax Cut and Jobs Act can be found here.