HousingWire Daily CREFC’s David McCarthy on the reconciliation tax bill
May 6, 2025
In this engaging discussion, David McCarthy, Managing Director at the CRE Finance Council, shares insights on the reconciliation tax bill and its major implications. He breaks down regulatory shifts under the Trump administration and speculates on the futures of Fannie Mae and Freddie Mac. McCarthy also highlights challenges in commercial real estate, including loan delinquencies and rising interest rates, while emphasizing the urgent need for federal intervention in the affordable housing crisis.
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Reconciliation Bill Overview
- The reconciliation bill expedites tax and spending legislation without needing 60 Senate votes.
- It includes reauthorizing 2017 tax cuts and debates over raising state and local tax deduction limits.
Impact of Business SALT on CRE
- Business SALT could limit deductions on property taxes, impacting commercial real estate finances.
- It complicates underwriting by potentially creating federal tax burden despite zero net income.
Advocating Smart Deregulation
- Focus regulators on removing bad regulations that serve no one and complicate real estate financing.
- Push for sensible reforms that ease commercial real estate and multifamily housing markets.