MBA CRE Coalition Letter on Section 899

The undersigned organizations support the effort to pressure foreign governments to reform tax policies that unfairly target American businesses and their employees. The undersigned real estate organizations are concerned, however, that the retaliatory tax measures in the House-passed budget reconciliation bill, as currently drafted, could have significant negative, unintended consequences. These include higher mortgage rates, reduced housing supply, decreased investment in urban and rural communities, fewer jobs, and slower economic growth. We urge the Senate to revise proposed Section 899 to exempt non-controlling investments in U.S. real estate, regardless of whether those investment are made through equity or debt. Such an exemption is necessary to ensure U.S. taxpayers continue to have access to foreign capital for real 

estate investment.