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$2T Stimulus Bill a Win for Commercial Real Estate, Says NAIOP

The historic $2-trillion economic stimulus bill agreed upon by House and Senate leaders early Wednesday morning in response to the COVID-19 pandemic has a number of positive implications for commercial real estate, according to NAIOP analysis. Among them is a technical correction to the Qualified Improvement Property provision in the 2017 Tax Cuts and Jobs Act.

QIP is now available for immediate expensing, rather than subject to the 39-year depreciation period that made it into the TCJA through a drafting error.

“This correction is a top NAIOP federal priority and its inclusion is a result of our efforts over the last two years,” NAIOP president Thomas J. Bisacquino said in a note to association members.

Other provisions of interest to CRE in the $2-trillion stimulus bill, according to NAIOP:

• Allows 5-year carryback of net operating losses (NOL) for non-REIT businesses for 2018, 2019 and 2020.
• Increases the limitation on deductible business interest from 30% to 50% of EBITDA (earnings before interest, taxes, depreciation, amortization) for 2019 and 2020.
• Excludes from income the cancellation of debt related to new, emergency small business loans.
• Provides small businesses, “many of whom are your tenants,” with $367 billion in loan assistance so they can keep employees on payrolls and continue paying obligations.

Additionally, says NAIOP, the legislation would provide direct payments to many individuals and families, extend unemployment insurance and shore up social safety net programs.


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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Economy
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