Multifamily Depreciation Parity Act of 2019

COVID-19 Tax Relief H.R. 6800, Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, Division B -- Revenue Provisions: Title I Economic Stimulus: Section 20101: Dependents taken into account in determining credit and rebates; Section 20111: Additional recovery rebates to individuals; and Section 20131: Child Tax Credit improvements for 2020. Title II -- Additional Relief for Workers: Section 20211: Improvements to Employee Retention Credit; Section 20212: Payroll credit for certain fixed expenses of employers subject to closure by reason of COVID-19; Section 20221: Extension of Credits; Section 20222: Repeal of reduced credit for certain leave; Section 20223: Increase in limitation on credit for paid family leave; Section 20231: Payroll tax deferral for recipients of certain loan forgiveness; and Section 20235: Clarification of treatment of expenses paid or incurred with proceeds from certain loans and grants. Title III: Net Operating Losses: Section 20301: Limitation on excess business losses of non-corporate taxpayers restored and made permanent; and Section 20302: Certain taxpayers allowed carryback of net operating losses arising in 2019 and 2020. Division E -- Continued assistance to unemployed workers, all provisions. Supported the following legislative tax proposals for any further Coronavirus relief package: Clarify that a 30-year depreciation period applies to multifamily buildings placed in service prior to 2018 for taxpayers electing out of limits on interest deductibility (H.R. 5313 / S. 2984): expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extend and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. With respect to expanding the Low-Income Housing Tax Credit, we requested Congress enact COVID-19 response legislation that would: Enact a minimum 4 percent Low-Income Housing Tax Credit rate; lower the 50 percent bond financing threshold for 4 percent Low-Income Housing Tax Credit developments; increase the annual Low-Income Housing Tax Credit by 50 percent; and provide additional basis boots for vulnerable properties impacted by COVID-19. Requested that Treasury Department and Internal Revenue Service take immediate action to provide deadline extensions and other necessary accommodations for the Low-Income Housing Tax Credit program in light of the severe disruptions the COVID-19 pandemic is having on development and construction activities and the ongoing operations of existing Housing Credit properties. With respect to Opportunity Zones, we also supported legislative proposals to: allow opportunity funds to raise capital from all sources, not just gain rolled over from a recently disposed investment; spur productive real estate investment in low-income communities by providing that a 50 percent increase in the basis of a building constitutes a substantial improvement of the property; provide certainty to potential Opportunity Zone investors by codifying the tax rate on deferred gain and extending current deadlines for the basis increase and recognition of deferred gain; and preserve the economic incentives of the original Opportunity Zone provisions by extending for two years the recognition date for deferred gain, and consequently, the deadlines that must be met in order to qualify for the increase in basis for gain rolled into an opportunity fund. Requested Treasury and Internal Revenue Service extend the deadlines to identify replacement property and / or complete like-kind exchanges per the relief described in Rev. Proc. 2018-58 and authorized under Internal Revenue Code Section 7508A. Department of the Treasury and Internal Revenue Service, Notice 2020-23, 26 CFR 601.601, Update to Notice 2020-18, Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, Provisions related to extending the 45-day identification period and 180-day closing period for Like-Kind Exchanges. Specifically, we sought clarification that with respect to like-kind exchanges described in Section 1031 that Section 17 of Rev. Proc. 2018-58 applies. We also requested that March 13, 2020, be deemed to be the beginning date of disaster relief under Section 17, that each day of the disaster period from March 13 to July 15, 2020 be treated as the date of the federally declared disaster, and that taxpayers with one like-kind exchange deadline falling within the Notice 2020-23 disaster period be permitted to an extension of both deadlines. Internal Revenue Service Notice 2020-32 regarding tax deductibility of expenses related to Paycheck Protection Program loans H.R. 6821, Small Business Expense Protection Act of 2020, to clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses, all provisions. S. 3612, Small Business Expense Protection Act of 2020, to clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses, all provisions. Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), Section 2303: Modifications for net operating losses; and Section 2304: Modification of limitation on losses for taxpayers other than corporations. Draft legislative proposal to amend the Internal Revenue Code of 1986 to provide a special allowance for certain real property placed in service during the COVID-19 pandemic. Considered legislative proposal to provide charitable tax deduction for real estate owners providing housing to COVID-19 first responders. Considered legislative proposals regarding additional carryback of General Business Credit Depreciation Rules H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Infrastructure Development H.R. 2, The Moving Forward Act, Division M -- Revenue Provisions: Title IV -- Green Energy, Subtitle C -- Green Energy and Efficiency Incentives for Individuals, Section 90423: Energy efficient commercial buildings deduction and Section 90424: Extension, increase, and modifications of new energy efficient home credit; Title VI -- Housing, Subtitle A -- Low-income Housing Tax Credit Improvements, all provisions. H.R. 6175, Revitalizing Economies, Housing, and Businesses Act of 2020 or the REHAB Act of 2020, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Supported infrastructure tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extending and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. Low-Income Housing Tax Credit and Middle-Income Housing Tax Credit S. 4078, Emergency Affordable Housing Act, to amend the Internal Revenue Code of 1986 to improve the low-income housing credit and provide relief relating to the coronavirus emergency, and for other purposes, all provisions. H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. Energy We support extending the IRC Section 45L New Energy Efficient Home Credit and extending and modifying the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Like-Kind Exchanges Support maintaining current tax law relative to the tax treatment of 1031 Like-Kind Exchanges. Department of the Treasury and Internal Revenue Service, REG 117589-18, RIN 1545-BP02, 26 CFR Part 1, Statutory Limitations on Like-Kind Exchanges Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Client expense: $1,520,000 · Firm income: Not reported

Government targets: Army, Dept of (Corps of Engineers), Consumer Financial Protection Bureau (CFPB), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Federal Communications Commission (FCC), Federal Deposit Insurance Corporation (FDIC), Federal Emergency Management Agency (FEMA), Federal Housing Finance Agency (FHFA), Federal Reserve System, HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Housing & Urban Development, Dept of (HUD), Internal Revenue Service (IRS), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of the Comptroller of the Currency (OCC), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), Treasury, Dept of, U.S. Postal Service (USPS)

Matters relating to the impact of tax reform on real estate investments. H.R. 5313, the Multifamily Depreciation Parity Act of 2019.

Client expense: Not reported · Firm income: $140,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Lobbied for extension of certain deadlines associated with like-kind exchanges under IRC Sec. 1031, and opportunity zones under IRC Sec. 1400Z. Lobbied for modifications and enhancements to the opportunity zone program. Lobbied for passage of H.R. 2210, the "Invest in America Act," to remove barriers to foreign investment in infrastructure projects created by the Foreign Investment in Real Property Tax Act (FIRPTA) of 1980. Lobbied for more favorable tax treatment of investments in energy-efficient improvements in commercial buildings (IRC Sec. 179D), and expansion of the Historic Tax Credit (IRC Sec. 47), provisions included in H.R. 2. Lobbied for change in tax treatment of Contributions in Aid of Construction under IRC Section 118 (S. 2942). Lobbied for clarification regarding depreciation period of certain multifamily buildings (H.R. 5313).

Client expense: $252,311 · Firm income: Not reported

Government targets: Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Federal Reserve System, HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Issues related to tax reform including H.R. 1, Bill to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (bill formerly known as the Tax Cuts and Jobs Act), S. 1, an original bill to provide for reconciliation pursuant to title II of the concurrent resolution on the budget for fiscal year 2018, H.R. 5313 & S.2984, Multifamily Depreciation Parity Act of 2019. H.R. 748 Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Client expense: Not reported · Firm income: $50,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

COVID-19 Tax Relief H.R. 6800, Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, Division B -- Revenue Provisions: Title I Economic Stimulus: Section 20101: Dependents taken into account in determining credit and rebates; Section 20111: Additional recovery rebates to individuals; and Section 20131: Child Tax Credit improvements for 2020. Title II -- Additional Relief for Workers: Section 20211: Improvements to Employee Retention Credit; Section 20212: Payroll credit for certain fixed expenses of employers subject to closure by reason of COVID-19; Section 20221: Extension of Credits; Section 20222: Repeal of reduced credit for certain leave; Section 20223: Increase in limitation on credit for paid family leave; Section 20231: Payroll tax deferral for recipients of certain loan forgiveness; and Section 20235: Clarification of treatment of expenses paid or incurred with proceeds from certain loans and grants. Title III: Net Operating Losses: Section 20301: Limitation on excess business losses of non-corporate taxpayers restored and made permanent; and Section 20302: Certain taxpayers allowed carryback of net operating losses arising in 2019 and 2020. Division E -- Continued assistance to unemployed workers, all provisions. Supported the following legislative tax proposals for any further Coronavirus relief package: Clarify that a 30-year depreciation period applies to multifamily buildings placed in service prior to 2018 for taxpayers electing out of limits on interest deductibility (H.R. 5313 / S. 2984): expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extend and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. With respect to expanding the Low-Income Housing Tax Credit, we requested Congress enact COVID-19 response legislation that would: Enact a minimum 4 percent Low-Income Housing Tax Credit rate; lower the 50 percent bond financing threshold for 4 percent Low-Income Housing Tax Credit developments; increase the annual Low-Income Housing Tax Credit by 50 percent; and provide additional basis boots for vulnerable properties impacted by COVID-19. Requested that Treasury Department and Internal Revenue Service take immediate action to provide deadline extensions and other necessary accommodations for the Low-Income Housing Tax Credit program in light of the severe disruptions the COVID-19 pandemic is having on development and construction activities and the ongoing operations of existing Housing Credit properties. With respect to Opportunity Zones, we also supported legislative proposals to: allow opportunity funds to raise capital from all sources, not just gain rolled over from a recently disposed investment; spur productive real estate investment in low-income communities by providing that a 50 percent increase in the basis of a building constitutes a substantial improvement of the property; provide certainty to potential Opportunity Zone investors by codifying the tax rate on deferred gain and extending current deadlines for the basis increase and recognition of deferred gain; and preserve the economic incentives of the original Opportunity Zone provisions by extending for two years the recognition date for deferred gain, and consequently, the deadlines that must be met in order to qualify for the increase in basis for gain rolled into an opportunity fund. Requested Treasury and Internal Revenue Service extend the deadlines to identify replacement property and / or complete like-kind exchanges per the relief described in Rev. Proc. 2018-58 and authorized under Internal Revenue Code Section 7508A. Department of the Treasury and Internal Revenue Service, Notice 2020-23, 26 CFR 601.601, Update to Notice 2020-18, Additional Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, Provisions related to extending the 45-day identification period and 180-day closing period for Like-Kind Exchanges. Specifically, we sought clarification that with respect to like-kind exchanges described in Section 1031 that Section 17 of Rev. Proc. 2018-58 applies. We also requested that March 13, 2020, be deemed to be the beginning date of disaster relief under Section 17, that each day of the disaster period from March 13 to July 15, 2020 be treated as the date of the federally declared disaster, and that taxpayers with one like-kind exchange deadline falling within the Notice 2020-23 disaster period be permitted to an extension of both deadlines. Internal Revenue Service Notice 2020-32 regarding tax deductibility of expenses related to Paycheck Protection Program loans H.R. 6821, Small Business Expense Protection Act of 2020, to clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses, all provisions. S. 3612, Small Business Expense Protection Act of 2020, to clarify for purposes of the Internal Revenue Code of 1986 that receipt of coronavirus assistance does not affect the tax treatment of ordinary business expenses, all provisions. Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), Section 2303: Modifications for net operating losses; and Section 2304: Modification of limitation on losses for taxpayers other than corporations. Draft legislative proposal to amend the Internal Revenue Code of 1986 to provide a special allowance for certain real property placed in service during the COVID-19 pandemic. Considered legislative proposal to provide charitable tax deduction for real estate owners providing housing to COVID-19 first responders. Considered legislative proposals regarding additional carryback of General Business Credit Depreciation Rules H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Infrastructure Development H.R. 2, The Moving Forward Act, Division M -- Revenue Provisions: Title IV -- Green Energy, Subtitle C -- Green Energy and Efficiency Incentives for Individuals, Section 90423: Energy efficient commercial buildings deduction and Section 90424: Extension, increase, and modifications of new energy efficient home credit; Title VI -- Housing, Subtitle A -- Low-income Housing Tax Credit Improvements, all provisions. H.R. 6175, Revitalizing Economies, Housing, and Businesses Act of 2020 or the REHAB Act of 2020, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Supported infrastructure tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extending and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. Low-Income Housing Tax Credit and Middle-Income Housing Tax Credit S. 4078, Emergency Affordable Housing Act, to amend the Internal Revenue Code of 1986 to improve the low-income housing credit and provide relief relating to the coronavirus emergency, and for other purposes, all provisions. H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. Energy We support extending the IRC Section 45L New Energy Efficient Home Credit and extending and modifying the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Like-Kind Exchanges Support maintaining current tax law relative to the tax treatment of 1031 Like-Kind Exchanges. Department of the Treasury and Internal Revenue Service, REG 117589-18, RIN 1545-BP02, 26 CFR Part 1, Statutory Limitations on Like-Kind Exchanges Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Depreciation Rules H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Business Interest Deductibility Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-106089-18, RIN 1545-BO73, Limitation on Deduction for Business Interest Expense, issues pertaining to: (1) the interaction between the small business exception and the real estate trade or business election (as well as resulting impacts on the depreciation of multifamily buildings); and (2) the application of the REIT safe harbor to certain controlled partnerships. Opportunity Zones Opportunity Zones: No bill introduced but support legislative change to reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone substantial improvement purposes. S. 2787, Opportunity Zone Reporting and Reform Act, to amend the Internal Revenue Code of 1986 to require reporting for qualified opportunity funds, to make modifications to opportunity zones, and for other purposes, all provisions. Low-Income Housing Tax Credit, Middle-Income Housing Tax Credit, and Incentives for Housing Affordability and Infrastructure Development H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. H.R. 6175, Revitalizing Economies, Housing, and Businesses Act of 2020 or the REHAB Act of 2020, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Draft legislative proposal to amend the Internal Revenue Code of 1986 to provide a special allowance for certain real property placed in service during the COVID-19 pandemic. Support infrastructure bill including tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extending and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. Energy We support extending the IRC Section 45L New Energy Efficient Home Credit and extending and modifying the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties H.R. 4506, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2588, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Fire Sprinklers H.R. 4685, High Rise Fire Sprinkler Incentive Act of 2019, to amend the Internal Revenue Code of 1986 to classify certain automatic fire sprinkler system retrofits as 15-year property for purposes of depreciation, all provisions. Tax Treatment of Capital Income Proposal by Senate Finance Committee Ranking Member Ron Wyden, Treat Wealth Like Wages, A plan to fix our broken tax code, ensure the wealthy pay their fair share, and protect Social Security. Like-Kind Exchanges Support maintaining current tax law relative to the tax treatment of 1031 Like-Kind Exchanges. Letter to Treasury and Internal Revenue Service requesting that the deadlines to identify replacement property and / or complete like-kind exchanges be extended per the relief described in Rev. Proc. 2018-58 and authorized under Internal Revenue Code 7508A. Carried Interest H.R. 1735, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 781, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 1639, Ending the Carried Interest Loophole Act, to amend the Internal Revenue Code of 1986 to revise the treatment of partnership interests received in connection with the performance of services, and for other purposes, all provisions. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Issues related to tax reform including H.R. 1, Bill to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (bill formerly known as the Tax Cuts and Jobs Act), S. 1, an original bill to provide for reconciliation pursuant to title II of the concurrent resolution on the budget for fiscal year 2018, H.R. H.R. 5313 & S.2984, Multifamily Depreciation Parity Act of 2019. H.R. 748 Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Client expense: Not reported · Firm income: $50,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Depreciation Rules H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Business Interest Deductibility Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-106089-18, RIN 1545-BO73, Limitation on Deduction for Business Interest Expense, issues pertaining to: (1) the interaction between the small business exception and the real estate trade or business election (as well as resulting impacts on the depreciation of multifamily buildings); and (2) the application of the REIT safe harbor to certain controlled partnerships. Opportunity Zones Opportunity Zones: No bill introduced but support legislative change to reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone substantial improvement purposes. S. 2787, Opportunity Zone Reporting and Reform Act, to amend the Internal Revenue Code of 1986 to require reporting for qualified opportunity funds, to make modifications to opportunity zones, and for other purposes, all provisions. Low-Income Housing Tax Credit, Middle-Income Housing Tax Credit, and Incentives for Housing Affordability and Infrastructure Development H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. H.R. 6175, Revitalizing Economies, Housing, and Businesses Act of 2020 or the REHAB Act of 2020, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Draft legislative proposal to amend the Internal Revenue Code of 1986 to provide a special allowance for certain real property placed in service during the COVID-19 pandemic. Support infrastructure bill including tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; extending and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties; and provide a rehabilitation tax credit for rehabilitating multifamily housing near transit. Energy We support extending the IRC Section 45L New Energy Efficient Home Credit and extending and modifying the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties H.R. 4506, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2588, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Fire Sprinklers H.R. 4685, High Rise Fire Sprinkler Incentive Act of 2019, to amend the Internal Revenue Code of 1986 to classify certain automatic fire sprinkler system retrofits as 15-year property for purposes of depreciation, all provisions. Tax Treatment of Capital Income Proposal by Senate Finance Committee Ranking Member Ron Wyden, Treat Wealth Like Wages, A plan to fix our broken tax code, ensure the wealthy pay their fair share, and protect Social Security. Like-Kind Exchanges Support maintaining current tax law relative to the tax treatment of 1031 Like-Kind Exchanges. Letter to Treasury and Internal Revenue Service requesting that the deadlines to identify replacement property and / or complete like-kind exchanges be extended per the relief described in Rev. Proc. 2018-58 and authorized under Internal Revenue Code 7508A. Carried Interest H.R. 1735, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 781, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 1639, Ending the Carried Interest Loophole Act, to amend the Internal Revenue Code of 1986 to revise the treatment of partnership interests received in connection with the performance of services, and for other purposes, all provisions. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Lobbied for technical corrections to the Tax Cuts and Jobs Act of 2017, specifically regarding clarifications to the definition of Qualified Improvement Property and the appropriate depreciation period applicable to such property, which was intended to be 15 years (H.R. 748, H.R. 1869, S. 803). Lobbied for the relaxation of rules governing the use of Net Operating Losses (NOL) to offset taxable income, allowing for a 5-year carryback of NOL (CARES Act, H.R. 748). Lobbied for extension of certain deadlines associated with like-kind exchanges under IRC Sec. 1031 Lobbied for passage of H.R. 2210, the "Invest in America Act," to remove barriers to foreign investment in infrastructure projects created by the Foreign Investment in Real Property Tax Act (FIRPTA) of 1980. Lobbied for more favorable investments in energy-efficient improvements in commercial buildings. Lobbied for change in tax treatment of Contributions in Aid of Construction under IRC Section 118 (S. 2942). Lobbied for clarification regarding depreciation period of certain multifamily buildings (H.R. 5313)

Client expense: $312,302 · Firm income: Not reported

Government targets: Army, Dept of (Corps of Engineers), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Federal Reserve System, HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Depreciation Rules Requested Congress pass legislation to clarify that firms electing out of limits on business interest deductibility may depreciate multifamily buildings placed in service prior to 2018 over 30 years. H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Business Interest Deductibility Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-106089-18, RIN 1545-BO73, Limitation on Deduction for Business Interest Expense, issues pertaining to: (1) the interaction between the small business exception and the real estate trade or business election (as well as resulting impacts on the depreciation of multifamily buildings); and (2) the application of the REIT safe harbor to certain controlled partnerships. Opportunity Zones Department of the Treasury and Internal Revenue Service, 26 CFR Part 1, REG-120186-18, RIN 1545-BP04, Investing in Qualified Opportunity Funds. Note: This proposed rule, as well as proposed rule: Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-115420-18, RIN 1545-BP03, Investing in Qualified Opportunity Funds, became a final regulation on December 19, 2019: Department of the Treasury and Internal Revenue Service, 26 CFR Part 1, TD 9889, RIN 1545-BP04, Investing in Qualified Opportunity Funds. Opportunity Zones: No bill introduced but support legislative change to reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone substantial improvement purposes. H.R. 2593, to require the Secretary of the Treasury to collect data and issue a report on the opportunity zone tax incentives enacted by the 2017 tax reform legislation, and for other purposes, all provisions. H.R. 4011, to amend the Internal Revenue Code of 1986 to require lead remediation for qualified opportunity zone property originally constructed before January 1, 1978. H.R. 5011, Opportunity Zone Accountability and Transparency Act, to amend the Internal Revenue Code of 1986 to require reporting by qualified opportunity funds, all provisions. S. 1344, to require the Secretary of the Treasury to collect data and issue a report on the opportunity zone tax incentives enacted by the 2017 tax reform legislation, and for other purposes, all provisions. S. 2787, Opportunity Zone Reporting and Reform Act, to amend the Internal Revenue Code of 1986 to require reporting for qualified opportunity funds, to make modifications to opportunity zones, and for other purposes, all provisions. S. 2994, Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones or the IMPACT Act, to amend the Internal Revenue Code of 1986 to require information reporting with respect to the qualified opportunity zone tax incentives enacted by the 2017 tax reform legislation, to require public reports related to such tax incentives, and for other purposes, all provisions. Low-Income Housing Tax Credit, Middle-Income Housing Tax Credit, and Incentives for Housing Affordability and Infrastructure Development H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. Requested that any infrastructure bill include tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; and extend and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties. Legislative proposal, to amend the Internal Revenue Code of 1986 to permit certain contributions by governmental entities to be treated as contributions of capital and to exclude from gross income contributions of capital of a partnership. Energy H.R. 1865, Further Consolidated Appropriations Act, 2020 (became Public Law 116-94), Division Q -- Revenue Provisions, Taxpayer Certainty and Disaster Relief Act of 2019, Section 129: Energy efficient homes credit and Section 131: Energy efficient commercial buildings deduction. H.R. 4506, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2588, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Estate Tax Support making permanent the Estate Tax rules enacted as part of the Tax Cuts and Jobs Act of 2017. Tax Administration Letter to Treasury Department and IRS requesting a delay of the implementation of the 2019 Draft Form 1065 and Schedule K-1 by at least one year (until 2020) to allow for a full public review and comment process. Carried Interest H.R. 1735, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 781, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 1639, Ending the Carried Interest Loophole Act, to amend the Internal Revenue Code of 1986 to revise the treatment of partnership interests received in connection with the performance of services, and for other purposes, all provisions. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Issues related to tax reform including H.R. 1, Bill to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018 (bill formerly known as the Tax Cuts and Jobs Act), S. 1, an original bill to provide for reconciliation pursuant to title II of the concurrent resolution on the budget for fiscal year 2018, H.R. 1865, Further Consolidated Appropriations Act, 2020, and H.R. 5313 & S.2984, Multifamily Depreciation Parity Act of 2019.

Client expense: Not reported · Firm income: $50,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Depreciation Rules Requested Congress pass legislation to clarify that firms electing out of limits on business interest deductibility may depreciate multifamily buildings placed in service prior to 2018 over 30 years. H.R. 5313, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. S. 2984, Multifamily Depreciation Parity Act of 2019, to amend the Internal Revenue Code of 1986 to allow for certain residential rental property to be depreciated over a 30-year period, all provisions. Business Interest Deductibility Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-106089-18, RIN 1545-BO73, Limitation on Deduction for Business Interest Expense, issues pertaining to: (1) the interaction between the small business exception and the real estate trade or business election (as well as resulting impacts on the depreciation of multifamily buildings); and (2) the application of the REIT safe harbor to certain controlled partnerships. Opportunity Zones Department of the Treasury and Internal Revenue Service, 26 CFR Part 1, REG-120186-18, RIN 1545-BP04, Investing in Qualified Opportunity Funds. Note: This proposed rule, as well as proposed rule: Department of Treasury and Internal Revenue Service, 26 CFR Part 1, REG-115420-18, RIN 1545-BP03, Investing in Qualified Opportunity Funds, became a final regulation on December 19, 2019: Department of the Treasury and Internal Revenue Service, 26 CFR Part 1, TD 9889, RIN 1545-BP04, Investing in Qualified Opportunity Funds. Opportunity Zones: No bill introduced but support legislative change to reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone substantial improvement purposes. H.R. 2593, to require the Secretary of the Treasury to collect data and issue a report on the opportunity zone tax incentives enacted by the 2017 tax reform legislation, and for other purposes, all provisions. H.R. 4011, to amend the Internal Revenue Code of 1986 to require lead remediation for qualified opportunity zone property originally constructed before January 1, 1978. H.R. 5011, Opportunity Zone Accountability and Transparency Act, to amend the Internal Revenue Code of 1986 to require reporting by qualified opportunity funds, all provisions. S. 1344, to require the Secretary of the Treasury to collect data and issue a report on the opportunity zone tax incentives enacted by the 2017 tax reform legislation, and for other purposes, all provisions. S. 2787, Opportunity Zone Reporting and Reform Act, to amend the Internal Revenue Code of 1986 to require reporting for qualified opportunity funds, to make modifications to opportunity zones, and for other purposes, all provisions. S. 2994, Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones or the IMPACT Act, to amend the Internal Revenue Code of 1986 to require information reporting with respect to the qualified opportunity zone tax incentives enacted by the 2017 tax reform legislation, to require public reports related to such tax incentives, and for other purposes, all provisions. Low-Income Housing Tax Credit, Middle-Income Housing Tax Credit, and Incentives for Housing Affordability and Infrastructure Development H.R. 3077, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1703, Affordable Housing Credit Improvement Act of 2019, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to provide a credit for middle-income housing, and for other purposes, all provisions. Requested that any infrastructure bill include tax incentives to: expand the Low-Income Housing Tax Credit; enact the Middle-Income Housing Tax Credit; reduce the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes; repeal the Foreign Investment in Real Property Tax Act; extend the IRC Section 45L New Energy Efficient Home Credit; and extend and modify the IRC Section 179D Energy Efficient Commercial Buildings Deduction to facilitate investments in improving the utility performance of existing properties. Legislative proposal, to amend the Internal Revenue Code of 1986 to permit certain contributions by governmental entities to be treated as contributions of capital and to exclude from gross income contributions of capital of a partnership. Energy H.R. 1865, Further Consolidated Appropriations Act, 2020 (became Public Law 116-94), Division Q -- Revenue Provisions, Taxpayer Certainty and Disaster Relief Act of 2019, Section 129: Energy efficient homes credit and Section 131: Energy efficient commercial buildings deduction. H.R. 4506, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. H.R. 4646, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. S. 2588, Home Energy Savings Act, to amend the Internal Revenue Code of 1986 to extend and update the credit for nonbusiness energy property, all provisions. S. 2595, New Home Energy Efficiency Act, to amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit, all provisions. Draft legislation, Growing Renewable Energy and Efficiency Now Act of 2019, or the GREEN Act of 2019, to amend the Internal Revenue Code to promote green energy, Section 303: Energy efficient commercial buildings deduction and Section 304: Extension, increase, and modifications of new energy efficient home credit. Draft legislation, Energy Efficient Qualified Improvement Property Act of 2019, or the E-QuIP Act, to amend the Internal Revenue Code to allow 10-year straight line depreciation for energy efficient qualified improvement property, and for other purposes, all provisions. Estate Tax Support making permanent the Estate Tax rules enacted as part of the Tax Cuts and Jobs Act of 2017. Tax Administration Letter to Treasury Department and IRS requesting a delay of the implementation of the 2019 Draft Form 1065 and Schedule K-1 by at least one year (until 2020) to allow for a full public review and comment process. Carried Interest H.R. 1735, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 781, Carried Interest Fairness Act of 2019, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-through entities, all provisions. S. 1639, Ending the Carried Interest Loophole Act, to amend the Internal Revenue Code of 1986 to revise the treatment of partnership interests received in connection with the performance of services, and for other purposes, all provisions. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210, Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions.

Lobbied for technical corrections to the Tax Cuts and Jobs Act of 2017, specifically regarding clarifications to the definition of Qualified Improvement Property and the appropriate depreciation period applicable to such property, which was intended to be 15 years (H.R. 1869, S. 803). Lobbied for passage of S. 617, the Tax Extender and Disaster Relief Act of 2019. Lobbied for passage of H.R. 2210, the "Invest in America Act," to remove barriers to foreign investment in infrastructure projects created by the Foreign Investment in Real Property Tax Act (FIRPTA) of 1980. Lobbied for more favorable investments in energy-efficient improvements in commercial buildings. Lobbied for change in tax treatment of Contributions in Aid of Construction under IRC Section 118 (S. 2942). Lobbied for clarification regarding depreciation period of certain multifamily buildings (H.R. 5313)

Client expense: $267,016 · Firm income: Not reported

Government targets: Army, Dept of (Corps of Engineers), Energy, Dept of, Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of