WASHINGTON, Dec. 22, 2017 /PRNewswire-USNewswire/ -- NAIOP, the commercial real estate development association representing more than 19,000 developers, owners, investors and practitioners, welcomes the Tax Cuts and Jobs Act of 2017, signed today by President Donald J. Trump after being passed by Congress this week. The bill is expected to boost economic growth by reducing tax rates and simplifying the tax code.
"This legislation represents an important victory for NAIOP members and the commercial real estate industry. The first major tax reform in more than three decades, the Act recognizes the important contribution that commercial real estate is making to the economy by supporting pro-growth initiatives and acknowledging the long-term nature of commercial real estate investment," said Thomas J. Bisacquino, NAIOP president and CEO.
Bisacquino notes that this reform will:
- Preserve Section 1031 like-kind exchanges for real estate.
- Continue taxing real estate carried interests held for three years as capital gains.
- Preserve the deductibility of business interest expense for real estate trades or businesses.
- Reduce the tax rate for many pass-through businesses, including many in real estate.
- Lower the tax rate for corporations to 21 percent.
- Double the estate tax exemption.
- Retain in part the historic preservation and rehabilitation tax credit, the New Markets Tax Credit, and the tax exemption for private activity bonds (PABs).
"A landlord can only do as well as his or her tenants," Bisacquino adds. "Our expectation is that this tax reform legislation will result in long-term economic growth and job creation for our nation."
Download a more in-depth examination of some provisions of the Act: https://www.naiop.org/-/media/Advocate/TaxReform2017-BillDetails.ashx?la=en