{"id":1004763062,"date":"2025-06-27T12:14:16","date_gmt":"2025-06-27T20:14:16","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004763062"},"modified":"2025-06-30T04:55:08","modified_gmt":"2025-06-30T12:55:08","slug":"congress-to-drop-provision-899-from-budget-bill","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/","title":{"rendered":"Congress to Drop Provision 899 From Budget Bill"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a2d559cb1e0f&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"410\" height=\"310\" data-attachment-id=\"1004763067\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/scott-bessent\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\" data-orig-size=\"410,310\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"Scott Bessent\" data-image-description=\"\" data-image-caption=\"&lt;p&gt;Following successful negotiations with the other G7 nations, Treasury Scott Bessent requested the provision be eliminated.&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg?w=410\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\" alt=\"\" class=\"wp-image-1004763067\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg 410w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg?resize=300,227 300w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Following successful negotiations with the other G7 nations, Treasury Secretary Scott Bessent requested the provision be eliminated. <a href=\"https:\/\/www.c-span.org\/program\/house-committee\/treasury-secretary-testifies-on-department-priorities\/660883\">Screenshot from C-Span<\/a><\/figcaption><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>The One Big Beautiful Bill budget proposal is now missing a provision that would have been pretty undesirable for commercial real estate.<\/p>\n\n\n\n<p>Treasury Secretary Scott Bessent announced on X on Thursday that he has asked Republican lawmakers to eliminate Provision 899, which would impose annual tax increases of 5 percent on direct investment in the U.S. by foreign investors. Its removal would add &#8220;greater certainty and stability for the global economy,&#8221; Bessent wrote.<\/p>\n\n\n\n<p>The \u201crevenge tax,\u201d as it has been described, was in response to tax policies in other countries that have been deemed unfair to the U.S. The tax would have been capped at 20 percent and would have been called off if a foreign country removed the unfair tax.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p><strong>READ ALSO:<\/strong> <a href=\"https:\/\/www.commercialsearch.com\/news\/foreign-investment-down-but-not-out\/\">Foreign Investment Down, but Not Out<\/a><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity has-very-light-gray-to-cyan-bluish-gray-gradient-background has-background is-style-wide\"\/>\n\n\n\n<p>Industry groups have been lobbying hard against the provision because of the negative effect it would have on foreign investment in U.S. real estate. On June 12, the Real Estate Roundtable and 11 other industry groups sent a letter to Congress asking that Provision 899 be revised to exempt non-controlling foreign debt and equity interests in U.S. real estate and to exclude existing transactions. <\/p>\n\n\n\n<p>Provision 899 would have had a direct impact on the cost of capital for U.S. investors that use foreign capital to fund their investments, and it would have had a \u201cchilling effect\u201d on foreign investment generally, according to David McCarthy, managing director &amp; head of legislative affairs, for CREFC, which participated in RER\u2019s letter.<\/p>\n\n\n\n<p>\u201cI\u2019m glad the administration was able to negotiate an agreement,\u201d McCarthy said. \u201cI\u2019m glad Congress stepped back on this.\u201d<\/p>\n\n\n\n<p>Debt securities were the only form of investment that would not have been covered by the provision.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-reaching-back-to-address-current-circumstances\">Reaching back to address current circumstances<\/h2>\n\n\n\n<p>Congress\u2019 ability to impose Provision 899 comes from Section 891 of the U.S. tax code. Enacted in 1934, Section 981 allows the U.S. to double tax foreign citizens and corporations when taxes in foreign countries are deemed \u201cdiscriminatory or extraterritorial.\u201d It has not been formally used to date but \u201cinternational parity\u201d is a policy priority for President Trump, McCarthy noted.<\/p>\n\n\n\n<p>\u201cPeople learned the lesson: You take the administration at its word,\u201d he said. \u201cThey are willing to take this to the mat on international issues.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The retaliatory tax would have penalized foreign investors for &#8220;unfair&#8221; taxes in their home countries and put a damper on a critical source of CRE funding.<\/p>\n","protected":false},"author":756,"featured_media":1004763067,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,16,21783,21742],"tags":[33985,33981],"class_list":["post-1004763062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-international","category-investment","category-latest","tag-commercial-real-estate-finance-council","tag-the-real-estate-roundtable"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Congress to Drop Provision 899 From Budget Bill - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Congress to Drop Provision 899 From Budget Bill\" \/>\n<meta property=\"og:description\" content=\"The retaliatory tax would have penalized foreign investors for &quot;unfair&quot; taxes in their home countries and put a damper on a critical source of CRE funding.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-27T20:14:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-30T12:55:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"410\" \/>\n\t<meta property=\"og:image:height\" content=\"310\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Therese Fitzgerald\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/\",\"name\":\"Congress to Drop Provision 899 From Budget Bill - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\",\"datePublished\":\"2025-06-27T20:14:16+00:00\",\"dateModified\":\"2025-06-30T12:55:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg\",\"width\":410,\"height\":310,\"caption\":\"Following successful negotiations with the other G7 nations, Treasury Scott Bessent requested the provision be eliminated.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Congress to Drop Provision 899 From Budget Bill\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713\",\"name\":\"Therese Fitzgerald\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96\",\"caption\":\"Therese Fitzgerald\"},\"description\":\"Therese Fitzgerald has nearly 20 years experience writing and editing commercial real estate content. She got her start writing about the New York City market with Real Estate Weekly and later joined CPE\u2019s predecessor publication, Commercial Property News, where she held various positions including editor in chief. In addition to working on the CPE and MHN websites, she edits CPE's Capital Markets Newsletter and MHN's Finance &amp; Investment Newsletter. Tune into her Sustainability Street podcast on CPE.\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/therese-fitzgerald\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Congress to Drop Provision 899 From Budget Bill - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/","og_locale":"en_US","og_type":"article","og_title":"Congress to Drop Provision 899 From Budget Bill","og_description":"The retaliatory tax would have penalized foreign investors for \"unfair\" taxes in their home countries and put a damper on a critical source of CRE funding.","og_url":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2025-06-27T20:14:16+00:00","article_modified_time":"2025-06-30T12:55:08+00:00","og_image":[{"width":410,"height":310,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg","type":"image\/jpeg"}],"author":"Therese Fitzgerald","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/","url":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/","name":"Congress to Drop Provision 899 From Budget Bill - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg","datePublished":"2025-06-27T20:14:16+00:00","dateModified":"2025-06-30T12:55:08+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg","width":410,"height":310,"caption":"Following successful negotiations with the other G7 nations, Treasury Scott Bessent requested the provision be eliminated."},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/congress-to-drop-provision-899-from-budget-bill\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Congress to Drop Provision 899 From Budget Bill"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/72a93f240402a8c7f4e56a69aed5f713","name":"Therese Fitzgerald","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2023\/02\/head.jpg?w=96","caption":"Therese Fitzgerald"},"description":"Therese Fitzgerald has nearly 20 years experience writing and editing commercial real estate content. She got her start writing about the New York City market with Real Estate Weekly and later joined CPE\u2019s predecessor publication, Commercial Property News, where she held various positions including editor in chief. In addition to working on the CPE and MHN websites, she edits CPE's Capital Markets Newsletter and MHN's Finance &amp; Investment Newsletter. Tune into her Sustainability Street podcast on CPE.","url":"https:\/\/www.commercialsearch.com\/news\/author\/therese-fitzgerald\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/06\/Scott-Bessent.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004763062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/756"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004763062"}],"version-history":[{"count":10,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004763062\/revisions"}],"predecessor-version":[{"id":1004763185,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004763062\/revisions\/1004763185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004763067"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004763062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004763062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004763062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}