Real Estate Roundtable (RER) President and CEO Jeffrey D. DeBoer joined General Services (GSA) Administrator Edward C. Forst and JBG SMITH Chairman and CEO Matt Kelly in a Washington Times op-ed this week, urging Congress to address chronic underinvestment in the federal government’s real estate portfolio as the nation approaches its 250th anniversary. (Washington Times, May 13)
Federal Building Backlog
The op-ed warns that the federal government is “depriving one of its largest real estate portfolios of investment,” eroding asset value and driving up long-term costs for taxpayers. (Washington Times, May 13)
The authors note that federally owned buildings are deteriorating because GSA lacks timely access to resources for basic upkeep, even as agencies pay rent into the Federal Buildings Fund. (Washington Times, May 13)
Administrator Forst reinforced that message during a May 13 Senate Appropriations hearing on GSA’s FY2027 budget request, urging Congress to give GSA full annual access to the fund, stop redirecting it to non-GSA programs, and raise the prospectus threshold for routine repairs. (Senate Appropriations Subcommittee Hearing, May 13)
Administrator Forst testified that Congress has diverted $15.6 billion from the Federal Buildings Fund since 2011, while GSA’s repair backlog has increased by 408% to roughly $50 billion, leaving nearly half of its inventory in “fair” or “poor” condition. (Forst Testimony, May 13 | Legis1, May 7)
Why It Matters
The op-ed contrasts private-sector real estate management with a federal process that can take more than 400 days just to approve routine repairs—nearly as long as it took to build the Empire State Building. (Washington Times, May 13)
“Delayed spending is value destruction,” the authors write. “In the federal system, delays are built into the process.” (Washington Times, May 13)
The op-ed urges Congress to align resources, incentives, and execution authority so GSA can preserve asset value, support federal workers, and protect historic public buildings.
Commercial Observer this week released its 2026 “Power 100” list of leading commercial real estate executives, recognizing numerous Real Estate Roundtable (RER) members, board leaders, and RER President and CEO Jeffrey DeBoer among the industry’s most influential voices. (Commercial Observer, May 12)
Power 100 List
Commercial Observer’s annual list highlights the executives and organizations shaping the future of commercial real estate across capital markets, development, housing, office, data centers, and emerging investment trends.
In introducing this year’s list, Commercial Observer noted, “The story of real estate over the last year has been its own crazy quilt. One big strand of the story has been the surge in artificial intelligence, and the incumbent data centers, power sources, and office space necessary to cater to it.” (Commercial Observer, May 12)
Commercial Observerhighlighted DeBoer’s work in Washington to prevent major federal legislation from undermining real estate investment, while also advancing key industry priorities, including extending the Opportunity Zone program through 2032 and increasing state allocations of Low-Income Housing Tax Credits. (DeBoer’s listing)
DeBoer also emphasized the importance of private capital in meeting the nation’s housing needs. “The demand is constantly increasing for housing, so you have to have a dynamic supply chain that meets the demand, and part of that requires capital,” he said. “Where does capital come from if you want to meet that challenge
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.
The Real Estate Roundtable’s Real Estate Capital Policy Advisory Committee (RECPAC) convened this week in New York to discuss market conditions, the evolving political and regulatory landscape, and emerging trends reshaping commercial real estate—including artificial intelligence (AI) infrastructure and the Federal Reserve’s policy trajectory.
Fall RECPAC Meeting
RECPAC met Thursday, under the leadership of RECPAC Co-Chairs Bryan McDonnell (Head of U.S. Debt and Chair of Global Debt, PGIM Real Estate), Rex Rudy (EVP, Head of Commercial Real Estate, US Bank), Miriam Wheeler (Global Head Real Estate Finance, Goldman Sachs Asset Management), and Working Group Chair Eric Wu (Sr. Managing Director, Real Estate, Blackstone) to discuss top policy issues heading into 2026.
RER Chair Kathleen McCarthy (Global Co-Head, Blackstone Real Estate) kicked off the meeting by welcoming RECPAC members and sharing her insights on real estate credit and capital markets. Other discussions included:
Roundtable Senior Vice President Chip Rodgers moderated a fireside chat with Alex Katz (Sr. Managing Director of Government Relations, Blackstone) and discussed the political environment, the recent elections, and issues affecting financial services policy, credit capacity, and capital formation.
Trey Morsbach (JLL Capital Markets) moderated a roundtable discussion with Kwasi Benneh (Morgan Stanley), Dan Mullinger (PNC Real Estate), Joel Traut (KKR), and Michael Lavipour (Affinius Capital) on real estate credit markets, liquidity, pricing, and financing.
Frank Long (Goldman Sachs) hosted a fireside chat with Eric Wu (Blackstone), followed by a discussion with Brian Baker (J.P. Morgan), Quynh Tran (SMBC), and Andrew Winchall (Blackstone Real Estate Debt Strategies) on the economics and energy demands of Artificial Intelligence (AI). AI is reshaping commercial real estate, as the massive energy demands and high costs of data centers redefine investment and financing metrics.
Interest Rates & The Fed
The Bureau of Labor Statistics released its September jobs report this week, but due to the government shutdown, it will not publish October or November payroll data until Dec. 16—a week after the Federal Reserve’s Dec. 9-10 policy meeting. (Axios, Nov. 20)
The absence of timely data is compounding internal divisions, as minutes show policymakers split over further rate cuts amid high inflation and weakening labor indicators. (Axios, Nov. 19)
Richmond Federal Reserve President Thomas Barkin noted the economy is in an “unattractive” balance and said upcoming data will be essential to determining the path forward. (Reuters, Nov. 18)
On Monday, Fed Governor Christopher Waller said a December cut was needed to stem further job-market deterioration. (NBC News, Nov. 20)
Speaking at the Central Bank of Chile Centennial Conference this morning, New York Fed president John Williams said, “I still see room for further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral.” (Axios, Nov. 21)
Roundtable on the Road
RER Senior Vice President & Counsel Ryan McCormick spoke at NYU’s Institute on Federal Taxation in San Francisco this week, outlining key One Big Beautiful Bill (OB3) Act implementation priorities, prospects for future real estate tax legislation, and major litigation and guidance affecting partnerships and real estate transactions.
Also this week, RER President & CEO Jeffrey DeBoer participated in Commercial Property Executive’s 2026 CRE Outlook webinar, highlighting interest rates, energy and housing affordability, immigration reforms, TRIA reauthorization, and capital-access challenges as key issues for the year ahead. He added that, despite uncertainty around tariff policy, “betting against the U.S. is a bad bet.” (Commercial Property Executive, Nov. 19)
Next on RER’s meeting calendar is the all-member State of the Industry (SOI) Meeting, which will include policy advisory committee sessions, on January 21-22, 2026, in Washington, DC.
The federal government reopened late Wednesday after a 43-day shutdown, the longest in U.S. history, as Congress approved a short-term funding bill keeping agencies running through Jan. 30, 2026. (The Hill, Nov. 13)
State of Play
The Senate approved the bipartisan package Monday night in a 60–40 vote, with seven Democrats and Angus King (I-ME) joining Republicans to advance the deal. Sen. Rand Paul (R-KY) was the only Republican “no” vote. (Punchbowl News, Nov. 12)
The House passed the measure on a 222–209 vote, with six Democrats joining all but two Republicans, on Wednesday night. President Trump signed the bill hours later, ending weeks of halted federal services, frozen benefits, and widespread economic disruptions. (Washington Post, Nov. 12)
“This is no way to run a country,” Trump said while signing the bill that ended the shutdown. “I hope we can all agree the government should never be shut down again.” (Roll Call, Nov. 12)
The agreement includes full-year FY2026 appropriations for Agriculture, Veterans Affairs, and the Legislative Branch, while extending funding for all other agencies for 11 additional weeks. The deal reverses thousands of federal layoffs proposed during the shutdown and guarantees back pay for more than 1.25 million furloughed or unpaid federal employees. (Punchbowl News, Nov. 13)
In exchange, Senate Majority Leader John Thune (R-SD) guaranteed Senate Democrats a mid-December vote on extending the Affordable Care Act’s enhanced tax credits. Extending the health insurance subsidies was the Democrats’ primary demand during the shutdown. Speaker Mike Johnson (R-LA) made no promise for a similar vote in the House. (Politico, Nov. 12)
What’s Restored: NFIP, HUD Programs, Federal Services
National Flood Insurance Program (NFIP): The NFIP, which lapsed during the shutdown, has been temporarily reauthorized through Jan. 30. New policies can now be issued and existing policies renewed, removing a major barrier for commercial and residential transactions. This is the program’s 34th short-term extension since 2017 as lawmakers continue pursuing a long-term fix.
Section 8 & HUD Rental Assistance: HUD is authorized to repurpose carryover funds within the Housing Choice Voucher Program to ensure the full renewal of existing rental assistance at current fair market rents through Jan. 30. This measure prevents disruptions for property owners and the millions of low-income households relying on stable voucher support. (PoliticoPro, Nov. 11)
Other Federal Operations: SNAP benefits for 42 million Americans will resume in full, while air traffic control, TSA operations, farm loan processing, and other federal services return to normal as national parks and benefits offices reopen. The agreement also halts proposed federal layoffs through the end of January.
“Reopening the government is a welcome and necessary step that restores stability to federal operations, housing programs, and the broader economy,” said Jeffrey DeBoer, President and CEO of The Real Estate Roundtable. “It also restores the federal economic data that lenders and investors rely on to plan and facilitate transactions.”
Major hurdles remain, including the lack of an agreed-upon topline spending level, the Senate’s push to advance a five-bill package that includes Transportation-HUD, and the House’s need to accelerate committee work after weeks of inactivity.
FY2026 funding bills for Energy, EPA, Homeland Security, State, and Treasury/IRS still require difficult bipartisan negotiations.
Another shutdown is possible if Congress fails to meet the Jan. 30 deadline.
Blackstone announced this week that Kathleen McCarthy, global co-head of Blackstone Real Estate, will step down from the firm at the end of the year after an impactful 15-year tenure. As Chair of The Real Estate Roundtable (RER), she will continue to lead the organization’s policy agenda, member engagement and industry outreach. (Bloomberg | CoStar, Nov. 11)
McCarthy said: “It is a privilege to serve as chair of The Real Estate Roundtable and work positively alongside industry leaders I deeply respect. I look forward to continuing to do so as the next chapter in my professional career evolves.”
Jeffrey DeBoer, RER President and CEO, stated, “Kathleen’s leadership of The Roundtable will continue to strengthen our advocacy program, enhance service to our membership, and deliver positive national policy results for the industry.”
Next on RER’s meeting calendar is the all-member State of the Industry (SOI) Meeting, which will include policy advisory committee sessions, on January 21–22, 2026, in Washington, DC.
On Wednesday, the Federal Reserve reduced its benchmark interest rate by 25 basis points, marking the first rate cut since December 2024. Central bank officials also projected two additional rate reductions this year, citing growing concerns about labor market softening and economic headwinds.
Fed’s Decision
The Fed’s move brings its target federal funds rate to a range of 4 percent to 4.25 percent, aligning with expectations on Wall Street. (CNBC, Sept. 17)
Fed Chair Jerome Powell emphasized that while inflation remains above the 2 percent target, rising signs of labor market weakness justify a more accommodative stance.
Governor Stephen Miran, confirmed to the Fed Board on Monday, cast the lone dissent in favor of a steeper half-point cut.
The central bank’s latest projections signal two more rate cuts before year-end, though the “dot plot” of officials’ individual expectations varied considerably.
Housing Impact
Mortgage rates have responded quickly to the Fed’s decision, falling to 6.17 percent as of Thursday—the lowest level in nearly a year. (Fortune, Sept. 18)
However, mortgage rates remain elevated compared to pre-pandemic levels, leaving many prospective homebuyers priced out. Home values remain roughly 50 percent higher than at the start of the decade. (AP News, Sept. 18)
Chair Powell acknowledged that monetary policy alone cannot solve the nation’s housing affordability crisis. “There’s a deeper problem here, that’s not a cyclical problem that the Fed can address, and that is just a pretty much nationwide housing shortage,” he said. (CNN, Sept. 17)
The Real Estate Roundtable (RER) continues to advocate for bipartisan solutions that increase housing supply and reduce regulatory barriers to new development, such as the Road to Housing Act (S. 2651) and the Revitalizing Downtowns and Main Streets Act (H.R. 2410).
Implications for CRE
(L-R): Jef Conn, Jeffrey DeBoer, and Shannon McGahn
The Fed’s rate cut comes soon after the release of RER’s Q3 2025 Sentiment Index, which reflected cautious optimism among CRE executives. The Index rose 13 points from last quarter to a score of 67, as signs of stabilization and sector-specific growth have started to emerge. (Roundtable Weekly, Sept. 5)
Interest rate cuts could provide a modest tailwind for CRE markets, although some property types remain under pressure.
Further reductions in borrowing costs into 2026 could support more robust valuations and transaction activity. (Multifamily Dive, Sept. 17)
At the 2025 C5 + CCIM Global Summit in Chicago this week, RER President & CEO Jeffrey DeBoer joined Shannon McGahn (Executive Vice President and Chief Advocacy Officer, National Association of REALTORS®) and Jef Conn (Industrial & Office Specialist, Coldwell Banker Commercial Capital Advisors) on a panel to discuss the bipartisan nature of the nation’s affordable housing crisis.
DeBoer emphasized the need for a construction visa program to expand the labor force and build more supply, along with policies such as YIMBY legislation, property conversion incentives, and permitting reforms to help address the crisis.
The Fed’s next rate decision is scheduled for Oct. 29, with the final FOMC meeting of the year set in early December.
(L-R): Hessam Nadji (Marcus & Millichap), Barry Altshuler (Equity Residential), Tom Bannon (California Apartment Association), Jeffrey DeBoer (Real Estate Roundtable), Daniel Ceniceros (Connect Media)
At Connect Apartments 2025 in Los Angeles this week, Real Estate Roundtable (RER) President and CEO Jeffrey DeBoer delivered the keynote Q&A session, outlining top legislative and regulatory priorities in the coming months.
Remarks
His remarks covered implementation of new tax rules on bonus depreciation and expensing, expansion of the Low-Income Housing Tax Credit, policies to encourage new housing supply, efforts to enhance energy grid access, and preparation for the scheduled 2027 expiration of the Terrorism Risk Insurance Act (TRIA).
Recognizing that his remarks came on Sept. 11, DeBoer emphasized the broader role of industry leaders in fostering collective action.
“For the past 24 years, our industry and its leaders have supported individual, business, and policy actions to respond to and prevent terrorism. Today we face a new reality that also requires a collective response,”he said.
He continued, “Our personal, social, and political discourse clearly has spiraled in a very dangerous direction. Many are now calling on political leaders to tone down their divisive rhetoric. We agree. But we also strongly believe that political leaders should not act alone. The Real Estate Roundtable, and our leaders, now urge that the millions of people in our industry work to find boundaries to inciteful rhetoric by rejecting actions and language that vilify and denigrate those whose views differ from our own.”
Congress returned from recess this week with housing affordability at the forefront, as lawmakers, industry leaders, and advocates launched new legislation, coalition efforts, and regulatory proposals aimed at expanding supply and lowering barriers to residential development.
Summit on Housing Affordability
The National Summit on the Housing Affordability Crisis convened Sept. 3 on Capitol Hill and featured House Democratic Leader Hakeem Jeffries (D-NY), Sen. Ruben Gallego (D-AZ), and other lawmakers calling for bold action to expand and improve the affordability of housing nationwide. Rep. Jimmy Gomez (D-CA) hosted the summit. (Watch Panel)
RER President & CEO Jeffrey DeBoer joined Rep. Gomez, Emily Cadik (Affordable Housing Tax Credit Coalition), and Will Fischer (Center on Budget and Policy Priorities) on the summit’s opening panel “Making the Housing Puzzle Work.” (Watch DeBoer’s Remarks, Sept. 3)
DeBoer commented, “Housing affordability is at its core a supply problem—and supply is constrained by costs, labor, and capital. We need policies that continue to expand the Low-Income Housing Tax Credit, advance the bipartisan Revitalizing Downtowns and Main Streets Act to encourage the conversion of obsolete buildings, and ensure we have the skilled workforce to build. That’s why it’s so important to bring together lawmakers and stakeholders from every sector, because housing is an essential facet of American life, and solving this crisis requires public and private partners working together to expand supply, modernize rules, and deliver homes—both owned and rental single-family and multifamily—that meet the needs of Americans.”
Rep. Gomez highlighted the RER-backedRevitalizing Downtowns and Main Streets Act, which would create a federal tax credit to convert underutilized and obsolete commercial properties into affordable housing.
Rep. Gomez framed the affordability crisis as a test of confidence in U.S. institutions, saying America “needs a housing boom” prioritizing fairness and accessibility. (Rep. Gomez Press Release, Sept. 4)
Bipartisan Housing Legislation
On Sept. 2, RER joined more than 20 real estate and housing groups in a Housing Affordability Coalition letter to Congress urging action on several bipartisan bills, including the HOME Investment Partnerships Reauthorization and Improvement Act, the Workforce Housing Tax Credit Act, and more. (Letter, Sept. 2)
The letter emphasized that housing affordability requires public–private partnerships and the removal of regulatory barriers.
Rep. Mike Flood (R-NE), chair of the Housing and Insurance Subcommittee, said he aims for an October markup of a bipartisan HOME program reauthorization with Ranking Member Emanuel Cleaver (D-MO). (PoliticoPro, Sept. 3)
Their plan would expand uses of HOME funds, reduce regulatory burdens associated with Davis-Bacon, NEPA, and Buy America compliance, and speed affordable housing development.
The House agenda complements the Senate’s ROAD to Housing Act, advanced in July, and includes veteran housing and land-use reform bills. (Roundtable Weekly, Aug. 1)
Earlier this week, Treasury Secretary Scott Bessent said the Trump administration is weighing whether to declare a national housing emergency this fall, citing zoning and building codes as barriers to new supply. (Bloomberg, Sept. 1)
Coalition Seeks Flexibility on Davis-Bacon
On Sept. 3, RER and a group of multifamily trade associations sent a comment letter to HUD Secretary Scott Turner urging the use of Project Labor Agreements (PLAs) to determine prevailing wages on HUD projects. (Letter, Sept. 3)
The letter states that PLAs would provide more accurate, local, and timely wage determinations than the Department of Labor’s (DOL) survey method, which often delays projects and raises costs.
In May, RER joined a coalition of 15 national real estate organizations urging the DOL to repeal and revise its 2023 Davis-Bacon rule. (Letter, May 20 | Roundtable Weekly, May 23)
The coalition said voluntary PLAs could reduce administrative burdens, speed delivery of HUD-backed housing, and serve as a test case for future Davis-Bacon reforms.
What’s Next
With Congress back in session, housing advocates are pressing for quick action on bipartisan bills and regulatory reforms. RER will continue to push for policies that expand supply, modernize outdated rules, and foster partnerships to address the nation’s affordability crisis.
After months of high-stakes negotiations, Congress this week passed the sweeping One Big Beautiful Bill Act, a comprehensive reconciliation package that overhauls tax policy, restructures federal spending, and advances numerous Real Estate Roundtable (RER) priorities as it heads to President Trump’s desk for signature. (Roll Call, July 3)
State of Play
The House passed the final version of the One Big Beautiful Bill Act this afternoon, following a narrow vote of 218–214, capping off weeks of negotiations and delivering a legislative victory to Republican leaders ahead of the July 4 deadline. In the end, two Republicans—Reps. Thomas Massie (R-KY) and Brian Fitzpatrick (R-PA)—joined all Democrats in opposing the bill. (The Hill, July 3)
“With one big, beautiful bill, we are gonna make this country stronger, safer, and more prosperous than ever before, and every American is going to benefit from that,” said House Speaker Mike Johnson (R-LA). “Today we are laying a key cornerstone of America’s new golden age.” (Politico, July 3)
The Senate passed the sweeping budget bill in a 51-50 vote on Tuesday, after almost 24 hours of debate, amendments, and a “vote-a-rama” that ended with Vice President JD Vance casting the tiebreaking vote in favor of passage. Three GOP senators—Rand Paul (R-KY), Thom Tillis (R-NC), and Susan Collins (R-ME) voted no. (Axios, July 2)
In an interview after the bill’s Senate passage, Senate Majority Leader John Thune (R-SD) acknowledged that the decision to make the measure’s business tax cuts permanent impacted its savings and overall strategy. “We really believed that permanence was the key to economic growth because it creates certainty,” he said. “All the models that we saw showed that you got more growth with permanence.” (PoliticoPro, July 1)
Roundtable Advocacy
The final legislation advances a broad array of policies that support capital formation, real estate investment, and housing development, while repealing harmful proposals like Section 899 and preserving longstanding tax rules vital to CRE.
“This legislation represents a meaningful step toward strengthening communities, expanding housing opportunities, and supporting long-term economic growth,” said Jeffrey DeBoer, President and CEO of RER. “By advancing policies that encourage investment and preserve small business tax parity, Congress is helping to revitalize neighborhoods, create jobs, and ensure all Americans benefit from a stronger built environment.
DeBoer added, “We are, of course, disappointed that the overall bill is predicted to increase the deficit and national long-term debt. However, we hope that the pro-growth aspects of the bill will narrow both by significantly growing the economy and providing revenues greater than those now projected. Likewise, we are concerned with predictions by some regarding the impact of spending cuts on research and needed health care for Americans.”
RER’s advocacy efforts were particularly successful in eliminating several provisions that would have severely impacted CRE, including Section 899, known as the “revenge tax,” and harmful limitations on state and local tax deductions for pass-through businesses.
Speaking to Bisnow regarding the impact of the tax provisions on real estate, Ryan McCormick, RER’s SVP and Counsel, said, “From the bill’s investment in housing and low-income communities to its fair treatment of entrepreneurial and pass-through businesses, the legislation strikes the right balance … it should spur job-creating capital investments in commercial properties across the nation.” (BisNow, July 1)
Tax Policy
The final legislation includes several tax provisions that will provide significant benefits to commercial real estate and support long-term economic growth:
Permanent Business Tax Cuts: The bill makes permanent several business tax deductions from the 2017 Tax Cuts and Jobs Act (TCJA), including the Section 199A deduction for pass-through businesses and interest deductibility rules under Section 163(j).
Section 899: Late last week, lawmakers removed the Section 899 provision known as the “revenge tax” from the bill after the Treasury Department secured an international tax agreement with G7 countries. RER strongly advocated for changes to the measure, warning that the tax would have deterred foreign investment in U.S. commercial real estate and weakened capital formation. (Roundtable Weekly, June 27) (BisNow, July 1) (Commercial Property Executive, July 1)
Opportunity Zones: OZs are now a permanent feature of the tax code, though deferral periods for eligible gains are shortened through the end of 2026—a technical issue that RER will continue to address in discussions with Congress and Treasury.
Low-Income Housing Tax Credit (LIHTC): The bill preserves and enhances the LIHTC program, supporting the construction of affordable housing nationwide.
Bonus depreciation & expensing: Full expensing and 100% bonus depreciation for qualifying property are restored and made permanent, providing significant cash flow benefits for property owners undertaking capital improvements.
SALT workarounds preserved: The final bill drops proposed changes to state and local tax deductibility on pass-through business income, preserving current law that allows deductibility through state pass-through entity tax regimes.
Condominium construction tax accounting: The legislation includes provisions the RER has advocated for since 2015, allowing condo developers to use the completed contract method of accounting, aligning tax liability with actual receipts.
Excess business losses: The revised Senate bill avoids a controversial proposal from earlier drafts that would have permanently siloed active pass-through business losses, instead opting to extend current law under Section 461(l) without restricting taxpayers from using those losses against wages and investment income. This approach preserves flexibility for entrepreneurs, start-ups, and two-earner households and avoids undermining the principle of measuring true net income.
Energy Tax Credits
For months, clean energy tax incentives enacted under the Inflation Reduction Act (IRA) have been a point of contention in both the House and Senate, with several Republican lawmakers urging leadership to take a more targeted approach to scaling back the IRA’s provisions—while maintaining incentives that support both traditional and renewable energy sectors. (RW, April 25) (CBS News, July 1)
Ultimately, the final legislation significantly scales back the IRA’s clean energy tax incentives by accelerating the phase-out of wind and solar credits, while dropping a controversial excise tax on projects using foreign components and preserving eligibility for already planned or approved developments that begin construction before mid-2026. (PoliticoPro, July 1) (Bloomberg, July 1)
The Section 48E Investment Tax Credit (ITC)for wind and solar projects remains in the tax code, but projects that begin construction 12 months after the bill’s enactment must be placed in service by the end of 2027.
The Section 179D deduction for energy-efficient commercial building construction and retrofits is now limited to projects that begin construction by June 30, 2026.
Similarly, the 45L tax credit for energy-efficient new residential construction expires for homes “acquired” after June 30, 2026.
Importantly, ENERGY STAR’s current budget for FY2025 was not affected by any of the funding rescissions in the final bill.
At this week’s BOMA International Conference, RER’s SVP and Counsel Duane Desiderio joined John Boling (VP, Advocacy & Building Codes, BOMA International) for a panel discussion on ENERGY STAR Portfolio Manager, highlighting the program’s legal foundation, bipartisan economic appeal, and importance to real estate stakeholders. (Commercial Property Executive, July 2)
RER will continue engaging with lawmakers through the annual appropriations process to ensure that FY2026 federal funding bills (for spending starting October 1) support ENERGY STAR. (Commercial Property Executive, July 2)
What’s Next
With the One Big Beautiful Bill Act heading to the president’s desk, attention now turns to the appropriations process and additional reconciliation opportunities.
Speaker Mike Johnson has expressed interest in pursuing additional budget reconciliation efforts, a process that Congress can undertake at the end of the fiscal year.
In an interview on Fox News Tuesday, Johnson said, “This is just a step in a sequence of events. We’re intending to do more reconciliation work. The plan is to do one in the fall for FY26 budget year and we can also squeeze in a third one for FY27 before this Congress is up.” (Politico, July 2) (Punchbowl News, July 2)
RER will continue to provide in-depth analysis in the coming days and weeks on the reconciliation bill’s implications for commercial real estate, including technical implementation, market impacts, and policy recommendations.
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