Industry Watches Pending Hill Business

WASHINGTON, DC-So far so good. That is the consensus among organizations representing the commercial real estate industry on Congressional actions this year. The most important measures: extending capital gains and dividend cuts and extending a 15-year leasehold improvement depreciation and immediate deductibility for brownfields cleanup costs have either passed or are expected to pass within the month.

Overshadowed by these high profile issues, though, are pending issues that industry advocates are hoping will receive favorable treatment as well. One is the refunding of the New Market Tax Credits, which is similar in concept to the Low Income Housing Tax Credit profile. The subsidy program has strong bi-partisan support on the Hill, says Karen M. Williams, attorney and shareholder at Lane Powell. The only question remains is, at what level? Another measure, however, the Realistic Roofing Tax Treatment Act, is very unlikely to move forward this year, according to Jason Todd, director legislative and regulatory affairs for the Building Owners and Managers International here.

Established in 2000, NMTC is a public-private federal program that provides funds to support commercial, industrial and retail real estate projects in low-income areas. Supporters of the program are hoping for a higher allocation this time around as funding that was originally provided was vastly oversubscribed by users, Williams says.