Carried Interest Fight Returns to Washington, DC; Take Action Now

The prospect of Congress changing the tax treatment of carried interest has been in the news lately. 

Preserving the capital gains rate of carried interest remains a top priority of ICSC.  In a recent survey of ICSC members, 49% report that more than half the deals they are working on would not have been made without carried interest. Congress and the Administration need to know that maintaining the current provision is valuable to thousands of small and family-owned CRE businesses across the country.

The capital gains treatment of carried interest in CRE–often called “the promote”–is based on the real risk associated with creating a successful neighborhood shopping center, including unforeseen environmental remediation, meeting loan guaranties, and finding the right mix of tenants to meet changing consumer preferences. 

Democratic lawmakers have also introduced legislation to increase taxes on carried interest.  The so-called “Carried Interest Fairness Act” (S. 445/H.R. 1091) was introduced by Senator Tammy Baldwin (D-WA) and Representatives Marie Gluesenkamp Perez (D-WA-3) and Don Beyer (D-VA-8).  Any of these potential tax changes would create a significant chilling effect on local economic development initiatives across the country.

Click here to take action and urge Congress to oppose changes to carried interest.

If changes to the carried interest rules would negatively impact you or your business, and you want to get involved with our advocacy efforts aimed at preserving the existing capital gains treatment, please contact Phillips Hinch at phinch@icsc.com.