Thomas J. Bisacquino, President and CEO of NAIOP, the Commercial Real Estate Development Association, commented on two policies that are critical to the long-term health of the commercial real estate industry: federal tax policy and terrorism risk insurance.
“Among the most important tax provisions to commercial real estate is the depreciation provision for leasehold improvements,” said Bisacquino. “We commend those in Congress who are working to ensure that commercial real estate isn’t subjected to a tax increase on qualified leasehold improvements on commercial property, due to expiration of this important part of the tax code. However, absent a comprehensive tax overhaul, which we support, Congress must strive for tax policy that goes beyond short-term extensions, and that instead provides certainty for investors and developers so that they continue to make the long-term investment decisions that help fuel our economy.”
Bisacquino also strongly encouraged Congress to reauthorize the Terrorism Risk Insurance Act, calling it “vital federal policy for developers and the jobs the industry creates.” In an argument for fiscal responsibility, Bisacquino explained that TRIA is good policy for U.S. taxpayers, “because it places responsibility for the first $100 million in aggregate losses on the insurance industry and private sector capital, not the U.S. Treasury.”
In conclusion, Bisacquino noted the strong bipartisan support for both provisions: “Given all that is at stake — both in tax policy as well as TRIA — we are encouraged by statements of support from House and Senate leaders from both sides of the aisle. While there are inevitable differences of opinion, we believe there is significant bipartisan consensus that these policies have worked well and need to be renewed before Congress concludes its legislative business at the end of this year.”