Tag: Senator Ron Wyden

Energy Policy Update: Permitting Reform, Data Center Growth and Tax Proposals

Posted on by abigail_grenadier

A bipartisan group of former senior administration officials is urging Congress to advance permitting reform legislation, citing growing energy demand, infrastructure delays, and threats to U.S. economic competitiveness. The push comes as new research highlights the economic impact of data center development and Senate Democrats introduce proposals to reshape federal energy and data center tax incentives. (The Hill | Axios, Oct. 21)

Permitting Reform

  • Nineteen former economic and national security officials from five presidential administrations urged congressional leaders to pass bipartisan permitting reform legislation, warning that lengthy approval processes are hindering infrastructure development, economic growth, and national security. (The Hill, Oct. 21)
  • Signatories included former Treasury Secretaries Janet Yellen, Steven Mnuchin, Timothy Geithner, Henry Paulson Jr. and Robert Rubin, along with former Secretary of State Mike Pompeo and seven former chairs of the Council of Economic Advisers.
  • The officials endorsed the bipartisan American Affordability and Jobs Act, introduced Sept. 30 by Sens. Shelley Moore Capito (R-WV), Mike Lee (R-UT), Martin Heinrich (D-NM) and Sheldon Whitehouse (D-RI), which would reform federal environmental review and permitting processes. (Roundtable Weekly, Oct. 2)
  • The officials warned that permitting delays are particularly concerning as artificial intelligence and data center development drive electricity demand. Faster infrastructure approvals could expand electricity supply, reduce reliance on costly on-site generation and help lower consumer energy costs.

RER Advocacy

  • The Real Estate Roundtable (RER) has consistently supported bipartisan permitting reform to strengthen grid reliability, lower energy costs, and accelerate infrastructure investment.
  • In a December 2025 letter to congressional leadership, RER urged passage of the bipartisan SPEED Act (H.R. 4776), emphasizing that duplicative federal reviews delay the delivery of affordable, reliable electricity to homes and commercial buildings. (RER Letter, Dec. 8 | Roundtable Weekly, Dec. 12)

Data Center Economic Impact

  • A new U.S. Chamber of Commerce study found that data centers generate substantial economic activity, employment, and local tax revenue, underscoring their role in supporting communities and infrastructure investment. (U.S. Chamber of Commerce, Oct. 15)
  • By the Numbers: According to the Chamber’s analysis, economic impacts generated by a typical 50-megawatt data center include:
  • 5,200 jobs annually supported statewide during a two-year construction phase, generating approximately $680 million in economic activity.
  • $114 million in local tax revenue projected over five years in Prince William County, Virginia, with similar benefits estimated for communities in Texas, Georgia, and Ohio.
  • The findings come as lawmakers debate how to accommodate growing data center electricity demand while protecting consumers from higher infrastructure costs.
  • RER has also urged the North American Electric Reliability Corporation (NERC) to develop clear, workable grid reliability standards that reflect the distinct responsibilities of data center owners, operators, and tenants. (Roundtable Weekly, Sept. 18)
  • Meanwhile, congressional Democrats plan to ramp up oversight of the Trump Administration’s efforts to avoid federal environmental standards for data centers if they take control of the House and/or Senate after the midterms. (PoliticoPro, Oct. 22)

Data Center Tax Proposals

Sen. Ron Wyden (D-OR)
  • Senate Finance Committee Ranking Member Ron Wyden (D-OR) released draft legislation Friday that would impose an excise tax on data center operators and eliminate several federal tax incentives for data center investment, including bonus depreciation, Opportunity Zone benefits and research and development tax credits. (Press Release | Senate Finance Committee Summary | Draft Legislation, Oct. 23)
  • The proposal builds on Wyden’s August white paper, which also called for restrictions on certain data center investments through real estate investment trusts (REITs). (Roundtable Weekly, Aug. 7)
  • The proposed changes would create tax penalties specifically targeting data centers by excluding them from longstanding incentives available to other capital investments. (Roundtable Weekly, Aug. 7)

Clean Energy Tax Incentives

  • Sen. Wyden (D-OR) also outlined plans to restore wind and solar tax credits and expand the Inflation Reduction Act’s Direct Pay Program if Democrats regain control of the Senate. (Politico, Oct. 22)
  • A new Senate Finance Committee Democratic staff report found that nearly $2.5 billion in direct payments went to tax-exempt entities during the program’s first two years, supporting renewable energy and other clean energy investments. (Sen. Wyden Press Release, Oct. 22)

The November elections will shape prospects for permitting reform, data center regulation and federal energy tax policy, with several proposals potentially returning to the agenda during the lame-duck session or the next Congress.

Sen. Wyden Introduces New Tax Bills Targeting Partnerships Tax Rules

Posted on by abigail_grenadier

Senate Finance Committee Ranking Member Ron Wyden (D-OR) introduced two bills aimed at overhauling the taxation of partnerships this week, reviving a longstanding effort with major implications for commercial real estate.

Why It Matters

  • Although the legislation faces little chance of advancing this Congress, it signals Democratic priorities for any future tax package, particularly if control of Congress shifts after the 2026 elections.
  • According to Sen. Wyden’s press release, partnerships are “a preferred tax avoidance strategy for wealthy investors and mega-corporations.” He continues, “you can bet we’ll have this on the shelf when it comes time for Democrats to pass an agenda that cleans up the harm Trump is doing to American families.” (Sen. Wyden Press Release, June 17)
  • The PARTNERSHIPS Act is an updated version of Sen. Wyden’s 2021 partnership reform discussion draft. While he has not shared the JCT revenue table, his press release states that the proposals would raise $727 billion over 10 years.

  • The legislation would make fundamental changes to how debt, gains, and deductions are allocated among partners—departing from established practices that reflect real estate economics and contractual obligations.

Bill’s Key Provisions 

  • Partnership debt: The PARTNERSHIPS Act would rewrite Section 752 rules to require all partnership debt be allocated according to profit shares, disregarding real estate partners’ actual economic risk, contractual guarantees, and repayment obligations. This could significantly alter basis allocation and impact deductions, losses, and gains—though a six-year transition period would apply.

  • Allocation of partnership items: One of the major reforms proposed in the prior discussion draft was eliminating the “substantial economic effect (SEE)” safe harbor for allocating partnership items among the partners. The PARTNERSHIPS Act preserves the SEE rules while creating a specific rule for certain related-party partnerships. Under the Act, these partnerships would be required to allocate items consistent with contributed capital.

  • Allocation of built-in gains with respect to contributed property: The bill would eliminate two of the three options available to partnerships for allocating built-in gain among the partners when property is contributed to a partnership.
  • Net investment income tax: Mirroring the Biden budget, the bill would expand the 3.8% net investment income tax to include active pass-through business income not currently covered.

Roundtable Advocacy

  • RER has consistently advocated for fair treatment of partnerships—emphasizing their vital role in driving investment, job creation, and entrepreneurial risk-taking. As nearly half of all U.S. partnerships are in real estate, RER continues to urge Congress to strengthen, not undermine, the long-standing tax rules that support pass-through businesses and economic development.
  • RER, along with 23 national real estate organizations, previously led a comment letter on Sen. Wyden’s proposal in 2021, and will continue to advocate against provisions that mischaracterize partnerships as “tax scams.” (Letter, Sept. 2021 | RW, Sept. 2021)

  • Earlier this year, RER commissioned a comprehensive study by professors at Syracuse University and USC to analyze and address the important role of partnerships in the U.S. economy. 

RER’s Tax Policy Advisory Committee (TPAC) is reviewing how this research can further counter misleading narratives as tax policy discussions evolve.

Congressional Tax Package and Supreme Court Case Focal Points at Roundtable Meeting

Posted on by Trey Jackson

Tax policy issues impacting commercial real estate were front and center during This Roundtable’s Jan. 23 State of the Industry (SOI) meeting as policy discussions with congressional tax writers, issue experts, and Roundtable members ranged from specific measures in a recently approved tax package by the House Ways and Means Committee to a landmark Supreme Court case.

Tax: What Lies Ahead

Real Estate Roundtable President and CEO Jeffrey Deboer shakes hands with Senate Finance Committee Chair Ron Wyden (D-OR)
  • Senate Finance Committee Chairman Ron Wyden (D-OR), right with The Roundtable’s Jeffrey DeBoer, discussed the recent tax package passed by the House Ways and Means Committee and its uncertain path in the Senate. In addition to an expansion of the low-income housing tax credit, the $77 billion bill includes a retroactive, four-year extension (2022–2025) of the taxpayer-favorable EBITDA standard for measuring the amount of business interest deductible under section 163(j). It also contains an extension of 100% bonus depreciation through the end of 2025. (Roundtable Weekly, Jan. 19)
Tax panel with Ryan McCormick and congressional tax staff
  • “What’s in Front of Congressional Tax Writers: 2024 and Beyond” was explored by (left to right) Roundtable Senior Vice President and Counsel Ryan McCormick; Mark Roman, (Staff Director, Republican Majority House Ways and Means Committee); and Joshua Sheinkman (Staff Director, Democrat Majority Senate Finance Committee).  The congressional tax experts discussed measures in the recent tax package and noted the scheduled expiration of Tax Cuts and Jobs Act (TCJA) incentives at the end of 2025—and what proposals may emerge to extend them.

Supreme Court Challenge

• Roundtable Tax Policy Advisory Committee (TPAC) member Don Susswein (Principal, RSM US LLP)
  • Roundtable Tax Policy Advisory Committee (TPAC) member Don Susswein (Principal, RSM US LLP) presented an overview of an important Supreme Court case (Moore v. United States) that challenges the federal government’s constitutional authority to tax unrealized income. (Roundtable Weekly, Dec. 8)

TPAC holds monthly Zoom calls on timely, compelling tax policy issues affecting CRE. If you are interested in joining, contact The Roundtable’s Ryan McCormick.

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Policymakers Emphasize Affordable Housing Incentives, Increasing Supply 

Posted on by Trey Jackson

Three U.S. Senators discussed national housing policy with industry leaders and Roundtable members during this week’s State of the Industry (SOI) meeting. (See Meeting agenda)

Need for Housing Incentives

Sen. Ron Wyden (D-OR)
  • Senate Finance Committee Chairman Ron Wyden (D-OR) discussed the importance of expanding and extending the Low-Income Housing Tax Credit (LIHTC), which was included in a tax package advanced by the House Ways and Means Committee last week by a vote of 40-3. Sen. Wyden negotiated the $77 billion bill with Ways and Means Chairman Jason Smith (R-MO) and commended the overwhelming margin of bipartisan support in the committee vote. (Roundtable Weekly, Jan. 19)
Housing Panel at RER's 2024 State of the Industry Meeting. Moderator Kathleen McCarthy, Blackstone
  • Sen. Maggie Hassan (D-NH), center, discussed what can be done to address U.S. housing challenges with Kathleen McCarthy, left, (Chair-Elect, The Real Estate Roundtable | Global Co-Head of Real Estate, Blackstone), and Shaun Donovan, right, (CEO and President, Enterprise Community Partners |former HUD Secretary and OMB Director). Sen. Hassan spoke about the urgent need for national policy to encourage development of more workforce housing, while Mr. Donovan noted the congressional tax bill under consideration would create 200,000 new affordable housing units.
Sen. Debbie Stabenow (D-MI) at RER's 2024 State of the Industry meeting
  • Sen. Debbie Stabenow (D-MI)– introduced by Roundtable Chair Emeritus (2012-2015) Robert Taubman (Chairman, President & CEO, Taubman Centers, Inc.) – spoke about legislative efforts to revitalize downtowns. Sen. Stabenow referred to the recent tax package as an encouraging development for affordable housing, yet noted how more is needed to incentivize conversions of commercial properties to multifamily use. Stabenow is an original co-sponsor of the Revitalizing Downtowns Act (H.R. 4759) to encourage adaptive use of older buildings.

Housing policy and incentives advocated by The Roundtable to encourage more affordable housing supply are topics weaved throughout RER’s 2024 Policy Priorities. (See Executive Summary)

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