Greater Charlotte Apartment Association

NAA/NMHC Legislative Alert

Ask Congress to Oppose a Potentially Devastating Tax Increase on Real Estate Partnerships (”Carried Interest”)

Timing is Critical - Please Act Now!

Overview  

Congress is giving very serious consideration to an Administration-supported proposal that would significantly increase the tax burden on real estate investment partnerships by changing the taxation of the promote interest (also known as the “carried interest”) in those transactions. This could be potentially devastating to the apartment industry if enacted. 

We need your help to educate Congress about the chilling effect this large tax increase would have on the commercial real estate industry and the damage it would do to local economic development/revitalization efforts throughout the country. 

In recognition of the serious harm this legislation could have, both the U.S. Conference of Mayors and the National Association of Counties recently adopted official positions opposing it and urging Congress and the Administration to maintain current law.

Background

The House has passed a tax extension bill (H.R. 4213) that is paid for with a carried interest tax increase. The Senate-passed version uses a “black liquor” provision that taxes an alternative fuel used mainly in the paper industry.

The final bill was expected to drop the carried interest tax increase and adopt the “black liquor” provision; however, the new health care law used “black liquor” as a funding source. Because that revenue source is now gone, there is now more pressure on House-Senate negotiators to enact the carried interest tax increase provision.

Click here to Take Action Now!

If you have any questions, please feel free to contact Jim Arbury, NAA/NMHC’s Senior Vice President of Government Affairs, at jarbury@nmhc.org or 202/974-2300.