NAA/NMHC’s fight to defeat a proposed near-tripling of taxation on the Promote (carried interest) continues to advance. In March, the National Association of Counties (NACo) joined the U.S. Conference of Mayors in passing a resolution opposing a change in the tax treatment of a partnership’s carried interest.
The NACo resolution notes that such a tax law change would “have a serious, adverse impact on the ability of real estate partnerships to invest in distressed communities.”
Passage of it, and a similar January resolution by the U.S. Conference of Mayors, is critical to our efforts to educate Congress about the very negative consequences that the carried interest tax increase proposal would have on “main streets” nationwide.
Both the NACo resolution and the January U.S. Conference of Mayors resolution resulted from an intense local lobbying effort conducted by NAA/NMHC and other groups including ICSC, NAIOP and BOMA International.
Importantly, the tax extenders bill (H.R. 4213) passed by the Senate on March 10 would not be paid for with a carried interest tax hike, unlike the House-passed version of the legislation. NAA/NMHC will continue to urge lawmakers not to include the carried interest provisions in the compromise legislation.