
Section 899
- In a Sept. 9 meeting, Treasury Assistant Secretary for Tax Policy Ken Kies told House Republicans that the department would support reviving Section 899 if Europe fails to exempt U.S. companies from the global minimum tax. (Bloomberg Law, Sept. 10)
- The measure was originally dropped from the reconciliation bill after the G7 pledged to exempt the U.S. from the Organization for Economic Co-operation and Development (OECD) Pillar Two taxes. (Reuters, June 30)
- Section 899 would impose escalating penalties on companies and individuals from jurisdictions applying “unfair” foreign taxes.
- Senate Finance Chair Mike Crapo (R-ID) and House Ways and Means Chair Jason Smith (R-MO) said they are prepared to reconsider the proposal if needed. (PoliticoPro, Sept. 9)

- “We will absolutely pass that bill” if European finance ministers don’t honor the U.S.’s international tax structure, Chairman Smith said Tuesday. He added that such legislation could be included in a second budget reconciliation bill. (Bloomberg Law, Sept. 10)
- The Real Estate Roundtable (RER) supports modifications to the proposed Section 899 measure that would exempt passive, noncontrolling, minority investment in U.S. real estate in order to protect an important source of financing and capital.
- If revived without changes that exempt passive investment in US businesses and assets, Section 899 could negatively impact U.S. commercial real estate by applying to sovereign wealth funds, foreign insurers, and other noncontrolling, minority investors — key sources of equity for large-scale projects (Roundtable Weekly, June 27)
- During negotiations for the OB3 Act, RER and other industry groups warned that the tax would deter foreign investment, weaken capital formation, increase borrowing costs, and dampen property values. (Roundtable Weekly, June 6)
- A tentative G7 understanding must still gain acceptance among 140 OECD participants, many of whom are reluctant to grant the U.S. special treatment. Meanwhile, the White House and House Republicans are targeting OECD funding through rescissions and appropriations. (PoliticoPro, Sept. 10)
Energy Tax Incentives
- Kies also briefed lawmakers on Treasury’s plans to implement provisions of the OB3 Act and fielded questions about recent guidance narrowing eligibility for certain wind and solar projects. (PoliticoPro, Sept. 9)
- To address ongoing questions about the OB3 Act’s impact, RER developed a fact sheet, “Clean Energy Tax Incentives and the One Big Beautiful (OB3) Act – What CRE Should Know”, detailing how the law treats energy investments relevant to real estate. (RER Fact Sheet, Aug. 27 | Roundtable Weekly, Sept. 5)
Government Funding
- The government runs out of money on Sept. 30, and Republican leaders are split on how long to extend current funding. (The Hill, Sept. 9)
- GOP fiscal hawks and the White House want a stopgap bill through January or beyond to press spending rescissions and partisan reconciliation measures. (Punchbowl News, Sept. 10)
- Top appropriators in the House and Senate are nearing a deal on a package of three funding bills paired with a stopgap measure to avert a shutdown, extending government funding until Nov. 20. The House could take it up as soon as next week. (Punchbowl News, Sept. 12)
Speaker Mike Johnson (R-LA) faces pressure from President Trump and OMB Director Russ Vought to back a longer-term plan, while Senate Republicans such as Majority Leader John Thune (R-SD) are urging a cleaner, narrower resolution to avoid a shutdown fight.