Opportunity Zones Improvement, Transparency, and Extension Act

"Carried Interest Fairness Act" H.R. 1068 and carried interest reform, including changes in holding period Energy efficiency and clean energy tax incentives, including the E-QUIP Act (H.R. 2346) and Inflation Reduction Act Like-Kind Exchanges (Sec. 1031) Completed contract method of accounting and condominium construction (Section 460(e) (H.R. 4061) FIRPTA reform and Parity for Non-Traded REITS Act (H.R. 3123) Net investment income tax and SECA liability Cost recovery, residential rental property and nonresidential property, including S.4012 and H.R. 7229 Low-income housing tax credit Proposed and final tax regulations under sections 897 and 892 REIT rules, including investments in related parties (H.R. 840) Cancellation of Indebtedness income (section 108) Capital gains tax rate State and local tax deduction 20% deduction for pass-through business income (section 199A) and tax rules on pass-through income, including Senator Wyden pass-through reform discussion draft Taxing appreciated capital gains at death Opportunity Zone reform, reporting, and deadline extensions; including S. 4065 and H.R. 7467 Estate tax valuation discounts and rules for grantor trusts Revitalizing Downtowns Act (S. 2511 and H.R. 4759) Passive Foreign Investment Company proposed tax regulations (REG-118250-20) Taxing unrealized gains annually - Administration's minimum tax proposal and Chairman Wyden proposal TCJA Permanency Act (HR 89) Business interest deductibility and section 163(j) Active loss limitation and section 461(l)

Client expense: $913,660 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Internal Revenue Service (IRS), SENATE, Transportation, Dept of (DOT), Treasury, Dept of, White House Office

Issues related to IRC section 1400Z, S.4065 and H.R. 7467.

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

IRC Section 108 Cancellation of Indebtedness income- no bill S. 480/HR 1381 Main Street Tax Certainty Act - All H.R. 840 Retail Revitalization Act - All H.R. 2346 Energy Efficient Qualified Improvement Property Act of 2021 - All S. 1598/H.R. 1068 Carried Interest Fairness Act - All S. 2617 Ending the Carried Interest Loophole Act - All S 1997 To provide that certain contributions by government entities are treated as contributions to capital - All S. 2511 / H.R.4759 Revitalizing Downtowns Act - All Wyden Pass-Through Reform - no bill, discussion draft - All S. 4065/H.R. 7467 Opportunity Zones Improvement, Transparency and Extension Act - All S. 1077/H.R. 5371 Permanently Preserving America's Investment in Manufacturing Act - ALL

Client expense: $400,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Focused on Opportunity Zone issues, including HR 1740, To Designate all of Puerto Rico an Opportunity Zone, HR7467; Opportunity Zones Improvement, Transparency and Extension Act; HR 7183, The Rust to Revitalization Act; and S. 4065 to modify the rules relating to qualified opportunity zones.

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Inflation Reduction Act of 2022 (version released July 27, 2022 as a draft Senate amendment in a nature of a substitute to H.R. 5376), Title 1 -- Committee on Finance, Subtitle A -- Deficit Reduction, Part 1 -- Corporate Tax Reform, Section 10101: Corporate Alternative Minimum Tax; and Part 2 -- Closing the Carried Interest Loophole, Section 10201: Modification of Rules for Partnership Interests Held in Connection with the Performance of Services; Part 3 -- Clean Energy and Efficiency Incentives for Individuals, Section 13303: Energy Efficient Commercial Buildings Deduction and Section 13304: Extension, Increase, and Modifications of New Energy Efficient Home Credit. Build Back Better / Reconciliation Legislation Revenue Raisers Oppose inclusion of proposals in any reconciliation bill to: (1) expand the 3.8 percent net investment income tax to active income; (2) expand and extend a provision limiting the use of excess business losses by non-corporate taxpayers; or (3) modify the tax treatment of carried interest. Carried interest: NMHC believes that carried interest should be treated as a long-term capital gain if the underlying asset is held for at least one year. Like-Kind exchanges: NMHC supports retaining current law Low-Income Housing Tax Credit and Middle-Income Housing Tax Credit S. 2820, Decent, Affordable, Safe Housing for All Act (DASH Act), to provide rental housing vouchers for the homeless, and for other purposes, Title I -- Housing Assistance, Subtitle A -- General Housing Assistance, Section 111: Rental Vouchers for the Homeless, portion of section pertaining to source of income rules; Title II -- Revenue Provisions: Sections 201-214 pertaining to the Low-Income Housing Tax Credit, Section 215 establishing a renter's tax credit, and Section 216 establishing a middle-income housing tax credit. Draft legislation, to amend the Internal Revenue Code of 1986 to establish a Workforce Housing Tax Credit, and for other purposes, all provisions. H.R. 2573, Affordable Housing Credit Improvement Act of 2021, to reform the low-income housing credit, and for other purposes, all provisions. S. 1136, Affordable Housing Credit Improvement Act of 2021, to reform the low-income housing credit, and for other purposes, all provisions. Extension of Expired Low-Income Housing Tax Credit Allocation Authority: NMHC supports extending the 12.5 increase in LIHTC credit authority available in 2018-2021. H.R. 7078, LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence (LIFELINE) Act, to amend title VI of the Social Security Act to allow coronavirus State and local fiscal recovery funds to be used for low-income housing credit projects, all provisions. S. 4181, LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence (LIFELINE) Act, to amend title VI of the Social Security Act to allow coronavirus State and local fiscal recovery funds to be used for low-income housing credit projects, all provisions. Monitored possible issuance of final rule on Low-Income Housing Tax Credit Average Income Test: Department of the Treasury, Internal Revenue Service, 26 CFR Part 1, REG-119890-18, RIN 1454 BO92, Section 42, Low-Income Housing Credit Average Income Test Regulations. Issues, including FHFA's duty to serve regulatory activities, pertaining to the preservation of LIHTC properties at the end of the 15-year compliance period: nonprofit partners ability to exercise right of first refusal, and the issue of qualified contracts. Monitored mitigation of potential negative impact of OECD Pillar 2 global minimum tax on Low-Income Housing Tax Credit. Bonus Depreciation Support extension of 100 bonus depreciation that expires at the end of 2022. Rehabilitation Tax Credit H.R. 1483, Revitalizing Economies, Housing, and Businesses Act of 2021 or the REHAB Act of 2021, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Federal tax policies impacting the conversion of property (e.g., conversion of office buildings into housing) H.R. 4759, Revitalizing Downtowns Act, to amend the Internal Revenue Code of 1986 to provide an investment credit for the conversion of office buildings into other uses, all provisions. S. 2511, Revitalizing Downtowns Act, to amend the Internal Revenue Code of 1986 to provide an investment credit for the conversion of office buildings into other uses, all provisions. Made proposal to enable jurisdictions that reduce zoning barriers to use tax-exempt bonds to encourage repurposing of non-residential properties into housing. Opportunity Zones H.R. 7467, Opportunity Zones Transparency, Extension, and Improvement Act, to amend the Internal Revenue Code of 1986 to modify the rules relating to qualified opportunity zones, and for other purposes, all provisions. S. 4065, Opportunity Zones Transparency, Extension, and Improvement Act, to amend the Internal Revenue Code of 1986 to modify the rules relating to qualified opportunity zones, and for other purposes, all provisions. Support reducing the basis increase necessary to qualify a multifamily rehabilitation project for Opportunity Zone purposes. Energy Tax Incentives New Energy Efficient Homes Credit (IRC Section 45L) NMHC supported making permanent the New Energy Efficient Homes Credit as it existed prior to modification and extension as part of the Inflation Reduction Act. Energy Efficient Commercial Buildings Deduction (IRC Section 179D): NMHC supported expansion of the Energy Efficient Commercial Buildings Deduction to encourage retrofits of existing property, which would help spur investment in energy efficient improvements in older buildings. The Inflation Reduction Act addressed this issue. Taxation of Pass-Through Entities Senator Wyden Pass-Through Reform Discussion Draft, all provisions.

Issues relating to economic development of distressed communities, including IRC section 1400Z, S.2994, H.R. 7183, S.4065, and H.R. 7467.

Client expense: $110,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, White House Office

Issues relating to economic development of distressed communities, including IRC section 1400Z, S.2994, H.R.7183, S.4065, and H.R.7467. Issues relating to non-compete agreements and their effects on economic dynamism, including S.483 and H.R.1367. Issues relating to demographic trends, labor force issues and the availability of human capital, including immigration and H.R.4681. Issues relating to inclusive wealth building and retirement security. Issues relating to increasing technology and innovation, including H.R.4346.

Client expense: $110,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, White House Office

"Carried Interest Fairness Act" H.R. 1068 and carried interest reform, including changes in holding period Energy efficiency and clean energy tax incentives, including the E-QUIP Act (H.R. 2346) and Inflation Reduction Act Like-Kind Exchanges (Sec. 1031) Completed contract method of accounting and condominium construction (Section 460(e) (H.R. 4061) FIRPTA reform and Parity for Non-Traded REITS Act (H.R. 3123) Net investment income tax and SECA liability Cost recovery, residential rental property and nonresidential property, including S.4012 and H.R. 7229 Low-income housing tax credit Contributions in Aid of Construction (Sec. 118) REIT rules, including investments in related parties (H.R. 840) Cancellation of Indebtedness income (section 108) Employee retention tax credit Capital gains tax rate State and local tax deduction 20% deduction for pass-through business income (section 199A) and tax rules on pass-through income, including Senator Wyden pass-through reform discussion draft Taxing appreciated capital gains at death Opportunity Zone reform, reporting, and deadline extensions; including S. 4065 and H.R. 7467 Estate tax valuation discounts and rules for grantor trusts Portfolio interest exemption and inbound real estate investment Electric vehicle charging infrastructure tax incentives Revitalizing Downtowns Act (S. 2511 and H.R. 4759) Passive Foreign Investment Company proposed tax regulations (REG-118250-20) Taxing unrealized gains annually - Administration's minimum tax proposal and Chairman Wyden proposal TCJA Permanency Act (HR 89) Business interest deductibility and section 163(j) Active loss limitation and section 461(l)

Client expense: $1,278,075 · Firm income: Not reported

Capital gains tax rate - no bill Like-Kind Exchanges - maintaining current tax treatment of IRC Section 1031 - no bill IRC Section 108 Cancellation of Indebtedness income- no bill IRC Section 1014 - maintaining stepped-up basis for inherited assets - no bill S. 480/HR 1381 Main Street Tax Certainty Act - All H.R. 840 Retail Revitalization Act - All H.R. 2346 Energy Efficient Qualified Improvement Property Act of 2021 - All S. 1598/H.R. 1068 Carried Interest Fairness Act - All S. 2617 Ending the Carried Interest Loophole Act - All S 1997 To provide that certain contributions by government entities are treated as contributions to capital - All S. 2511 / H.R.4759 Revitalizing Downtowns Act - All H.R. 6161/S.3625 The Employee Retention Tax Credit Reinstatement Act - All Wyden Pass-Through Reform - no bill, discussion draft - All Wyden capital gains mark to market proposals - no bill, discussion draft - All S. 4065/H.R. 7467 Opportunity Zones Improvement, Transparency and Extension Act - All Potential legislation on state sales tax collection and simplification post-Wayfair decision - no bill. S. 1077/H.R. 5371 Permanently Preserving America's Investment in Manufacturing Act - ALL H.R. 5376 Inflation Reduction Act of 2022. Proposals to modify the treatment of carried interest.

Client expense: $230,000 · Firm income: Not reported

Issues related to IRC section 1400Z (S.4065 and H.R. 7467).

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Issues relating to economic development of distressed communities, including IRC section 1400Z, S.2994, H.R. 7183, S.4065, and H.R. 7467.

Client expense: $160,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Issues relating to economic development of distressed communities, including IRC section 1400Z, S.2994, H.R.7183, S.4065, and H.R.7467. Issues relating to non-compete agreements and their effects on economic dynamism, including S.483 and H.R.1367. Issues relating to demographic trends, labor force issues and the availability of human capital, including immigration and H.R.4681. Issues relating to inclusive wealth building and retirement security.

Client expense: $160,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, White House Office

Focused on Opportunity Zone issues, including HR 1740, To Designate all of Puerto Rico an Opportunity Zone, HR7467; Opportunity Zones Improvement, Transparency and Extension Act; HR 7183, The Rust to Revitalization Act; and S. 4065 to modify the rules relating to qualified opportunity zones.

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Focused on Opportunity Zone issues, including HR 1740, To Designate all of Puerto Rico an Opportunity Zone, HR7467; Opportunity Zones Improvement, Transparency and Extension Act; HR 7183, The Rust to Revitalization Act; and S. 4065 to modify the rules relating to qualified opportunity zones.

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Issues related to IRC section 1400Z (S.4065 and H.R. 7467).

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Capital gains tax rate - no bill Like-Kind Exchanges - maintaining current tax treatment of IRC Section 1031 - no bill IRC Section 108 Cancellation of Indebtedness income- no bill IRC Section 1014 - maintaining stepped-up basis for inherited assets - no bill S. 480/HR 1381 Main Street Tax Certainty Act - All H.R. 840 Retail Revitalization Act - All H.R. 2346 Energy Efficient Qualified Improvement Property Act of 2021 - All S. 1598/H.R. 1068 Carried Interest Fairness Act - All S. 2617 Ending the Carried Interest Loophole Act - All S 1997 To provide that certain contributions by government entities are treated as contributions to capital - All S. 2511 / H.R.4759 Revitalizing Downtowns Act - All H.R. 6161/S.3625 The Employee Retention Tax Credit Reinstatement Act - All Wyden Pass-Through Reform - no bill, discussion draft - All Wyden capital gains mark to market proposals - no bill, discussion draft - All S. 4065/H.R. 7467 Opportunity Zones Improvement, Transparency and Extension Act - All Potential legislation on state sales tax collection and simplification post-Wayfair decision - no bill.

Client expense: $300,000 · Firm income: Not reported

"Carried Interest Fairness Act" H.R. 1068 and carried interest reform, including changes in holding period Energy efficiency and clean energy tax incentives, including the E-QUIP Act (H.R. 2346) Like-Kind Exchanges (Sec. 1031) Completed contract method of accounting and condominium construction (Section 460(e) (H.R. 4061) FIRPTA reform and Parity for Non-Traded REITS Act (H.R. 3123) Net investment income tax and SECA liability Cost recovery, residential rental property and nonresidential property, including S.4012 and H.R. 7229 Low-income housing tax credit Contributions in Aid of Construction (Sec. 118) REIT rules, including investments in related parties (H.R. 840) Cancellation of Indebtedness income (section 108) Employee retention tax credit Capital gains tax rate State and local tax deduction 20% deduction for pass-through business income (section 199A) and tax rules on pass-through income, including Senator Wyden pass-through reform discussion draft Taxing appreciated capital gains at death Opportunity Zone reform, reporting, and deadline extensions; including S. 4065 and H.R. 7467 Estate tax valuation discounts and rules for grantor trusts Portfolio interest exemption and inbound real estate investment Electric vehicle charging infrastructure tax incentives Revitalizing Downtowns Act (S. 2511 and H.R. 4759) Passive Foreign Investment Company proposed tax regulations (REG-118250-20) Taxing unrealized gains annually - Administration's minimum tax proposal and Chairman Wyden proposal

Client expense: $1,039,338 · Firm income: Not reported

"Carried Interest Fairness Act" H.R. 1068 and carried interest reform, including changes in holding period Energy efficiency and clean energy tax incentives, including the E-QUIP Act (H.R. 2346) Like-Kind Exchanges (Sec. 1031) Completed contract method of accounting and condominium construction (Section 460(e) (H.R. 4061) FIRPTA reform and Parity for Non-Traded REITS Act (H.R. 3123) Net investment income tax and SECA liability Cost recovery, residential rental property and nonresidential property, including S.4012 and H.R. 7229 Low-income housing tax credit Contributions in Aid of Construction (Sec. 118) REIT rules, including investments in related parties (H.R. 840) Cancellation of Indebtedness income (section 108) Employee retention tax credit Capital gains tax rate State and local tax deduction 20% deduction for pass-through business income (section 199A) and tax rules on pass-through income Taxing appreciated capital gains at death Opportunity Zone reform, reporting, and deadline extensions; including S. 4065 and H.R. 7467 Estate tax valuation discounts and rules for grantor trusts Portfolio interest exemption and inbound real estate investment Electric vehicle charging infrastructure tax incentives Revitalizing Downtowns Act (S. 2511 and H.R. 4759) Passive Foreign Investment Company tax regulations Taxing unrealized gains annually - Administration's minimum tax proposal and Chairman Wyden proposal

Client expense: $1,126,000 · Firm income: Not reported

Focused on Opportunity Zone issues, including HR 1740, To Designate all of Puerto Rico an Opportunity Zone, HR7467; Opportunity Zones Improvement, Transparency and Extension Act; HR 7183, The Rust to Revitalization Act; and S. 4065 to modify the rules relating to qualified opportunity zones.

Client expense: Not reported · Firm income: $40,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Issues related to IRC section 1400Z (S.4065 and H.R. 7467).

Client expense: Not reported · Firm income: $30,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE