Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

BOMA International Warns that House-Passed Carried Interest Legislation Will Hinder Economic Recovery

June 1, 2010


(WASHINGTON—June 1, 2010) The Building Owners and Managers Association (BOMA) International today announced that the U.S. House of Representatives’ passage of H.R. 4213, the “American Jobs and Closing Tax Loopholes Act,” will, if passed by the Senate, significantly encumber job creation and economic development. A provision in the legislation changes the treatment of taxation on carried interest income from its current rate as capital gains (taxed at 15 percent) to a blend of capital gains and ordinary income (taxed at nearly 40 percent).  While many believe that the carried interest tax proposal was initiated to provide tax equity between average workers and hedge fund managers, the proposal will actually hurt the commercial real estate industry, job creation and economic development in communities across the U.S.

The House bill treats carried interest as 50 percent ordinary income and 50 percent long-term capital gains for two years, then moves to a permanent 25/75 split (25 percent long-term capital gains/75 percent ordinary income), with an effective date of Jan. 1, 2011. 

“Real estate is a long-term, risk-based investment which is regularly structured as a partnership and therefore often involves a carried interest,” explained BOMA International Chair James A. Peck, RPA, FMA, senior director of asset services, CB Richard Ellis. “The passage of the bill by the Senate would result in fewer jobs, fewer economic development projects, fewer small investors lifting our economy into recovery and less tax income at the local level. It is imperative that policymakers understand that this is a Main Street issue, not a Wall Street issue.”

The commercial real estate industry is a significant contributor to the U.S economy and a key generator of jobs. Last year, the office building industry alone contributed $118.4 billion to the economy and supported more than a million jobs.

To learn more about how the proposed carried interested tax increase will affect real estate, jobs and the economy, see BOMA’s Carried Interest position paper.


About BOMA International
The Building Owners and Managers Association (BOMA) International is an international federation of more than 100 local associations and affiliated organizations. Founded in 1907, its 17,000-plus members own or manage more than nine billion square feet of commercial properties. BOMA International’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information. On the Web at

Lindsay Tiffany
Manager of Media Relations
BOMA International
(202) 326-6365