The NAHB and Air-Conditioning, Heating and Refrigeration Institute are applauding the Trump administration’s tax reform proposals.

On Wednesday, President Donald J. Trump said he would seek to enact major cuts in personal and business taxes, capping the tax rate for businesses at 15 percent and instituting only three rates for individuals: 10, 15 or 35 percent. There are currently seven individual tax brackets, ranging from 10 percent to 39.6 percent.

The National Association of Home Builders thanked the president for suggesting the changes but worried that they may affect the popular mortgage interest deduction.

"NAHB commends President Trump for tackling tax reform and keeping the mortgage interest deduction as one of two individual deductions,” said Granger MacDonald, NAHB chairman and a home builder and developer from Kerrville, Texas. “However, doubling the standard deduction could severely marginalize the mortgage interest deduction, which would reduce housing demand and lead to lower home values.

AHRI President and CEO Stephen Yurek said making the corporate tax rate more competitive with other countries would boost investment and the number of jobs in the U.S.

"We are encouraged by the president's willingness to work with Congress to make needed reforms to our tax system," Yurek said. "We look forward to working with the administration and Congress on ways to improve the current system and spur economic growth by allowing companies to expense the full cost of capital equipment in the tax year purchased, or at least reduce the depreciation period to be more aligned with the useful life of our equipment.”