BOMA ADVOCACY UPDATE September 2019 Emily Naden, Director of - - PowerPoint PPT Presentation

BOMA ADVOCACY UPDATE

September 2019 Emily Naden, Director of Federal Affairs

Who We Are

• 5 Fabulous government affairs staff based in DC
• 2 federal lobbyists covering Capitol Hill and the federal

agencies

• 2 great state and local affairs staff
• 1 political fundraiser
• The most comprehensive codes team in all of real estate

ADVOCACY IN YOUR INBOX

A Divided Capitol

2019 Priority Issues Update

• 179D-Energy Efficient Tax

Deduction

• Fixing Qualified Improvement

Property

• Terrorism Risk Insurance (TRIA)

179D : Energy Efficient Commercial Buildings

• First enacted in 2006
• Remains the only federal

incentive for EE improvements

• Expired at the end of 2017
• BOMA testified before Congress

in March of 2018

President Henry Chamberlain Testifies

179D: Commercial Buildings Energy Efficient

• House: “Tax Extenders” legislation including 179D was passed out of

committee in the House in late June. It would reinstate and extend the deduction through 2020.

• We are working closely with Rep. Blumenauer (D-OR) and Tom Rice (R-SC)
• n a bill that would make 179D permanent
• Senate: Senate Finance convened task forces to examine each unresolved

tax provision- BOMA has presented the case for 179D

• The bi-partisan report recommended 179D be made permanent

Qualified Improvement Property (QIP)

• A drafting error in the Tax Cuts and Jobs Act (TCJA) of 2017

combined 4 property types, including leasehold, into one category (Qualified Improvement Property) and neglected to specify a depreciation period

• Meant to provide immediate expensing through 2022 and

then revert to 15 year depreciation.

• Under present law, leasehold improvements depreciate at

39 years

• Treasury was a potential path for fix, but not going to

happen

Qualified Improvement Property (QIP)

• The Restoring Investment in Improvements Act was

introduced in both the House & Senate

• Senate: (S.803) sponsored by Sens. Jones, Toomey, King,

Manchin & Shaheen

• Currently has 44 co-sponsors
• House: (H.R. 1869) sponsored by Reps. Panetta & Walorski
• Currently has 193 co-sponsors
• Lots of Co-sponsors means lots of momentum, but the bill will

not move on its own

TRIA Reauthorization

• First enacted in 2002 TRIA has been

reauthorized 3 times

• Federal backstop for insurers and

reinsurers

• BOMA cares because TRIA coverage is

required for our transactions

• Set to expire at the end of 2020
• So we’ve got a ton of time right??

Opportunity Zones

Potential Benefits Potential Pitfalls

Doubling the basis is hard and harder the larger the business Bad press: Zones are not equal, some of the most poor census tracts were not selected, some that were are 3X poverty rate Does nothing for a business already in the Ozone Donut holes where there is no census tract

Defer capital gains and avoid other capital gains Rejuvenate a blighted, populated area Bring jobs, commerce, money flows = people are happy Who will this really benefit?

Deadline to buy-in to get full benefit end of this calendar year

Timeline for Using Opportunity Zones

Lands of OZ in PAC NW

Parking Taxation

At first this was merely a tenant issue…then the IRS issues guidance. Any tenants who use parking on your lots or structures may be subject to pay taxes on the value of that parking…even if you don’t charge And who do they think is going to calculate this imputed value? And does their calculation make any sense?

Wyden’s Capital Gains Plan

• Gains taxed at ordinary income levels

instead of 20/15/0 current preference levels

• Pay taxes on annual gains, not just at

realization event and take deduction for losses

• Applies to taxpayers $1million in income
• r $10 million in assets for 3 consecutive

yrs

• $1.5-$2 TRILLION in revenue would shore

up Social Security Trust Fund

State and Local Resources

State Legislative Tracking - Local associations can opt to receive regular reports on relevant legislation and/or email alerts on specific bills as actions take place Issue Maps - Information on state and local priorities will be displayed on the BOMA website, where you can easily see what’s going on across the country State & Local Community - This tool is being launched as an important vehicle for asking questions and sharing information among colleagues on policy and legislation

State and Local Resources

New Tools

The Industry Defense Fund Works for You

2,000+

400M+

Buildings Signed Up Square Feet Shared

27

Cities Represented

2,000+

493M+

Buildings Signed Up Square Feet Shared

412

Cities Represented

BOMA W2 Challenge

BOMA CODES PROGRAM

BOMAPAC is Growing

$1,000 BOMAPAC Challenge

• Our goal for this year is $90,000
• If all local associations commit to raising at least $1,000 for the PAC in 2019 we

can surpass this goal

• Each BAE who raises $1,000 for PAC from his/her local association will be

entered to win a $500 VISA gift card

National Issues Conference

February 3, 2020 Washington, DC

Advocacy Staff

Emily Naden

Director of Federal Affairs

Ken Rosenfeld

Director of State & Local Affairs

Advocacy, Codes and Standards

Meg Novak

GA and PAC Manager

John Catlett

Senior Codes Consultant

BOMA International

John Bryant

VP, Advocacy & Building Codes

Advocacy & Building Codes Contacts

Andrew Klein

Energy Codes Consultant

Maria Balzer-Pisciotta

Manager of State & Local Affairs

Questions?