Policies that Biden is proposing:
1. Reinstate the Affirmatively Furthering Fair Housing rule, which had been repealed in July by Trump. The 2015 rule required local governments receiving federal housing financing to devise plans to address discriminatory housing practices in their communities.
2. Biden has pledged to spend $640 billion on affordable housing over the next decade.
3. A Biden presidency could also mean changes to 1031 exchanges: He has pitched making them available only to those making less than $400,000 a year.
4. Re-establish the First-Time Homebuyers’ Tax Credit, which was originally created during the Great Recession to help the housing market. Biden’s updated homebuyers’ credit, referred to as “First Down Payment Tax Credit,” would provide up to $15,000 for first-time homebuyers.
5. Building off of a temporary tax credit expanded as part of the Recovery Act, this tax credit will be permanent and advanceable, meaning homebuyers receive the tax credit when they make the purchase instead of waiting to receive the assistance when they file taxes the following year.
Of course, none of this is a given. The President can’t make any changes on his own. Congress has to pass legislation to adjust taxes and then send the bill to the President for signature. If the Senate remains in Republican control, getting new tax legislation passed without many compromises may be difficult to achieve. So time will tell on these proposals
Another huge factor, of course, is how quickly the pandemic can be under control. The sooner business can get back to production, the sooner the economy will get back on its feet.