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ADISA Co-Signs Letter in Support of the Invest in America Act

Nov 21, 2018

ADISA has joined major housing and real estate organizations in co-signing a letter to Congress in support of the bipartisan Invest in America Act (H.R. 6726) recently introduced by Representatives Kenny Marchant (R-TX) and Joseph Crowley (D-NY), which would repeal the Foreign Investment in Real Property Tax Act (FIRPTA).

FIRPTA is a major obstacle to capital formation and investment in U.S. commercial real estate and infrastructure. It discriminates against real estate by subjecting foreign investors to U.S. capital gains tax on their sale of U.S. real estate and infrastructure.

Furthermore, a recent study, by University of California, Berkeley professor and economist Ken Rosen estimates FIRPTA repeal would generate 147,000-284,000 new, well-paying jobs in the United States by spurring greater inbound investment in U.S. real estate and infrastructure.

The Invest in America Act would build on recent progress. Prior, collective efforts on FIRPTA reform resulted in bipartisan bills that were cosponsored by 90% of the members of the tax-writing committees.

ADISA has previously supported efforts to reform FIRPTA:

ADISA Co-Signs Coalition Letter on FIRPTA Reform (December 2015)

ADISA Co-Signs Letter to House Means & Ways Committee to Support the Real Estate Investment and Jobs Act of 2015 (April 2015)

ADISA Supports Legislative Bill to Reform FIRPTA (February 2015)

ADISA Support Relief from Foreign Investment in Real Property Tax Act (November 2014)
 
Finally, the Invest in America Act should have little, if any, negative effect on federal tax revenue. Because FIRPTA so effectively deters investment activity, the actual amount of tax revenue generated by FIRPTA is minimal. Historically, FIRPTA has produced $50 million or less in revenue per year.

The letter was co-signed by the following organizations:
The Real Estate Roundtable
ADISA
American Hotel & Lodging Association
American Institute of Architects
American Land Title Association
American Resort Development Association
American Seniors Housing Association
Appraisal Institute
Associated General Contractors of America
Building Owners and Managers Association International
Federation of Exchange Accommodators
Institute for Portfolio Alternatives
International Council of Shopping Centers
Mortgage Bankers Association
NAIOP, the Commercial Real Estate Development Association
National Apartment Association
National Multifamily Housing Council

You can read the letter in its entirety here.