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Yarmuth Introduces New Legislation to Cut Taxes, Spur Investment in Commercial Real Estate Market

Tuesday May 11, 2010
(Louisville, KY) Today, Congressman John Yarmuth (KY-3) announced he would introduce new legislation to incentivize investment in the commercial real estate market by cutting tax rates for new purchases. With investment in the commercial real estate sector down 90 percent from the levels reached in 2007, many analysts fear troubles in the sector will threaten a full economic recovery. Today, the Congressman will introduce The Real Estate Investment Incentive Act to spur new commercial real estate investments by offering investors a significant capital gains tax cut.
 
“With so much uncertainty in the commercial sector, there are a lot of people on the sidelines of the market, reluctant to get in the game because they aren’t sure their investments will pay off,” said Congressman Yarmuth. “This legislation will generate economic development and job creation by cutting taxes to help make the marketplace more attractive for investors.” 
 
Congressman Yarmuth’s legislation will create an incentive for investors making new acquisitions by cutting capital gains tax rates for properties purchased this year. Investors who buy commercial real estate in that time period will see their capital gains taxes rates drop to 5 percent - a significant cut from the current 15 percent rate.
 
Like the First-time homebuyer tax credit, this cut will be in effect for a short period of time, applied to new acquisitions made this year (the taxable year ending after the date of enactment).
 
Because of its expected benefits to the marketplace, the legislation is being endorsed by the National Association of Realtors.
 
“Congressman Yarmuth’s bill would offer a unique incentive to purchasers of commercial property that I've not seen in my lifetime,” said John J. Weikel, Federal Political Coordinator for the National Association of Realtors.
 
Joining the Congressman to announce the legislation in Louisville were Mr. Weikel and David Davis, President of Commonwealth Commercial Real Estate.