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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

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

On Tuesday, the Treasury Department released proposed regulations governing the new limitation on the deductibility of business interest expense, including the exception for real estate businesses.

The Real Estate Roundtable's support for a federal proposal that would implement modified capital rules for High Volatility Commercial Real Estate (HVCRE) loan exposures is detailed in a Nov. 26 comment letterto three banking agencies. The Agencies — tasked with developing a rule consistent with Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) to clarify the capital treatment of HVCRE Acquisition, Development, or Construction (ADC) loans — invited comments on their Notice of Proposed Rulemaking.

The Real Estate Roundtable on Nov. 26 sent recommendations to the U.S. Environmental Protection Agency (EPA) to improve the agency’s ENERGY STAR scoring methods, which rate a building’s energy efficiency performance.

The Supreme Court's recent South Dakota v. Wayfair decision allowing States to collect tax owed on remote internet sales purchases could generate an estimated $250 million in annual revenue for the state of Virginia, which is aiming to start its online sales tax program this summer.

The Treasury Department and Internal Revenue Service are close to issuing draft regulations on the new business interest expense limitation, enacted in last year’s tax overhaul. Regulations related to the Tax Cuts and Jobs Act can be designated for an expedited, 10-day review by the White House Office of Management and Budget before publication and public release, though the timetable can be extended if needed.

This week President Trump and key Democrats have spoken out about the possibility of a "grand bargain" infrastructure deal in the new Congress, if Democrats gain control of the House in the mid-term elections next month.