NAIOP Commends Senate for Passage of Tax Extenders Legislation, September 24, 2008
Washington, D.C. — NAIOP commends the United
State Senate for passing H.R. 6049, the Renewable Energy and Job
Creation Act of 2008, by a vote of 93 to 2. The legislation would
extend 15-year qualified leasehold improvement depreciation and
brownfields remediation expensing tax provisions, both of which are
vital to the commercial real estate industry and expired at the end
of 2007. In addition, H.R. 6049 also extends the energy efficient
commercial building tax deduction, due to expire at the end of
2008, for an additional five years, through 2013.
In response to the Senate’s action, Thomas J. Bisacquino, NAIOP president, made the following statement:
“At this unprecedented time for the financial services and real estate industries, NAIOP and its members applaud the Senate for passing tax extenders legislation that would give the commercial real estate industry much needed stability and certainty in tax policy through 2009. The tax provisions affecting commercial real estate passed today by the Senate enjoy broad bipartisan support. We urge the House of Representatives to move quickly to resolve differences with the Senate, and ensure that legislation extending these provisions is sent to the president prior to Congress leaving for the October pre-election recess.”
Qualified leasehold improvement depreciation, also known as tenant improvement depreciation, is the ability to deduct the cost of the customized improvements a building owner makes to a rental space to configure it for a tenant’s needs. NAIOP supports extending the provision reducing the time frame for tenant improvement depreciation to 15 years, down from 39 years, which more accurately reflects the economic reality of the improvements’ typical lifespan.
Brownfields remediation expensing allows the costs incurred in cleaning up a brownfields site to be written off immediately, creating an important incentive to revitalize contaminated properties. Extending this deduction will allow developers to recoup expensive capital costs from environmental remediation to continue developing the project.
The energy efficient commercial building deduction provides a tax deduction for expenses related to the design and installation of energy-efficient commercial building systems.
NAIOP, its real estate allies and a broad coalition of 114 business, labor and education organizations have been working with Senators and Members of Congress throughout the year to pass legislation extending these expired or expiring tax provisions essential to the business community. The House included the tax extenders in its version of HR 6049 passed earlier this year, which would also have provided relief from the Alternative Minimum Tax (AMT) for millions of taxpayers.
“The commercial real estate industry is already suffering from the economic fallout of the crisis in our housing and financial markets,” according to Bisacquino. “We cannot afford continued uncertainty by delaying to extend these much needed tax provisions.”
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About NAIOP: The National Association of Industrial and Office Properties is the nation’s leading trade association for developers, owners, investors and other professionals in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises 17,500+ members in 56 chapters throughout the United States and Canada. NAIOP provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.
In response to the Senate’s action, Thomas J. Bisacquino, NAIOP president, made the following statement:
“At this unprecedented time for the financial services and real estate industries, NAIOP and its members applaud the Senate for passing tax extenders legislation that would give the commercial real estate industry much needed stability and certainty in tax policy through 2009. The tax provisions affecting commercial real estate passed today by the Senate enjoy broad bipartisan support. We urge the House of Representatives to move quickly to resolve differences with the Senate, and ensure that legislation extending these provisions is sent to the president prior to Congress leaving for the October pre-election recess.”
Qualified leasehold improvement depreciation, also known as tenant improvement depreciation, is the ability to deduct the cost of the customized improvements a building owner makes to a rental space to configure it for a tenant’s needs. NAIOP supports extending the provision reducing the time frame for tenant improvement depreciation to 15 years, down from 39 years, which more accurately reflects the economic reality of the improvements’ typical lifespan.
Brownfields remediation expensing allows the costs incurred in cleaning up a brownfields site to be written off immediately, creating an important incentive to revitalize contaminated properties. Extending this deduction will allow developers to recoup expensive capital costs from environmental remediation to continue developing the project.
The energy efficient commercial building deduction provides a tax deduction for expenses related to the design and installation of energy-efficient commercial building systems.
NAIOP, its real estate allies and a broad coalition of 114 business, labor and education organizations have been working with Senators and Members of Congress throughout the year to pass legislation extending these expired or expiring tax provisions essential to the business community. The House included the tax extenders in its version of HR 6049 passed earlier this year, which would also have provided relief from the Alternative Minimum Tax (AMT) for millions of taxpayers.
“The commercial real estate industry is already suffering from the economic fallout of the crisis in our housing and financial markets,” according to Bisacquino. “We cannot afford continued uncertainty by delaying to extend these much needed tax provisions.”
# # #
About NAIOP: The National Association of Industrial and Office Properties is the nation’s leading trade association for developers, owners, investors and other professionals in industrial, office and mixed-use commercial real estate. Founded in 1967, NAIOP comprises 17,500+ members in 56 chapters throughout the United States and Canada. NAIOP provides networking opportunities, educational programs, research on trends and innovations and strong legislative representation. For more information, visit www.naiop.org.