Core Perspective - The U.S. is revisiting a tax proposal aimed at stimulating new construction amid a persistent housing crisis, but experts believe it may primarily benefit investors and developers without significantly addressing the housing shortage [1]. Group 1: Proposal Details - The proposal allows real estate developers to take an immediate tax deduction for construction costs, rather than depreciating them over several years [2]. - Senator Lisa Blunt Rochester plans to introduce the Rental Housing Investment Act, which would enable builders to deduct up to $150,000 per unit in construction costs immediately, and up to $250,000 for projects with income-restricted units [3][4]. Group 2: Historical Context and Impact - A similar tax law change in the 1980s led to a 41% increase in multifamily building construction in the following five years, a level of building not seen since 1986 [5]. - The U.S. currently faces an estimated housing shortage of around 4 million units, with multifamily developments being costly and complex to finance [6]. Group 3: Expert Opinions - Some tax professionals express skepticism about the proposal's potential effectiveness, suggesting that accelerated depreciation alone may not lead to significant changes in real estate development [7][8].