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Vice President Mike Pence and Sen. Tim Scott (R-SC) promoted the new Opportunity Zones (OZ) program in South Carolina yesterday as an example of how economically distressed areas can be redeveloped to benefit lower-income communities.

The Real Estate Roundtable's 2019 Q1 Sentiment Index released today reveals confidence from commercial real estate industry executives that today's fundamentally sound CRE markets will prove resilient when the decade-long expansion of the U.S. economy inevitably slows down.

An IRS hearing this week focused on how Opportunity Zone regulatory guidance may affect long-term investments in certain low-income communities. The hearing, originally scheduled for Jan. 10, was rescheduled due to the government shutdown in December.

The federal government this week resumed full-time operations after a 35-day partial shutdown. A three-week bill signed by President Trump last Saturday now funds approximately 25% of the government – including the Department of Homeland Security (DHS), Treasury and the Internal Revenue Service (IRS) – until Feb. 15. If a new funding measure is not passed, the government will face another partial shutdown.

Senate Banking Committee Chairman Mike Crapo (R-ID) on Feb. 1 released an outline for reforming the nation's housing finance system, including the Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac

The Treasury Department on Jan. 18 issued final regulations and new guidance on the 20 percent deduction for qualified pass-through business income (under Internal Revenue Code section 199A).

Treasury Releases Highly Anticipated Final Regulations on New Pass-Through Deduction

President Trump today announced an agreement with congressional Democrats to reopen the federal government for three weeks—under the condition that negotiations proceed over border security, including his demand for a wall on the Mexican border.

President Trump, Congress Agree to 3-Week Shutdown Reprieve As Negotiations Proceed Over Border Security

Congressional Lame Duck Session Could Consider Condominium Tax Accounting and Other Real Estate Tax Policy Issues

Guidance on Business Interest Deduction Limit May Address Real Estate Investment Issues

The government shutdown is slowing progress on tax guidance important to real estate, including Opportunity Zone incentives. The IRS cancelled a Jan. 10 administrative hearing on the October proposed regulations. However, under a special two-year IRS appropriation for tax reform implementation, and the agency’s own contingency plan, background work continues on Opportunity Zone rules and other critical regulatory guidance.”

House Congressional Committees Move Forward on Policy Agendas, Add New Members

Unless an agreement with Congress is reached soon, President Trump this week indicated he is considering declaring a national emergency in order to fund the construction of a border wall on the southern border. A national emergency declaration would face significant legislative and legal opposition, yet it could create a path to end the partial government shutdown that tomorrow will become the longest in U.S history, exceeding the 21-day shutdown of 1995-96.

Outgoing House Ways and Means Chairman Kevin Brady (R-TX) released a draft bill on Jan. 2 that includes tax technical corrections to previously enacted legislation, including the Tax Cuts and Jobs Act (TCJA) overhaul.

Roundtable Comment Letter Recommends Additional Guidance from Treasury and IRS to Accelerate Capital Investment in Opportunity Zones

This week the Real Estate Roundtable provided formal comments regarding opportunity zones to the Treasury Department and the IRS. The letter encourages Treasury to clarify a number of tax issues that would remove uncertainty for potential investors and opportunity fund managers. This is the second Roundtable comment letter on opportunity zones, following Treasury’s publication of proposed regulations in October.

President Trump on Dec. 12 signed an Executive Order that seeks to facilitate long-term equity investment in new Opportunity Zones and other low-income communities. The order formally established the White House Opportunity and Revitalization Council.

Trump 2016 Campaign Advisor: Foreign Tourism Supports U.S. Economic Growth, Job Creation and Reduces Trade Deficit