Under current law, carried interest is subject to a tax rate of 15% because it is classified as a capital gain. If the proposed law were to be enacted, carried interest will be classified as ordinary income that is taxed at 35%.

The National Association of Home Builders is working closely with both the House Ways & Means Committee and the Senate Finance Committee—as well as other real estate organizations—to express our industry’s opposition to this proposed legislation. We, as members, must get directly engaged in this issue by letting our members of Congress—especially those who serve on the House Ways & Means Committee—know about our opposition. The Committee is expected to take up the bill as early as next week, so your immediate action is critical.

Linked to this letter you will find a sample letter drafted by NAHB for your use on this issue, as well as a list of the Members currently serving on the House Ways & Means Committee. Here are some concrete steps you can take to address the issue:

• Take advantage of NAHB’s national grassroots action program, BuilderLink. A copy of the attached sample letter already has been posted at http://www.capitolconnect.com/builderlink/ so you can easily e-mail copies to your congressional representatives;
• Personalize the letter by inserting a short description of your business, particularly how many units you develop or own and the areas in which you develop and how such legislation would impact you;
• Print the letter on your business stationery and mail immediately to your own representative and to any member of the House Ways & Means Committee who represents an area where your firm is currently doing business.  (View the list of members and the Zip codes they serve.) The letter can be copied from the Capitol Connect website listed above;
• If you have a personal relationship with any Committee members, please call them to express your strong opposition to this legislation; 
• Please ask all your officers, directors and key associates to send letters as well;
• Keep NAHB informed of the contacts you make either by e-mailing a copy of the letters to multifamily@nahb.com or by sending a list of the Members whom you have contacted by phone. (Please note that if you use the Capitol Connect website to e-mail your representatives, NAHB will automatically be notified.)
• If you have any questions or would like more details on this urgent issue, please e-mail NAHB’s Greg Brown, or call him at 800-368-5242 x8421.

NAHB will keep you up-to-date on this issue moving forward. Thank you for your quick attention to this request and for your continued support of NAHB Multifamily.