Author: Trey Jackson

White House Reviewing Final OZ Tax Regulations; Senate Legislation Introduced on Reporting Requirements

Posted on by Trey Jackson

white-house-bluish_x475W

The White House’s Office of Management and Budget (OMB) is reviewing a set of highly anticipated final rules for the Opportunity Zones program created by the 2017 Tax Cuts and Jobs Act, according to a Dec. 6 OMB notice.  The rules will address requirements of qualified opportunity funds that invest in opportunity zones (OZs).

  • OZ investors are looking for clarifications on a number of open issues that will help qualified opportunity funds drive economic development in economically distressed communities nationwide.
  • Treasury released its first set of proposed OZ rules in Oct. 2018, followed by expanded guidance in April 2019.  The Treasury rulemakings have reduced investor uncertainty and encouraged capital formation, job creation and productive real estate.  However, certain questions remain that warrant additional guidance, such as whether an existing owner can retain a carried interest when selling property to a related Opportunity Fund.
  • The Real Estate Roundtable on July 1, 2019 submitted recommended clarifications for final OZ tax regulations, which may be issued by the Treasury Department before the end of this year (Roundtable Comment letter, July 1).  The Roundtable also submitted prior letters on OZ tax incentives in June 2018 and December 2018.)
  • In Congress, GOP senators on Dec. 6 introduced a bill that would expand information reporting requirements for OZ investments, including requiring investors to report the number of full-time workers employed by opportunity zone projects. (BGov, Dec. 8 and Sen. Marco Rubio news release, Dec. 9)
  • The Senate’s “Improving and Reinstating the Monitoring, Prevention, Accountability, Certification, and Transparency Provisions of Opportunity Zones (IMPACT) Act” would “… help show communities and investors that the initiative is working, as well as help root out any fraud or abuse,” according to Sen. Tim Scott (R-SC), the lead sponsor of the bill.  (The Hill, Dec. 6)
  • Democratic lawmakers in the Senate and House have also recently proposed measures that would require more reporting requirements about Opportunity Zone investments – as well as reform the tax incentive, and formally investigate recent allegations of wrongdoing related to the program. (Roundtable Weekly, Nov. 8)
  • The Roundtable has strongly supported the Opportunity Zone tax incentives since their enactment as a potential powerful catalyst for transformative real estate investment in economically struggling parts of the country.  (GlobeSt.com interview with Roundtable President and CEO Jeffrey DeBoer and Roundtable SVP and Counsel Ryan McCormick –July 16, 2018).

Through its Tax Policy Advisory Committee and Opportunity Zone Working Group, The Roundtable will continue to contribute to the implementation and oversight of the Opportunity Zone incentives, offering constructive comments and recommendations to Members of Congress and Treasury officials. 

#  #  #

IRS Delays and Modifies Several New Partnership Tax Reporting Requirements

Posted on by Trey Jackson

treasury-department-building_x475w

Responding to concerns raised by The Real Estate Roundtable and others, the Internal Revenue Service (IRS) on Dec. 9 issued Notice 2019-66 modifying and postponing several proposed changes to partnership tax reporting requirements.  (Bloomberg Tax, Dec. 9)

The Real Estate Roundtable on Nov. 18 sent a letter to Treasury and the IRS urging the government to postpone certain reporting requirements in the new partnership tax return forms for 2019.  The letter encouraged the IRS to seek formal input from stakeholders regarding specific items.  The Roundtable noted in the letter that the reporting requirements as originally proposed were generating significant taxpayer uncertainty; could lead taxpayers to adopt inconsistent approaches to computing information; and may result in more harm than good.  (Roundtable letter, Nov. 18)

Twelve other national real estate organizations sent a joint letter on Nov. 22 seeking a delay in the requirements and requesting a comprehensive comment process

This week’s IRS Notice makes the following changes:

  • The requirement to report partners’ shares of partnership capital on the tax basis method is delayed until 2020 (for 2019, capital accounts will be reported consistent with the reporting requirements in 2018);
  • The requirement for partnerships to report to partners information about separate “Section 465 at-risk activities” is delayed until 2020;
  • The Notice clarifies the requirement for partnerships and other persons to report a partner’s share of “net unrecognized Section 704(c) gain or loss” by defining this term for purposes of the reporting requirement.
  • It exempts publicly traded partnerships from the requirement to report their partners’ shares of net unrecognized Section 704(c) gain or loss; and
  • It also provides relief from certain reporting penalties imposed under the tax code for taxpayer who follow the Notice.  These penalties include the failure to furnish correct payee statements; the failure to file a partnership return that shows required information; and the failure to furnish information required on a Schedule K-1.

Significant changes were made to the partnership audit rules in 2015, in response to widespread government concerns related to the challenges of administering partnership tax rules. The Roundtable and members of its Tax Policy Advisory Committee (TPAC) have actively contributed to the development and modification of partnership audit reform legislation.  (Roundtable Weekly, Jan. 5, 2018 and October 11, 2019)

TPAC will continue to engage IRS and Treasury officials about timely stakeholder concerns with regulatory issues affecting real estate and the economy.

#  # #

The Roundtable Recognized as Leading Industry “Influencer” by Real Estate Forum Magazine

Posted on by Trey Jackson

The Real Estate Roundtable is featured as one of the industry’s “Influencers in Marketing and Communications” in the November / December issue of Real Estate Forum magazine published this week.  

  • Managing Editor Erika Morphy offers her perspective on the 24 individuals, 10 marketing organizations, 7 company teams and 1 trade group (The Roundtable) profiled in the issue.  “We like to think these lists are special to the industry.  Why influencers at all? That is simple: because even though commercial real estate is all about physical buildings and the trends that govern their supply and demand, it also is very much a relationship-oriented space. Who you know, who you’ve heard about and who you would like to know is the name of the game.” Morphy writes. (Digital issue and GlobeSt. article, Dec. 3)
     
  • The Real Estate Forum article notes that “The Roundtable’s leaders seek to ensure a cohesive industry voice is heard by government officials and the public, concerning real estate’s important role in the global economy.”  The Forum report also mentions The Roundtable’s successes related to the Tax Cuts and Job Acts of 2017 and the 20% deduction for qualified pass-through businesses – in addition to its continued work on Opportunity Zones with the Treasury Department and IRS.
     
  • The report adds, “Under the leadership of Roundtable chair, Debra Cafaro, the organization is also committed to building an industry network that reflects the diversity of the membership.”
     
  • Roundtable President and CEO Jeffrey DeBoer commented on the recognition.  “We are proud to be named as a leading industry Influencer by Real Estate Forum.  The Roundtable continually strives to clearly communicate our views on policy issues affecting CRE to our membership, policymakers and throughout the industry.  Our communications approach reflects how we present the industry’s positions to lawmakers in person – in a balanced, nonpartisan way, supported by detailed analysis on legislative and regulatory proposals.” 

The Roundtable will debut its 2020 National Policy Agenda publication during its State of the Industry Meeting on Jan. 28-29 in Washington, DC. 

# # # 

HUD Requests Stakeholder Comments on Barriers to Affordable Housing

Posted on by Trey Jackson

[Left to right: Roundtable Chair Debra Cafaro (Ventas, Inc), HUD Secretary Ben Carson and Roundtable President and CEO Jeffrey DeBoer discuss affordable housing issues during The Roundtable’s Fall 2019 Meeting.]

The U.S. Department of Housing and Urban Development (HUD) on Nov. 22 published a Request for Information (RFI) seeking public comment on Federal, State, local, and Tribal laws, regulations, land use requirements, and administrative practices that may pose barriers to affordable housing development.

  • HUD is also asking stakeholders for their recommendations about innovative practices that promote increased housing supply.  (HUD news release, Nov. 26 and HousingWire, Nov. 27)
  • The RFI is part of an effort undertaken by HUD Secretary Ben Carson as chair of the White House Council on Eliminating Regulatory Barriers to Affordable Housing.  The Council’s eight Federal member agencies are tasked with engaging governments at all levels and private-sector stakeholders on ways to increase the housing supply and access to affordable housing.  (Roundtable Weekly, June 28)
  • HUD’s outreach to stakeholders is a result of President Trump’s June 25 Executive Order, “Establishing a White House Council on Eliminating Regulatory Barriers to Affordable Housing.”  State and local law barriers identified in the Order include overly restrictive zoning and environmental laws, rent regulations, excessive energy and water efficiency mandates, impediments to higher-density projects, time-consuming permit procedures, complex labor requirements, and inordinate development impact fees. (White House Fact Sheet, June 25)
  • Responses to HUD’s RFI are due by Jan. 21, 2020.  The Roundtable will submit comments after finalizing a multi-faceted housing availability and affordability strategy recommending policies that encourage:

• State and local governments to adopt and implement Yes in My Backyard (“YIMBY”) land-use policies such as high-density zoning and expanding by-right multifamily zoned areas, to entitle affordable housing projects;

• Development of low-income and workforce housing units as a priority when the U.S. government disposes under-utilized and surplus federal properties;

• Construction of manufactured housing – the only form of housing regulated by a Federal building code that includes standards for health, safety, and energy efficiency – as a gateway that opens the door for homeownership for millions of families;

• An assessment of how short-term rental platforms (like Air BnB and Vrbo) may reduce supplies of units otherwise available for long-term housing;

• Mortgage underwriting standards that reduce barriers for first-time buyers with student loan debt to also qualify for federally-backed FHA loans geared toward low- and moderate-income borrowers;    

• Increased support for HUD’s Section 8 voucher program to assist very low-income, elderly, and disabled Americans to afford housing in the private market; and

• Modernizing the role of Fannie Mae and Freddie Mac through GSE reform, to focus their mission on providing liquidity in mortgage markets geared toward low-income and middle-class home ownership.

On November 1, Roundtable President and CEO Jeffrey D. DeBoer raised these priorities in a housing affordability summit at the White House with HUD Secretary Carson and other industry leaders.  DeBoer’s comments followed on the heels of Secretary Carson’s remarks to The Roundtable several days prior during its 2019 Fall Meeting.  (Roundtable Weekly, November 1, 2019).    

Affordable housing will be a focus of discussion during The Roundtable’s Jan. 28-29 State of the Industry Meeting in Washington, DC.

#  #  # 

Tax Measures and TRIA Among Year-End Policy Rush

Posted on by Trey Jackson

Capitol Hill
Congress faces a Dec. 20 deadline to fund the government or risk a shutdown as the impeachment process continues in the House, with a likely trial in the Senate beginning in January.

  • Funding for the National Flood Insurance and EB-5 investor programs are currently operating under a four-week spending bill signed by President Trump on Nov. 21.  Without a spending bill or a “Continuing Resolution” (CR) extending current funding, the programs will shutdown on Dec. 21 until Congress reaches a resolution. (Roundtable Weekly, Nov. 22)
  • Several legislative measures – including an end-of-year tax policy bill and reauthorization of the Terrorism Risk Insurance Act (TRIA) – may compete for inclusion in a must-pass “omnibus” spending package. Yet lawmakers may not have enough time to complete fiscal 2020 appropriations before current funding runs out in two weeks.  Another CR is a possibility before Congress breaks for the holiday.
  • The contentious issue of appropriating Department of Homeland Security (DHS) funds for a wall on the border with Mexico remains a sticking point in negotiations. This same issue led to a historic, 35-day government shutdown from Dec. 22, 2018 to Jan. 25, 2019.
  • This year, the Trump Administration has requested $8.6 billion for Fiscal Year 2020 to build the wall – and an additional $3.6 billion to restore military base funding that was previously transferred toward partial wall construction.  An administration official said President Trump will not sign any nondefense bill until funding for DHS and a border wall are resolved.  (CQ, Dec. 4)
  • Among the legislative measures of importance to commercial real estate that may be included in a year-end omnibus are tax extenders and technical corrections.
  • Negotiations on a tax package and extenders have been difficult, according to Senate Finance Chairman Chuck Grassley (R-IA). “It’s different this year from other years,” he said. (Politico, Dec. 5)
  • House Ways and Means Committee Chairman Richie Neal (D-MA) said yesterday that some technical corrections to the 2017 tax overhaul law could become part of a year-end tax bill.  “I’m interested in some technical corrections,” Neal said, adding that they could include a fix to an error that prevents restaurants and retailers from immediately expensing the cost of interior renovations.  (BGov Tax, Dec. 5)
  • A top legislative priority for CRE that is also outstanding is a seven-year TRIA reauthorization, which passed the House on Nov. 18 (H.R. 4634) as the Senate Banking Committee advanced a similar bill (S. 2877) on Nov. 20.  (Roundtable Weekly, Nov. 22)
  • The Real Estate Roundtable is working with its partners in the Coalition to Insure Against Terrorism (CIAT) to urge Senators to include the TRIA reauthorization in a possible year-end spending package.  CIAT sent a letter this week to all Senators urging them to co-sponsor S. 2877 and secure its passage before the end of 2019. (CIAT Letter, Dec. 2)
  • The Roundtable and its CIAT partners continue to meet with Senate offices to encourage increased support for S. 2877. Sen. Thom Tillis (R-NC) is the lead sponsor, with 17 bipartisan cosponsors.
  • As Congress attempts to juggle many legislative priorities – including an updated version of a trade agreement with Mexico and Canada (USMCA) and a bill on prescription drug costs – the pressure to pass multiple appropriations bills funding government agencies may lead to a Continuing Resolution extending current funding.

House Majority Leader Steny Hoyer (D-MD) told reporters this week, “I don’t want to contemplate having bills pushed over [into 2020] because we can’t get agreement.”  (CQ, Dec. 4)

#  #  # 

Roundtable Submits Comments to House Climate Crisis Committee; House Democrats Unveil Green Energy Tax Draft

Posted on by Trey Jackson

Logo House Select Commtt Climate x485W edit

The Roundtable submitted energy and climate policy recommendations to the House Select Committee on the Climate Crisis on Thursday, while members of the House Ways and Means Committee unveiled a draft legislative package of more than 20 energy tax incentives – including incentives to promote commercial and residential building energy efficiency.  

The Roundtable’s climate letter submitted Nov. 21 responds to a request for information from the Select Committee. This panel has no authority to write legislation but is authorized to study climate change and issue legislative policy recommendations (expected by March 31, 2020).

In its study and review of climate policy recommendations, the Select Committee has held a series of hearings featuring various stakeholders – including one focused on “Cleaner, Stronger Buildings.”  (Roundtable Weekly, October 25, 2019) .

The Roundtable’s comments to the Select Committee highlighted the priorities advocated by its Sustainability Policy Advisory Committee (SPAC) to:       

  • Improve the model building energy codes process by enacting the Portman-Shaheen Energy Savings and Industrial Competitiveness (ESIC) Act. (Roundtable Weekly, September 27, 2019)
     
  • Enhance EPA’s voluntary ENERGY STAR incentive programs for both commercial buildings and tenants.
  • Improve the quality and reliability of the national data collected by the federal Commercial Building Energy Consumption Survey.
  • Create meaningful accelerated depreciation periods to encourage investments in high performance equipment to retrofit existing commercial and multifamily buildings. (Roundtable Weekly, May 10, 2019)
  • Foster public-private partnerships to finance safety and resiliency improvements to the electricity grid, the natural gas pipeline network, and other energy infrastructure assets.

Meanwhile, a discussion draft of the Growing Renewable Energy and Efficiency Now (GREEN) Act was released Nov. 19 by the chairman of the House Ways and Means Subcommittee on Select Revenue Measures – Rep. Mike Thompson (D-CA). 

The GREEN Act would extend and revise a number of expired tax incentives, including provisions aimed at encouraging taxpayers to improve the energy efficiency of homes and commercial buildings. Specifically, the discussion draft includes:

  • An updated and enhanced deduction for capital expenditures on energy-efficient commercial building property (section 179D)
  • An expanded tax credit for the developers of new, energy-efficient homes (section 45L)
  • A modified tax credit for energy-efficient improvements to existing homes (section 25C)

Under the bill, the revised tax incentives would be available through 2024. Following release of the draft legislation, House Ways and Means Committee Chairman Richie Neal (D-MA) stated, “The climate crisis requires bold action, and I’m pleased that we’re using the legislative tools at Ways and Means’ disposal to create green jobs, reduce carbon emissions, and help heal our planet.” We look forward to hearing from stakeholders to ensure this bill is effective in helping improve energy efficiency and eliminating carbon emissions.”

Prospects for passing the GREEN Act are unclear as it is a Democratic initiative that currently lacks Republican support. 

Additionally, The Roundtable and coalition partners continue to lay the research and data foundation for a new tax incentive that would provide accelerated depreciation for high performance, HVAC, lighting, windows, and other equipment to retrofit existing commercial and multifamily buildings, known as “E-QUIP.” (See Roundtable Weekly, May 10, 2019).  The coalition’s objective is for bipartisan introduction of an E-QUIP bill in early 2020.

The Roundtable’s Tax Policy Advisory Committee (TPAC) plans to analyze the proposed measures and respond to any eventual energy tax legislation that may be introduced in the New Year.

#  #  #

CRE Execs Report Solid Q4 Market Fundamentals Ease Concerns Over Economic Uncertainty and Geopolitics

Posted on by Trey Jackson

Jeffrey DeBoer, President and CEO, The Real Estate Roundtable

Commercial real estate executives report solid fundamentals are countering concerns about economic uncertainty and geopolitics, maintaining an optimistic outlook for market conditions in 2020, according to The Real Estate Roundtable’s 2019 Q4 Economic Sentiment Index released today. 

  • The Q4 Sentiment Index dropped one point from the previous quarter to register a score of 49, which shows a positive view regarding the U.S. economy and real estate market conditions. The Overall Economic Sentiment Index is scored on a scale of 1 to 100 by averaging Current and Future Indices and a score of approximately 50 is viewed as positive.
  • For Q4, the Current-Conditions Index of 53 remains the same as the previous quarter. The Q4 Future-Conditions Index of 45 decreased three points from Q3.  The Overall Sentiment Index has registered between 49 and 77 every quarter since Q3 2009 – except for Q1 2019 (45 score) and Q4 2016 (48 score).
  • “Our Q4 Sentiment Index shows that macro real estate markets remain fundamentally sound and reasonably leveraged, with balanced supply and demand,” said Real Estate Roundtable President and CEO Jeffrey DeBoer (above).  “The markets continue to benefit from business and consumer spending, encouraged by low unemployment, rising wages and low energy prices.”

The report’s Topline Findings include:

  • The Real Estate Roundtable Q4 2019 Economic Sentiment Index registered a score of 49 – a one-point decrease from the previous quarter. Survey participants remain confident in stable market fundamentals, but are concerned about recession talk, troubled international markets and politics.  
  • Sixty-two percent of Q4 survey respondents believe markets conditions will be about the same or better in 2020.  Approximately 82% of respondents see today’s market as about the same or better compared to the same time last year. 
     
  • More than 65% of respondents anticipate asset values to maintain their current level or be somewhat higher going into 2020.  Additionally, half also suggested asset values increased over the past year.  Respondents consistently suggested the number of buyers for assets was decreasing, a factor which is creating challenging selling and buying circumstances. 
     
  • Most respondents feel debt and equity capital are readily available for quality investments.  The availability of capital and refinancing opportunities are offsetting a decline in buyers/investors in some markets.

DeBoer added, “Real estate leaders cautiously await the outcome of several unpredictable influences on the global and domestic economies.  Despite the uncertainty, U.S. real estate markets have shown consistent stability, which positions them well to withstand potential economic gyrations in the future.”  He also said, “Washington policymakers need to keep their focus on policies that encourage long-term job creation and support economic growth in local communities.”

Data for the Q4 survey was gathered in October by Chicago-based FPL Associates on The Roundtable’s behalf.  For the full survey report, visit www.rer.org/q4-2019-sentiment-index-report

#  #  # 

 

President Trump Signs Spending Bill to Fund Government Until Dec. 20

Posted on by Trey Jackson

President Trump signing legislation

Congress this week passed a four-week spending bill that was by signed President Trump last night to fund the government beyond Nov. 21 and avoid a shutdown.

  • The Continuing Resolution (CR) locks in current funding levels for government operations until Dec. 20 – including the National Flood Insurance and EB-5 investment programs.
  • The measure, passed by the House on Tuesday and the Senate on Thursday, gives Congress three weeks after the Thanksgiving recess to agree on allocating $1.37 trillion for the 2020 fiscal year, which began Oct. 1.  (Roundtable Weekly, Sept. 27)
  • To avoid future stopgap measures for FY2020, policymakers will need to settle the contentious issue of funding for a wall along the U.S.-Mexico border.  Last Dec. 22, the government shutdown for 35 days when Congress and President Trump could not reach agreement on border-security funding for a wall.  (Wall Street Journal, Nov. 22)
  • Senate Appropriations Chairman Richard Shelby (R-AL) commented on recent efforts to reach an agreement for funding the Department of Homeland Security, which oversees border security. “We gotta deal with the wall, too,” Chairman Shelby said this week. “The wall is still there.”  (Politico, Nov. 21)
  • The CR’s extension for the EB-5 investment program until Dec. 20 does not include any legislative reforms.  However, long-anticipated regulatory changes to key elements of the EB-5 regional center program took effect Nov. 21.  (Roundtable Weekly, March 8, 2019).
  • Negotiations to modernize the investment visa program are expected after the Thanksgiving recess in light of a comprehensive EB- reform bill introduced earlier this month (Roundtable Weekly, November 8, 2019).  

The Real Estate Roundtable, U.S. Chamber of Commerce, EB-5 Investment Coalition, and other real estate organizations sent a letter on Nov. 15 in support of the bipartisan Immigrant Investor Program Reform Act (S. 2778) – sponsored by Senate Judiciary Chairman Lindsey Graham (R-SC), Democratic Leader Charles Schumer (D-NY), and Sens. Mike Rounds (R-SD) and John Cornyn (R-TX).

The Senate is scheduled to return on Dec. 2 and the House on Dec. 3.

#  #  # 

House Passes Seven-Year TRIA Reauthorization; Senate Banking Committee Advances Similar Bill

Posted on by Trey Jackson

Capitol Hill

A seven-year reauthorization of the Terrorism Risk Insurance Act (TRIA) passed the House this week (H.R. 4634) as the Senate Banking Committee advanced a similar bill (S. 2877).  Both bills would reauthorize the Terrorism Risk Insurance Program (TRIP) through December 31, 2027.

  • The House passed the Terrorism Risk Insurance Program Reauthorization Act of 2019 (H.R. 4634) on Nov. 18 by a vote of 385–22.  The measure was previously passed unanimously (57-0) by the House Financial Services Committee on Oct. 31.  (Roundtable Weekly, Nov. 1)
  • House Financial Services Committee Chairwoman Maxine Waters (D-CA) stated on the House floor before the chamber vote, “Congress [originally] passed TRIA to ensure that terrorism risk insurance coverage would remain available and affordable. And since that time the program has been effective at doing just that … Treasury data also demonstrates that TRIA is important across America and not just in densely populated urban areas. In fact, they take up rate is higher in the Midwest than it is in the Northeast. I would urge all my colleagues to support this important legislation.”
  • In the Senate, a seven-year extension of the Terrorism Risk Insurance Program (TRIP) was advanced by the Banking Committee on Nov. 20.  The reauthorization bill (S. 2877) was introduced last week by Sens. Thom Tillis (R-NC) and Tina Smith (D-MN), along with 13 bipartisan cosponsors.  The bill now goes to the full Senate, which has not yet scheduled a vote.
  • Chairman Crapo commented during the markup on the importance of TRIP which is scheduled to expire at the end of 2020.  “Since its establishment in 2002, the Program has been reauthorized three different times, in 2005, 2007 and 2015.  Given the Program’s importance to our nation’s economy, regardless of region or state, and the broad bipartisan support in both the House and Senate, it makes sense for the Banking Committee to consider the Program’s reauthorization now,” Crapo said.
  • The similar approach of the House and Senate bills increases the prospect that final passage of a TRIA reauthorization may be included as part of an end-of-the-year funding bill, although prospects of that outcome are uncertain.

Roundtable Chair Debra Cafaro (Chairman and Chief Executive Offer, Ventas Inc.) commented, “The Real Estate Roundtable strongly supports a seven-year reauthorization of TRIA to ensure that terrorism risk insurance coverage will remain available and affordable .  The Roundtable will continue to work with Senate and House policymakers and with the Coalition to Insure Against Terrorism to encourage enactment of this top legislative policy priority as soon as possible to add certainty to the marketplace and reassure stakeholders across many industries who rely on the availability of terrorism insurance coverage for their businesses.  Passage will promote the creation of jobs, enable new projects to proceed, and protect state pension fund investments and lender portfolios.”

#  #  # 

Brand USA Reauthorization Bill Advanced by House Subcommittee

Posted on by Trey Jackson

Legislation to reauthorize Brand USA – the organization that promotes the U.S. globally as a travel destination – easily cleared a markup by the House Energy and Commerce Subcommittee on Consumer Protection and Commerce on Nov. 14. 

  • Brand USA is a public-private partnership that attracts international travelers to the U.S. to encourage tourism spending at America’s hospitality, retail, attraction and other properties. The marketing organization operates at no expense to taxpayers – private sector contributions fund the program, matched by U.S. government fees collected from foreign visitors who enjoy visa-free entry to the U.S. The federal portion of Brand USA funding is scheduled to expire in September 2020.
  • Subcommittee Chairman Frank Pallone (D-NJ) during the House markup of The Travel Promotion, Enhancement, and Modernization Act (H.R. 3851) stated, “Tourism is critical to our economy and every one our communities. Overseas travelers spend more than their domestic counterparts—an average of $4,200 per trip.  It is critical that we renew Brand USA as soon as possible.”  (Rep. Pallone remarks, Nov.14)
  • In the Senate, the Committee on Commerce, Science and Transportation passed the “Brand USA Extension Act” on July 24.  S. 2203 would extend the federal cost-share until 2027, and increase the foreign traveler fees that pay for the federal portion.   (Roundtable Weekly, August 9)
  • The Real Estate Roundtable is part of the Visit U.S. Coalition which advocates for Brand USA reauthorization.  The coalition, led by the U.S. Travel Association (USTA) and the American Hotel and Lodging Association, also includes the American Resort Development Association and the U.S. Chamber of Commerce.
  • U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Barnes noted, “International visitation to the U.S. is flat at a time when global travel is booming, which means that we are leaving a huge opportunity for economic growth on the table.  The situation would be far worse without Brand USA’s demonstrated effectiveness at bringing lucrative international visitor dollars to our shores, and House and committee leaders are to be commended for recognizing the urgency to renew Brand USA this year.” (USTA press release, Nov. 14)
  • The importance of international travel to the domestic economy, job growth, and CRE was the focus of a panel discussion during The Roundtable’s 2018 Annual Meeting. (Roundtable Weekly, June 15, 2018).

The Visit U.S. Coalition is urging inclusion of a bipartisan Brand USA reauthorization bill in must-pass legislation before the end of the year.

#  #  #