CREF Policy Update: MBA Working for You–Final Tax and Reconciliation Package Contains Numerous Pro-Real Estate Tax Provisions

July 8, 2025

MBA Working for You: Final Tax and Reconciliation Package Contains Numerous Pro-Real Estate Tax Provisions

In what is a significant win for MBA members, the full U.S. House of Representatives passed the Senate’s substitute amendment–which passed on Tuesday–to H.R. 1, the Republican tax/reconciliation package, by a vote of 218-214. President Donald Trump signed the package July 4.

The megabill includes numerous MBA-supported tax changes, increases the debt limit by $5 trillion, and contains spending cuts and energy, defense, and border security measures.

What they’re saying: MBA President and CEO Bob Broeksmit, CMB, in a press statement said, “MBA is pleased that the final tax package preserves or strengthens–and makes permanent–numerous pro-housing and pro-economic growth tax provisions that were identified by our Board-level Tax Task Force, led by 2025 Chair-Elect Christine Chandler and Vice Chair Owen Lee.”

Why it matters: Through direct advocacy efforts with Republican lawmakers and their key staff, MBA secured numerous tax policy changes that preserve, and in several cases enhance, key elements of the 2017 Tax Cuts and Jobs Act, including:

• Makes permanent the 2017 individual rate structure and increased standard deduction;
• Maintains and makes permanent the 20% deduction in current law for Qualified Business Income under Section 199A – and expands the deduction limit’s “phase-in” range;
• Allows 100% bonus depreciation for certain qualifying properties and restores/makes permanent full expensing for new capital investments;
• Temporarily raises the current state and local tax (SALT) deduction cap to $40,000, with a $500,000 income cap that grows annually by 1% until it “snaps back” after five years;
• Permanently caps eligible mortgage acquisition debt interest deductibility (HELOCs eligible) at $750,000;

Reinstates and makes permanent the deductibility of mortgage insurance premiums (subject to AGI limitations);

Makes durable enhancements to the Low-Income Housing Tax Credit (LIHTC) program, e.g., providing a permanent 12 percent increase in 9% credit authority, while permanently lowering the bond financing test from 50 to 25 percent;
• Makes a renewing set of rounds of the Opportunity Zones (OZ) program permanent – with needed reporting/programmatic tweaks;
• Permanently reinstates EBITDA for the calculation of business interest deductibility; and,

Significantly, does NOT alter the deferred tax treatment of MSRs, nor the tax code’s current “gain on sale” provision, Section 1031 Like Kind Exchange rules, carried interest provision, or capital gains rate.

What’s next: MBA is reviewing the legislation in greater detail and will provide a comprehensive summary of the tax provisions pertinent to real estate finance.

For more information, please contact Rachel Kelley at (202) 557-2816, Madisyn Rhone at (202) 557-2741, George Rogers at (202) 557-2797, Ethan Saxon at (202) 557-2913, Fran Mordi at (202) 557-2860, and/or Bill Killmer at (202) 557-2736.

Supreme Court Limits the Ability of District Courts to Issue Nationwide Injunctions

Recently, the U.S. Supreme Court held that District Courts have limited authority to issue nationwide preliminary injunctions. This case revolved around a challenge to an Executive Order limiting birthright citizenship, though the Court did not address the merits of the case.

• The Court held that the Judiciary Act of 1797 does not grant district courts the power to issue nationwide preliminary injunctions against acts from the Executive Branch. The Court believes that class-action lawsuits are the correct vehicle for obtaining relief for parties that are not named in the suit but still suffer harm from the government action.
• The Court did not address whether the Administrative Procedure Act authorizes federal courts to vacate federal agency action. For the time being, district courts still have the authority to issue nationwide preliminary injunctions against federal agency actions.

Go deeper: This decision means that only those individuals or organizations party to a lawsuit will benefit from an injunction against government action. Lawsuits brought forth by trade associations or membership organizations may now become more central to efforts to secure broader injunctive relief, especially in regulatory cases. This decision could lead to increased litigation, particularly class action lawsuits and may lead to a patchwork of enforcement of government policies, with different rules applying in different parts of the country. 

What’s next: MBA will keep members informed about any updates and whether the decision will affect its litigation efforts going forward.

For more information, please contact Justin Wiseman at (202) 557- 2854 or Alisha Sears at (202) 557-2390.

HUD Proposes Reconsideration of Energy Standards

Last Thursday, the Department of Housing and Urban Development (HUD) published a request for comments in the determination of impact of its 2021 updated energy building standards. The original Final Determination found that adoption of the energy codes would have no negative impact on the affordability and availability of housing. MBA argued that there would be a significant impact on the cost and feasibility of housing in many parts of the country.

Why it matters: Earlier this year, MBA urged the new HUD administration to rescind the energy code requirements in response to an Executive Order on lowering housing costs. In response, the Administration delayed the implementation of the rule while it reviewed its impacts. Reviewing the impact is the first step in a process that, in MBA’s view, should result in a full rescission of the rule.

What’s next: MBA will share its concerns about the cost impacts of the Rule within the 30 days after its published in the Federal Register.

Life Company Executives Convene for 2025 Senior Roundtable

Recently, MBA hosted its 2025 Life Company Senior Executive Roundtable at the Kimpton Monaco in Washington, D.C. The full-day event brought together senior executives from leading life companies to exchange insights on market conditions, policy developments, and evolving investment strategies.

Why it matters: The agenda covered a range of timely issues, including the CRE market outlook, life company lending practices, demand for debt from the general account, climate-related regulation, and the role of private credit finance.

• Executives discussed shifts in asset allocation, portfolio health, risk-adjusted return expectations, and areas of emerging concern. The conversation also explored MBA’s engagement efforts, such as the Life Company Database, councils, and leadership opportunities.

What’s next: MBA will incorporate feedback from the Roundtable into its advocacy and research agenda. Life company members are encouraged to stay engaged through upcoming forums, including MBA’s 2026 Commercial/Multifamily Convention & Expo, and to consider participating in MBA’s leadership opportunities and strategic councils. The next Life Company Council meeting will occur on July 15 at 11:00 AM EDT.

For more information, please contact Kelli Burke at (202) 557-2724.

Principal’s Rich Hill, Argentic’s Wade Swofford to Speak at July 10 MBA Private Credit Finance Council Meeting

Mark your calendar for July 10 at 3pm ET to attend MBA’s Private Credit Finance Council meeting.

Featured speakers and topics:

• Rich Hill, Principal Real Estate, will cover market conditions, interest rates, and international investment challenges.
• Wade Swofford, Argentic, will discuss loan performance and asset management in CRE CLOs.

Why it matters: Private credit is a rapidly growing capital source in commercial real estate finance, offering vital insights and networking opportunities for industry professionals.

Get involved: Email Tonya Wright or visit the MBA Website

MORPAC Action Week Finishes on High Note

MORPAC held its annual, industry-wide fundraising campaign from June 23 through July 1, with more than 20 participating MBA member companies.

• More than 500 individual contributors (45% new) collectively pledged $235,000 to MORPAC. MORPAC also hosted its two-part PAC Speaker Series event, with remarks offered by key members of the House Financial Services and Ways and Means Committees, Representatives Tim Moore (R-NC) and Jimmy Gomez (D-CA), respectively.
• A special thank you to our top five participating companies in terms of total dollars pledged during this important week: New American Funding, JLL, EPM, NorthMarq, and Lument.

Why it matters: MORPAC’s political capital is a powerful tool that helps MBA drive positive policy change, providing our fellow industry members with a platform to amplify their voices, educate decision-makers, and channel financial resources to support pro-industry candidates and advance MBA’s legislative agenda.

What’s next: MORPAC will continue to mobilize support to hit our $2.25 million fundraising goal for the 2026 election cycle. From MBA to you – thank you for your direct support of our advocacy efforts!

For more information on how to run a successful MORPAC campaign, please contact MBA’s Associate Director of Political Affairs, Erin Reilly at (202) 557-2751.

Upcoming MBA CREF Councils and Committee Meetings

MBA’s CREF Councils and Committees are a key way to connect to everything MBA has to offer around policy, advocacy, market intelligence and research, education, and networking. Councils and Committees are built around specific capital sources and serve as an opportunity for you to join other commercial real estate finance professionals to hear from experts, discuss opportunities and challenges, and connect with peers.

What’s next: Upcoming virtual meetings include:

• Private Credit (Non-bank) Council: July 10
• Life Company Council: July 15
• Servicer Council: July 17
• Structured Finance Council: Aug. 6
• Bank Council: Sept. 24
• Commercial Council: September

For more information, click on the links above, please contact Kelli Burke at (202) 557- 2742.

Register: MBA’s mPact Summit on Aug. 5

Young professionals, meet us in the nation’s capital for a full day of career development and networking on Tuesday, Aug. 5, 2025. Back by popular demand, this event is built by young professionals in the real estate industry, for young professionals, and focused on helping you get to the next level.

Why it matters: The mPact Summit isn’t just about career tips, it’s about empowerment, connection, and growth! The summit will provide the tools, confidence, and network to thrive and help you become tomorrow’s leaders.

For more information, please contact Jacky Salazar at (202) 557-2746

Upcoming MBA Education Webinars on Critical Industry Issues

MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:

• Essential Overview of Commercial/Multifamily Business Income Insurance – July 15
• Navigating Coverage and Risk for Commercial Catastrophic Insurance – July 21
• Practical Application of Distressed Asset Valuation – Case Examples and Lender Perspectives – Aug. 13
• Using Ordinance and Law Insurance to Protect Your Property and Business Recovery – Aug. 27
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – Sept. 9

MBA members can register for any of the above events and view recent webinar recordings by clicking here.

For more information, please contact David Upbin at (202) 557-2931.

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