Thomas J. Bisacquino, president and CEO of NAIOP, the Commercial Real Estate Development Association, has released the following statement in response to Ways and Means Committee Chairman Dave Camp’s tax reform proposal:
“We welcome Chairman Camp’s proposal to fundamentally reform the tax system, and we look forward to studying the plan more carefully in the days to come. At first glance, our reaction is that some provisions are encouraging, while others are troubling.
We view this as the beginning of an important discussion for our country and for our economy, and we stand ready to provide our guidance so America’s commercial real estate sector can continue to grow and create jobs.
Commercial real estate development continues to be a driving factor in our economy, accounting for millions of American jobs and hundreds of billions of dollars in new investment and growth in every community across our nation. Commercial real estate is an inherent part of our culture – it’s where we work, shop and play. In short, a strong commercial real estate industry is critical for a strong America.
Tax reform that simplifies the code while continuing to incentivize investment could be very positive, yet we are concerned with proposed changes that would lengthen the time to depreciate real estate assets beyond their useful economic lives, since we believe it would create disincentives to needed investment in real estate. Likewise, there are other changes that may lead to a reduction in capital available for development, which would lead to fewer jobs and stagnate growth.
Despite these concerns, we applaud Chairman Camp for his tireless work to bring a fairer and simpler tax code to our country, and we look forward to working with him, Members of Congress and the Administration on this important issue.”