Repeal the Foreign Investment in Real Property Tax Act (FIRPTA)
Repeal the Foreign Investment in Real Property Tax Act (FIRPTA) to unlock private capital to help finance infrastructure assets. FIRPTA imposes a discriminatory layer of capital gains tax on foreign investment, which does not apply to any other asset class. The Roundtable supports bipartisan FIRPTA repeal legislation (H.R. 2210) as a market-driven catalyst to finance improvements in our nation’s infrastructure.
Beneficial Depreciation Rules for Building Infrastructure
Provide building owners with beneficial depreciation rules for energy efficiency investments and help address climate change.
The Roundtable’s recommendation of 10-year cost recovery for a new tax code category of high performance energy efficiency equipment would spur retrofit innovations in commercial and multifamily building infrastructure. More detail is provided in the “Energy” section of this report.
Streamline the Permitting Process
Streamline the permitting process.
A report by the nonprofit organization Common Good estimates that a six-year delay in starting construction on public projects costs the nation more than $3.7 trillion. Permit delays dampen private sector investment and add to the overall costs of infrastructure projects.
Congress should codify approval streamlining procedures supported by both Republican and Democratic administrations. For example, Trump Administration executive measures to establish discipline should be legislative goals. These include a two-year goal to complete all environmental reviews for major infrastructure projects, with interim benchmarks; increased coordination between federal agencies at key points in the permitting process; and increased emphasis on project “pre-scoping” and “preliminary planning.”
"Pay at the Pump" Gas User Fee
Responsibly increase the “Pay at the Pump” gas user fee.
The biggest federal funding source for surface transportation is the Highway Trust Fund (HTF), capitalized by the “pay at the pump” gas user fee, which has not been raised since 1993. The fund is perpetually on the brink of insolvency and frequently bailed out by Congress. The Roundtable supports proposals from the U.S. Chamber of Commerce and other groups to sustain the HTF by increasing the federal fuel user fee by five cents a year for the next five years, and indexing it to inflation thereafter.
IRS limitations on private-activity bonds (PABs)
Revising IRS “volume caps” and other limitations on private-activity bonds (PABs).
Tax-exempt PABs are proven tools to mobilize public and private co-investment in infrastructure. The Roundtable supports broadening their availability by raising volume caps on the capacity of states to issues PABs, expanding the scope of projects eligible for PAB financing, and giving states flexibility to choose which kinds of projects are in most need of tax-exempt bond assistance. Pending bipartisan measures such as the Move America Act (H.R. 1508), the Public Buildings Renewal Act (H.R. 1251), and the BUILD Act (S. 352) seek to accomplish these goals.
Public-Private Partnerships (P3s) - TIFIA
Encourage Public-Private Partnerships (P3s) by Improving the Transportation Infrastructure Finance Innovation Act (TIFIA) loan program.
Policies that encourage appropriate public-private partnerships (P3s) can unleash private equity investments, improve budget certainty, accelerate project delivery, and achieve greater efficiencies and innovations in project design and construction.
TIFIA’s low federal interest rates and flexible repayment terms have unlocked private investment capital to finance major projects across the country. However, the review process to obtain TIFIA support can be unduly arduous and lengthy. The Roundtable supports the RAPID Act (S.353), which would enhance the program’s efficiency while safeguarding taxpayers’ investments.
Mass Transit Grant Programs
Support mass transit grant programs.
Infrastructure legislation must reflect demographic preferences for mass transit, as Millennials dominate the workforce and Baby Boomers retire from it. US-DOT Capital Improvement Grant (CIG) dollars must be maintained, with reasonable federal-state cost-share rules, to help finance mass transit programs of regional and national significance (like the New York-New Jersey Gateway program).
September 19, 2017
Real Estate Roundtable Testifies Before Senate on Business Tax Reform
April 29, 2019
Infrastructure Policy Recommendations