ALTA Celebrates Legislative Advances in Tax Package that Benefits Real Estate and Housing Markets

Support From ALTA for Key Tax Provisions in Real Estate

On July 3, 2025, the American Land Title Association (ALTA) expressed gratitude following Congress's approval of a significant tax and reconciliation package. This legislation aims to maintain crucial provisions that directly impact the real estate and housing sectors.

ALTA, which serves as the national trade association for the land title insurance and settlement services industry, has long championed policies that bolster housing development and promote property investment. In an official statement from ALTA's CEO, Chris Morton, he emphasized the necessity of federal policies that enhance economic mobility and housing growth. Morton stated, "We are encouraged to see lawmakers preserve and enhance provisions vital for a strong real estate market."

Among the key provisions retained in the tax package are the Qualified Business Income (QBI) deduction, the preservation of Section 1031 like-kind exchanges, and the expansion of Opportunity Zones and Low-Income Housing Tax Credit programs. Each of these adjustments plays a pivotal role for title and settlement companies, particularly those classified as pass-through entities, enabling them to benefit from a 20% QBI deduction under Section 199A.

The 1031 exchange law remains an essential tool for real estate investors, facilitating ongoing property investment while also attracting new development in both residential and commercial realms. The package also increases the cap on the State and Local Tax (SALT) deduction, providing much-needed relief for homeowners in areas with high living costs.

In terms of bolstering affordable housing initiatives, the legislation solidifies permanent mortgage interest deductibility and enhances funding for Opportunity Zones. These efforts are aimed at increasing accessibility to affordable housing and revitalization projects that can significantly uplift various communities.

Morton asserted, "Real estate and housing play a critical role in the health of the U.S. economy. We commend House and Senate leadership, as well as President Trump, for their commitment to preserving tax provisions that support property investment, small businesses, and the broader housing economy."

The ALTA highlighted its continued advocacy for policies that tackle housing affordability, enhance consumer protection, and reinforce the title industry's role in safeguarding property rights. Founded in 1907, ALTA represents over 6,000 professionals in the land title insurance industry, including title insurance companies, agents, and real estate attorneys. Members conduct essential services such as title searches and closings, ensuring that property owners and mortgage lenders are shielded against title defects.

This recent legislative success underlines the collaboration between government bodies and organizations like ALTA in fostering an environment conducive to real estate growth and economic stability. As policies evolve, ALTA remains committed to championing the interests of its members and advocating for strategies that fortify the backbone of America's real estate sector.