President Joe Biden has unveiled two momentous plans that are part of his “Build Back Better” agenda. Costs to fund the American Jobs Plan and the American Families Plan could result in consequential tax changes and have a tremendous impact on CRE.
We’re at the beginning of the legislative process for these proposals, and there are months of negotiations ahead of us. NAIOP’s team on Capitol Hill will be working with Congress to help preserve existing tax treatments that have supported a healthy and vibrant commercial real estate industry so that we can continue to be a leading contributor to U.S. GDP, create valuable jobs, and build communities.
The following are the differences in current law vs. the Biden proposal:
Capital Gains: Current Law (23.8%); Proposed (43.4%)
(includes 3.8% Net Investment Income Tax
Ordinary Income: Current Law (37%); Proposed (39.6%)
Corporate Tax Rate: Current Law (21%); Proposed (28%)
Carried Interest: Current Law (23.8%); Proposed (39.6%)
Section 1031 LKE (Deferral): Current Law (0%); Proposed (43.4%)
Join NAIOP on June 22nd to Learn More!
Aquiles Suarez, NAIOP’s senior vice president for government affairs, will provide an update during a webinar on June 22 at 11:00-11:45 PT (2:00 pm ET) to answer questions about what we can expect as the legislative process continues. We encourage you to register here.