Author: abigail_grenadier

Roundtable Urges Second Circuit Court of Appeals to Preserve Employment Tax Exemption for Limited Partners

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The Real Estate Roundtable (RER) filed an amicus brief this week with the Second Circuit Court of Appeals in Soroban Capital Partners LP v. Commissioner, a case that challenges the IRS’s restrictive interpretation of the “limited partner exception” from self-employment (SECA) taxes under section 1402(a)(13) of the tax code. (Amicus Brief, Dec. 15)

Why It Matters

  • Income-producing real estate—rental housing, neighborhood shopping centers, office buildings, etc.—is predominantly owned and operated in partnership form. In 2022, there were over 2.2 million real estate partnerships in the United States, with nearly 9.6 million partners.
  • The Self-Employment Contributions Act (SECA) imposes Social Security and Medicare taxes on net earnings from self-employment. The SECA tax rate on earnings above $250,000 is 3.8%. While the tax applies to a broad range of trade or business income, Congress expressly exempted limited partners from SECA in the Social Security Amendments of 1977.
  • Legislative proposals and proposed regulations have unsuccessfully attempted to extend the 3.8% SECA tax or the 3.8% net investment income tax to limited partners.
  • The IRS has undertaken an aggressive effort to redefine what it means to be a limited partner by challenging taxpayers and litigating the issue in several cases before the Tax Court.

Roundtable View

  • Real estate partnerships have relied for decades on longstanding tax law as it relates to limited partners and the SECA exception.
  • In Soroban and related cases, the Tax Court has imposed a judge-made test and concluded contrary to decades of established state law that a limited partner must be a ‘passive investor,’ notes the RER amicus brief.
  • The Tax Court’s 2023 Soroban ruling wrongly introduced a federal “passivity” requirement that is unmoored from statute, legislative history, and Treasury’s own prior interpretations. However, limited partners have routinely provided business services to their partnerships without losing their limited liability status. (Roundtable Weekly, Sept. 12)
  • “A shift in the federal tax definition of a limited partner could alter underlying partnership economics, increase tax burdens, and create significant uncertainty for real estate and other pass-through businesses,” said RER President and CEO Jeffrey DeBoer. “Such changes need to go through Congress and withstand legislative scrutiny.”

Background

  • RER’s amicus brief was drafted by litigation counsel at Sullivan & Cromwell LLP, in consultation with RER’s Tax Policy Advisory Committee (TPAC). RER also filed an amicus brief in August
    with the First Circuit Court of Appeals in a related case, Denham Capital Management LP v. Commissioner. (Roundtable Weekly, Sept. 12)

Next Steps

The decision in any of the pending cases could have nationwide implications for how partnerships are treated under SECA. A ruling against the Tax Court’s passive investor test would reinforce state law’s central role in defining “limited partner” status.

Roundtable Urges IRS to Issue Transition Guidance for Opportunity Zones

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The Real Estate Roundtable (RER) submitted a comment letter this week, urging the Treasury Department and IRS to issue expedited guidance to ensure Opportunity Zone (OZ) investment continues uninterrupted in 2026 as the program transitions from Opportunity Zones 1.0 to the permanent Opportunity Zones 2.0 framework enacted in the One Big Beautiful Bill (OB3) Act. (Letter, Dec. 19)

Roundtable Advocacy

  • In a letter to IRS Chief Counsel (Acting) Kenneth Kies, RER called on the agency to issue a Revenue Procedure confirming that investments in existing Tax Cuts and Jobs Act (TCJA) qualified opportunity funds (“QOFs”) and qualified opportunity zone businesses (“QOZBs”) will continue to qualify for OZ benefits after zone designations lapse, provided the investments are consistent with the QOZB’s working capital plan.
  • RER warned that, absent clear transition rules, investors in 2026 will face uncertainty over whether to proceed with TCJA OZ projects or wait for new zone designations expected to take effect in 2027—risking a slowdown in capital deployment to distressed communities.
  • The OB3 Act made OZs permanent and expanded key incentives, but also raised questions about compliance testing, QOF asset requirements, and treatment of projects that span the transition period between expiring and newly designated zones.

Why It Matters

IRS building in Washington, DC
  • RER emphasized that OZs have mobilized more than $120 billion in private capital nationwide, supporting affordable and workforce housing, retail, mixed-use developments, and small-business growth in low-income communities.
  • Without timely IRS action, uncertainty could delay projects already underway, disrupt financing, and undermine the long-term policy goals Congress reinforced by making the program permanent.
  • RER urged the IRS to adopt a clear “safe harbor” allowing certain TCJA OZ projects to be treated as “grandfathered” for compliance purposes if their working capital plans contemplated development before zone designations expired and investments remain consistent with those plans.

Prompt administrative guidance is essential to prevent a policy gap in 2026 and keep capital, jobs, and housing investment flowing to the communities OZs were designed to serve. OZs will be discussed at the next in-person TPAC meeting at RER’s State of the Industry Meeting scheduled for Jan. 21-22, 2026.

House Committee Advances Roundtable-backed Housing Package and Flood Insurance Bill

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This week, the House Financial Services Committee (HFSC) advanced 20 bills during a two-day markup session—including the bipartisan Housing for the 21st Century Act (H.R. 6644), which contains numerous reforms championed by The Real Estate Roundtable (RER) and a coalition of national real estate and housing organizations. (Letter, Dec. 15)

Comment Letter Highlights

  • Ahead of the two-day markup session, RER and a coalition of 11 other housing, finance, and real estate groups sent a letter to HFSC Chair French Hill (R-AR), Ranking Member Maxine Waters (D-CA), and housing subcommittee leaders expressing support for the Housing for the 21st Century Act and the committee’s broader efforts to expand affordable housing. (Letter, Dec. 15)
  • The coalition commended the committee’s bipartisan approach and highlighted H.R. 6644 as a “meaningful step toward addressing one of the most urgent challenges facing our nation: expanding housing supply for both renters and homeowners and improving affordability for working families.”
  • The letter focused on key provisions of the HFSC’s bill, such as modernizing and streamlining federal housing programs, removing unnecessary federal requirements, expanding financing pathways, promoting manufactured housing as cost-effective solutions, and more.
  • The coalition also warned that housing affordability is driven by sustained underproduction, rising construction costs, regulatory delays, and outdated standards, and emphasized that no single policy change can address these pressures alone.

Housing for the 21st Century Act Advances

  • Co-sponsored by Chair Hill and Ranking Member Waters, the Housing for the 21st Century Act received near-unanimous support this week—with the Committee voting 50-1 for its passage.
  • The Housing for the 21st Century Act incorporates some elements of the bipartisan ROAD to Housing Act, which was approved by the Senate in October before stalling after House Republicans signaled they wanted more scope to advance their own housing legislation. (Roundtable Weekly, Dec. 12)
  • A key feature of the House’s bill is an update to the HOME Investment Partnerships Program aimed at reducing red tape and expanding eligibility.
  • The bill also streamlines environmental review rules and enhances oversight of housing providers, among a range of other reforms.  
  • Chair Hill called the bill “historic” and said that it will “get to the root of the housing affordability challenges our country has experienced for the last several years.” (Chair Hill Press Release, Dec. 17)
  • The measure is now expected to go to a House floor vote in early 2026. (Housing Wire, Dec. 17) 

NFIP Reauthorization Advances

  • Additionally, the HFSC advanced the NFIP Extension Act of 2026 (H.R. 5577) to reauthorize the National Flood Insurance Program through Sept. 30, 2026.
  • While lawmakers emphasized the need for long-term reform, there was broad consensus that avoiding a lapse is essential ahead of the program’s Jan. 19 expiration.
  • RER has consistently supported long-term NFIP authorization and program reform.

RER will continue to engage with policymakers in support of legislation that increases housing supply and ensures that property owners can access the insurance protection that they need from increasingly costly natural disasters.

SPEED Act Passes House, Setting Stage for Senate Permitting Talks

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The U.S. House of Representatives passed the bipartisan SPEED Act (H.R. 4776) on Thursday by a 221–196 vote, advancing legislation aimed at streamlining federal permitting reviews to accelerate energy and infrastructure development amid surging electricity demand and rising power costs. (Axios, Dec. 18)

State of Play

  • Sponsored by House Natural Resources Committee Chair Bruce Westerman (R-AR) and Rep. Jared Golden (D-ME), the SPEED Act would overhaul the National Environmental Policy Act (NEPA) by reducing duplicative reviews, curbing excessive litigation, and increasing certainty for large-scale grid improvements and other infrastructure development requiring federal approval.
  • The House’s passage of the SPEED Act marks a significant step in a broader congressional push to modernize permitting rules and address long-standing bottlenecks slowing investments in power generation, transmission, and distribution projects.
  • “For too long, America’s broken permitting process has stifled economic development and innovation,” Chair Westerman said following the vote. “This historic vote on the SPEED Act will fix the system by establishing the project certainty that’s currently lacking in the permitting process and allow America to build again.” (PoliticoPro, Dec. 18, Rep. Westerman Weekly Column, Dec. 19)
  • 11 Democratic votes in favor of the measure demonstrated bipartisan momentum heading into Senate consideration.
  • In the Senate, key negotiators acknowledged the House GOP’s internal challenges but welcomed the bill’s passage. Senate Environment and Public Works Chair Shelley Moore Capito (R-WV) said the House vote “will give us good momentum,” while Ranking Member Sheldon Whitehouse (D-RI) emphasized his focus on producing a bipartisan Senate bill. (PoliticoPro, Dec. 18)
  • The Trump administration has expressed support for congressional action on permitting reform, but has not taken a position on the SPEED ACT. (PoliticoPro, Dec. 8)

Roundtable Advocacy

  • Ahead of the procedural vote earlier in the week, The Real Estate Roundtable (RER) joined a broad business coalition led by the U.S. Chamber of Commerce in support of the SPEED Act. (Dec. 16 Letter)
  • RER also wrote to congressional leadership last week, urging passage of the bill, citing the need to strengthen grid reliability, lower energy costs, and keep pace with rapidly rising electricity demand. (Letter, Dec. 8)
  • In its letter, RER emphasized that the U.S. needs “as much electricity as possible, from as many sources as possible, delivered as quickly and cheaply as possible” to support economic growth, re-shore manufacturing, and maintain global competitiveness in artificial intelligence. (Roundtable Weekly, Dec. 12)

What’s Next

  • The bill now heads to the Senate, where it is expected to spur broad cross-committee negotiations involving the Energy and Natural Resources Committee and the Environment and Public Works Committee. (Axios, Dec. 18)
  • The House vote “doesn’t get any easier” for the SPEED Act to make it all the way through Congress, as the “political opening is extremely narrow” in the Senate. (Axios, Dec. 19)
  • The legislation faces opposition from some Senate Democrats who seek further protections to advance wind and solar development. At least seven Democrats would be needed to overcome a filibuster. (Bloomberg, Dec. 18)
  • Despite divisions, several Senate Democrats have signaled interest in crafting a permitting compromise capable of securing the 60 votes required for passage. (Axios, Dec. 18)

Permitting reform will be a featured topic at RER’s next all-member State of the Industry Meeting on Jan. 21–22, 2026, in Washington, D.C., as policymakers consider strategies to accelerate energy infrastructure and support long-term economic growth.

Roundtable Weekly Will Resume Publication on January 9, 2026

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The Roundtable’s policy news digest will resume publication on Friday, January 9, 2026.

Recent issues of Roundtable Weekly can be searched by keyword here.

Fed Cuts Rates Again Amid Split Outlook; Hearing Targets Capital Rules

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The Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points for the third straight meeting, lowering the federal funds target range to 3.50-3.75 percent. Fed Chair Jerome Powell emphasized that while policy is easing, the bar for additional reductions in early 2026 remains high.

Fed’s Decision

  • The Federal Open Market Committee (FOMC) vote was 9-3, with two policymakers preferring to hold rates steady and one seeking a deeper cut. (CNBC, Dec. 10)
  • Chair Powell said policy is “well positioned,” but stressed decisions are not on a preset path, citing mixed inflation signals and slowing but still resilient labor conditions. (Watch Press Conference)
  • The Chair noted that the latest projections show only one rate cut expected in 2026, signaling a potential pause in additional easing absent clearer labor and inflation trends.
  • Officials highlighted labor market softening as a key factor, with Chair Powell acknowledging it’s a “labor market that seems to have significant downside risks,“ even as inflation remains elevated.
  • He also expressed some optimism about growth, with the FOMC raising its outlook for 2026 GDP by half a percentage point, to 2.3 percent. (CNBC, Dec. 10)

Housing and CRE Outlook

  • Rate cuts alone won’t materially reprice CRE, as valuations and returns depend on multiple factors beyond monetary policy, and CRE has historically performed well even in higher-rate environments, industry analysts noted. (Connect CRE, Dec. 10)

  • Multifamily and industrial have already benefitted from the current rate environment, with multifamily development borrowing costs falling from 7.5-9 percent to ~6-7.25 percent and industrial cap rates expected to compress modestly. (Connect CRE, Dec. 10)

  • Commercial Mortgage-Backed Securities refinancing challenges remain acute, as lenders are unwilling to extend maturities without new borrower equity or substantive restructuring proposals. (Commercial Observer, Dec. 10)

Congressional Oversight & Capital Framework

  • At a House Financial Services Subcommittee hearing Thursday, witnesses largely urged regulators to calibrate the emerging Basel III Endgame proposal to support competitiveness, credit availability, and economic growth. (Watch Hearing)
  • Andrew Olmem (Partner, Mayer Brown) emphasized that capital decisions are policy choices: “Improperly calibrated requirements can reduce credit, raise borrowing costs, and slow wealth creation.”
  • GOP leaders on the subcommittee stressed the need for a tailored, data-driven framework that avoids the “gold-plated” standards identified by the Basel Committee.
  • Subcommittee Chair Andy Barr (R-KY) stated that the initial Basel III Endgame proposal was “deeply flawed” and pointed out that it has received bipartisan criticism. (Rep. Barr Press Release, Dec. 11)  

RER Advocacy

  • Thursday’s hearing was the latest in a series of recent steps policymakers have taken toward re-evaluating bank capital requirements.
  • Last week, RER and a coalition of leading business trade organizations encouraged prudential regulators to adopt requirements for large banks that support consumers, businesses, and the broader economy. (Roundtable Weekly, Dec. 5)

RER will continue to advocate policies that protect the safety and soundness of our financial system without harming credit flows and capital formation vital for CRE.   

House Introduces Bipartisan Housing Package

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The House Financial Services Committee introduced a bipartisan housing package, the Housing for the 21st Century Act on Thursday, aimed to streamline housing development and improve affordability by updating outdated programs, removing unnecessary federal requirements, and increasing local flexibility. (One-pager; Text of the bill; Section-by-Section)

Housing for the 21st Century Act

  • House Financial Services Chairman French Hill (R-AR), Ranking Member Maxine Waters (D-CA), Subcommittee on Housing and Insurance Chair Mike Flood (R-NE) (who will be speaking at the joint RECPAC/Research Committee meeting on Jan. 21), and Subcommittee on Housing and Insurance Ranking Member Emanuel Cleaver (D-MO) unveiled the bipartisan legislation Thursday, proposing targeted updates to HUD programs, expand manufactured and affordable housing, and modernize local and rural development tools.
  • Chairman Hill said, “Our goal is to chart a path forward toward greater development capacity and a simplified regulatory framework. We look forward to moving this bill through regular order and working with our Senate counterparts in the new year to get a bill signed into law that reflects ideas from both chambers and delivers real results for American families.” (Press Release, Dec. 11)
  • Subcommittee Chair Flood added, “As housing gets more expensive, the American Dream of homeownership is slipping away for working families. This package is the product of bipartisan work in the Financial Services Committee to address some of the core issues driving up the cost of housing.”
  • The committee plans to integrate aspects of the Senate’s Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651) with additional measures from the House Financial Services Committee.
  • One major distinction in the House bill is a provision to overhaul the HOME Investment Partnerships Program. (WashingtonExaminer, Dec. 11)

Senate – ROAD to Housing Act

  • The ROAD to Housing Act was ultimately excluded from the final text of the 2026 National Defense Authorization Act. (HousingWire, Dec. 8)
  • The bill incentivizes states and cities to boost housing supply by cutting red tape, streamlining federal inspections, and eliminating duplicative regulations. (Roundtable Weekly, Oct. 17, Aug. 1 )
  • The Senate’s bipartisan package advanced earlier this year with unanimous committee support in July and received full Senate approval in October, but House Republicans signaled they wanted more flexibility to advance their own housing legislation. (Multifamily Dive, Dec. 10)
  • Ranking Member Waters stated, “While I was disappointed ROAD was not included in the NDAA, there is clearly broad bipartisan support in both Chambers to advance housing legislation.”

The House Financial Services Committee intends to mark up its housing package next week, along with 20 other bills on the National Flood Insurance Program and community banking, among others. (PoliticoPro, Dec. 11)

The Roundtable’s Jeffrey DeBoer Recognized as One of DC’s “Top Lobbyists” for 2025

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The Real Estate Roundtable (RER) President & CEO Jeffrey DeBoer was  recognized this week as one of the “Top Lobbyists” in Washington, D.C. for 2025, according to the prominent policy news publication, The Hill. This marks the eighth consecutive year that DeBoer has received this honor. (The Hill, Dec. 11)

  • The publication noted their annual list highlights the “industry’s savviest, most influential and well-connected advocates” who have made a meaningful impact on the course of policy and politics over the past year.
  • DeBoer stated, “I am honored to receive this recognition. And I share it with The Roundtable’s exceptional advocacy team and our deeply engaged membership. Together, we navigated the unprecedented pace and complexity of national policy debates this past year. From safeguarding long-standing tax rules in the historic One Big Beautiful Bill Act and preserving the ENERGY STAR program to pushing back on proposals that would have undermined real estate credit or discouraged investment, we ensured that the industry’s priorities were reflected in legislation that strengthens local budgets, economic growth, and job creation.”
  • DeBoer added, “We will continue working with policymakers to advance practical, pro-growth solutions that strengthen local economies, modernize energy and permitting systems, expand housing opportunities, and enhance long-term competitiveness.”

Roundtable on the Road

  • This week, Roundtable on the Road held a member gathering in Dallas hosted by RER Board members Ross Perot, Jr. (Chairman, Hillwood; Chairman, The Perot Group) and Kenneth Valach (CEO, Crow Holdings Development), along with RER member Michael Levy (CEO, Crow Holdings). The event brought together local real estate leaders for a candid discussion about federal policy developments in Washington and market conditions across the Southwest.
  • RER Chair Kathleen McCarthy (Global Co-Head, Blackstone Real Estate) and President & CEO Jeffrey DeBoer outlined the organization’s 2026 priorities and heard directly from members about challenges and opportunities facing regional markets.
  • RER SVP & Counsel Ryan McCormick spoke at the AICPA conference in Las Vegas this week, outlining the major tax issues shaping real estate investment, including the implications of the One Big Beautiful Bill Act, partnership tax developments, and the political outlook for additional tax changes in 2026. He emphasized that even modest adjustments to long-standing tax rules can significantly affect capital formation, investment decisions, and the economics of real estate ownership. (AICPA Conference – Watch Session)

All RER policy advisory committees will meet in person at the State of the Industry Meeting scheduled for Jan. 21-22, 2026.

Roundtable Urges Congress to Pass Bipartisan SPEED Act to Advance Energy Permitting Reform and Support Grid Demand

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The Real Estate Roundtable (RER) wrote to congressional leadership this week, urging passage of the bipartisan SPEED Act (H.R.4776), calling the bill essential to strengthening grid reliability, lowering energy costs, and keeping pace with surging electricity demand. (Letter, Dec. 8)

Roundtable Advocacy

  • The House is expected to vote next week on the SPEED Act, the centerpiece of a broader GOP push to overhaul NEPA reviews and ease longstanding permitting bottlenecks.  (Letter, Dec. 8)
  • In the letter, RER emphasized that the bill is critical to improving energy affordability, meeting surging electricity demand, and ensuring the grid can support U.S. families, job creators, and long-term economic competitiveness. The current patchwork of federal reviews delays the delivery of affordable, reliable power to homes and commercial buildings.
  • RER noted the U.S. needs “as much electricity as possible, from as many sources as possible, delivered as quickly and cheaply as possible” to lead in artificial intelligence, re-shore manufacturing, and maintain global competitiveness.
  • Duane Desiderio, RER Senior Vice President & Counsel, stated, “Reliable, affordable power is essential to the buildings that support our communities and economy. Modernizing permitting is critical to improving energy affordability, strengthening the grid, and reducing costly project delays. RER supports policies like the SPEED Act to build the infrastructure our country needs for long-term economic growth.”
  • Excessive and redundant reviews under NEPA delay energy and housing projects, drive up costs, and stall critical grid upgrades. The bill would reduce duplicative reviews and frivolous lawsuits, harmonize categorical exclusions, and provide certainty for approved projects.
  • Edison Electric Institute (EEI) and a coalition of energy and utility groups also urged Congress to advance the comprehensive permitting reform bill to accelerate infrastructure deployment and strengthen U.S. energy dominance. (Roundtable Weekly, Dec. 5)

State of Play

  • House and Senate leaders were active this week, advancing and negotiating several permitting reform measures as momentum builds around the SPEED Act. (Axios, Dec. 11)
  • This week, Majority Whip Tom Emmer (R-MN) convened industry leaders to discuss how streamlined permitting can support affordability, data center buildout, and rising power demand, as House leaders move a series of related bills forward.
  • On Thursday, the House passed three GOP-led permitting bills to bolster grid reliability and accelerate energy project reviews, underscoring bipartisan interest in reducing regulatory delays amid rising power demand and affordability pressures. (PoliticoPro, Dec. 11)
  • Natural Resources Chair Bruce Westerman (R-AR) is aiming for a strong bipartisan vote to build momentum for Senate action. (UtilityDive, Dec. 10)
  • Senators Mike Lee (R-UT) and Martin Heinrich (D-NM) expressed optimism about ongoing bipartisan Senate negotiations with Environment and Public Works Chair Shelley Moore Capito (R-WV) and Ranking Member Sheldon Whitehouse (D-RI), noting that any deal should make it easier to permit transmission and other major energy infrastructure. (PoliticoPro. Dec. 10)
  • The Trump administration has expressed support for congressional action on permitting reform, but has not taken a position on the SPEED ACT. (PoliticoPro, Dec. 8)

Permitting reform will be a featured topic at RER’s next all-member State of the Industry Meeting on Jan. 21–22, 2026, in Washington, D.C., as policymakers consider strategies to bolster energy infrastructure and support long-term economic growth.

Growing Bipartisan Effort in Congress Targets Barriers to Housing Supply and Affordability

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Housing Hearing

  • The House Financial Services Committee examined regulatory obstacles driving the nation’s housing shortage during a hearing, “Building Capacity: Reducing Government Roadblocks to Housing Supply.”
  • Lawmakers and witnesses focused on zoning limits, lengthy permitting timelines, and other local and federal policies that restrict new construction and inflate costs. (Committee Press Release, Dec. 3)
  • Committee Chair French Hill (R-AR) said during the hearing the committee will assemble a housing and banking package later this month aimed at cutting red tape, strengthening community bank lending to homebuilders, and creating a more predictable development environment for builders, lenders, buyers, and renters. (Politico, Dec. 3)
  • Throughout the hearing, witnesses emphasized the need to cut red tape, streamline local permitting, and address workforce, tariff, and energy-rule cost pressures, while emphasizing the expansion of manufactured housing as a critical supply solution.
  • National Association of Realtors Immediate Past President Kevin Sears testified that zoning prohibitions and regulatory barriers at all levels restrict many communities from allowing diverse housing types. He added that lengthy permitting processes further slow development, and that federal incentives to encourage local governments to streamline approvals would be highly beneficial. (Watch Hearing; Committee Memo)

State of Play

  • The Senate Banking Committee has its own bipartisan housing policy package, the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 (S. 2651), which passed in October as part of its version of the National Defense Authorization Act (NDAA). (Roundtable Weekly, Oct. 17)
  • GOP leaders are now considering whether to add a revised or scaled-down version of the Senate’s legislation to the NDAA, but no final decisions have been made. (PoliticoPro, Dec. 3)
  • Chair Hill cautioned that members have not yet reviewed any legislative text and emphasized that the committee must be fully engaged in negotiations. He said in a statement late Wednesday that “any housing package must have the buy-in” of his committee. (PoliticoPro, Dec. 3)

Senate Housing Legislation

  • This week, Senators John Cornyn (R-TX), Michael Bennet (D-CO), Steve Daines (R-MT), Adam Schiff (D-CA), John Barrasso (R-WY), and Mark Kelly (D-AZ) introduced the More Homes on the Market Act, which would make housing more available and affordable by amending the tax code to allow sellers to exclude additional funds from capital gains taxes, incentivizing homeowners to sell and increasing market supply. (Sen. Cornyn Press Release, Dec. 3)
  • The More Homes on the Market Act would increase the exclusion to $500,000 for single filers and $1 million for joint filers, making it more financially desirable for homeowners to sell and increasing housing turnover.
  • “The American dream is rooted in owning a home and raising a family, but an outdated tax code not only prevents the next generation from being able to afford a home, but it also prevents seniors seeking to downsize from selling theirs,” said Sen. Cornyn. “This legislation would update the tax code to incentivize sellers and make homes more affordable, and I’m glad to support it.”

EB-5 & Workforce

  • Sen. Gallego (D-AZ) introduced the Building Housing for the American Dream Act this week, a bill that would redirect foreign capital from the EB-5 program into affordable housing construction. (Sen. Gallego Press Release, Dec. 4)
  • The bill would extend the lower $800,000 investment threshold to projects dedicated to the production, preservation, or rehabilitation of housing and would expedite processing for applications linked to affordable housing. (Bloomberg, Dec. 4)
  • “Creative policy solutions must be on the table to increase the housing supplies we need to address the national affordability crisis” said Jeffrey D. DeBoer, President and CEO of The Real Estate Roundtable.
  • “Senator Gallego’s Building Housing for the American Dream Act hits the mark. It recognizes that housing should be treated as infrastructure. It will attract overseas investment capital through the EB-5 visa program, helping to build more homes in markets across the country where there are serious housing shortages. It will accomplish these goals at no cost to taxpayers, and create jobs for American workers. This is a smart bill that should be included in long-term EB-5 reauthorization. We thank Senator Gallego for his leadership.”  (Sen. Gallego Press Release, Dec. 4)

RER will continue engaging with policymakers and industry leaders to promote bipartisan solutions and regulatory reforms that expand housing supply, improve affordability, and strengthen economic stability.