ICSC held meetings this week several members of the tax-writing committees from both parties to discuss key commercial real estate issues, including like-kind exchanges, the 20% pass-through deduction, the promote/carried interest and development incentives.
Attendees included ICSC President & CEO Tom McGee, ICSC Vice President for Tax Policy Phillips Hinch, Capital Square Executive Vice President for Development Natalie Mason, Co-Founder & Managing Partner of LLD Enterprises David Dworkin and Vice President Controller for Stirling Properties Jared Lauderdale.
Meetings were held with the offices of Representatives Mike Kelly (R-PA-16), Beth Van Duyne (R-TX-24), Don Beyer (D-VA-8), Claudia Tenney (R-NY-24), David Schweikert (R-AZ-1), Lloyd Smucker (R-PA-11) and Majority Leader Steve Scalise (R-LA-1). McGee also met with U.S. House Minority Leader Hakeem Jeffries (D-NY).
Many provisions included in the Trump era Tax Cuts and Jobs Act (TCJA), like the 20% pass-through deduction (Sec 199A), expire at the end of 2025. This will create a catalyst for significant legislative action in the tax space next year.
Some estimates to extend all of the TJCA cuts exceed $5 trillion over 10 years (extending the pass-through deduction alone could cost $600 billion). The steep price tag combined with renewed attention on the federal debt create an “everything is on the table” environment, particularly with respect to tax changes that would raise revenue, like carried interest.
For more information or to become involved in ICSC’s efforts, please email gpp@icsc.com.
Phillips Hinch (ICSC), Natalie Mason (Capital Square), ICSC President & CEO Tom McGee, David Dworkin (LLD Enterprises) and Jared Lauderdale (Stirling Properties).