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News

Elon Musk Departs DOGE

June 3, 2025

Elon Musk resigned from his role as a special government employee leading the Trump Administration’s Department of Government Efficiency (DOGE) last week.

  • While Musk is departing, he posted to X last week that the work of DOGE will continue and that the “DOGE mission will strengthen over time as it becomes a way of life throughout the government.”
  • Musk expressed gratitude for the opportunity to serve and indicated that the mission of DOGE would continue to influence government operations. 
  • President Donald Trump acknowledged Musk's contributions, stating that while Musk is officially leaving, he would remain as an informal adviser.

By the numbers: Musk's tenure at DOGE was marked by ambitious goals to reduce federal spending by up to $2 trillion. "I think if we try for 2 trillion, we've got a good shot at getting 1,” Musk said earlier this year, according to Reuters. He described the $2 trillion target as a "best-case outcome."

However, DOGE has only reported savings of approximately $175 billion, a figure that has been met with skepticism due to questions over data accuracy and the broader economic impact of the implemented cuts. DOGE’s cost-cutting efforts have sought to reduce the federal workforce through a variety of firings, buyouts, and planned reductions in force.

What they’re saying: Musk, who left DOGE to refocus on his businesses, publicly criticized President Trump's One Big Beautiful Bill, warning that it would elevate the federal deficit and undermine DOGE's cost-cutting efforts.
 
Certain GOP members on Capitol Hill agree with Musk and have argued against the One Big Beautiful Bill.
 
  • Senator Rand Paul (R-KY) recently vocalized his opposition to the bill on X, arguing that it would explode the country’s debt and undermine all the progress DOGE has made.
  • His vote, among others, in the Senate will be key to ensuring the bill’s success or failure.

Contact James Montfort (Jmontfort@crefc.org) with any questions.

Contact  

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Elon Musk Departs DOGE
June 3, 2025
Elon Musk resigned from his role as a special government employee leading the Trump Administration’s Department of Government Efficiency (DOGE) last week.

News

Section 899: Retaliatory Tax Power in Bill Raising Concerns

June 3, 2025

Real estate market participants and other industries with a global investor base are raising concerns about a provision that would expand Treasury’s authority to impose retaliatory taxes on foreign direct investment in the U.S.

Why it matters: The One Big Beautiful Bill contains a provision—Section 899—that would allow Treasury to impose annual tax increases of 5% on any foreign individual, government, corporation, trust, foundations, etc. in response to unfair tax treatment against the U.S. The increases are capped at 20%, which is in addition to any existing tax the entity pays. 

What they’re saying: Chairman Jason Smith (R-MO), the House’s chief tax writer and the provision’s author, was quoted in Axios defending the measure:  

A big concern is that foreign governments, based on agreements entered into by the Biden administration, is trying to suck away billions of dollars from U.S. companies … This is a way to help put them in check, so that they understand that if they do that to our businesses, there will be consequences for their actions. Hopefully it'll never take effect.
A CNBC article quoted several investment bank research analysts criticizing the provision. 
 
 
We see this legislation as creating the scope for the U.S. administration to transform a trade war into a capital war if it so wishes.” -George Saravelos, global head of FX research at Deutsche Bank
Go deeper: According to the Ways and Means Committee section-by-section summary:
 
  • The provision responds to unfair taxes by increasing the rate of tax generally applicable to certain taxpayers connected to the foreign jurisdiction.
  • Affected taxpayers generally include the foreign government, resident individuals, resident corporations, resident foreign private foundations, and entities owned by such persons.
  • The increases apply to certain income, withholding, and excise taxes imposed on non-residents.
  • The rate of tax-imposed increases from the rates otherwise applicable under current law in 5% increments for each year the unfair tax is imposed, until either the unfair tax is removed or the tax reaches a maximum amount equal to the relevant statutory rate plus 20%.
What’s next: The provision will be further scrutinized as the Senate begins its consideration of the reconciliation bill this week. CREFC will continue to work with its industry partners to address any concerns related to CRE and multifamily finance.
 
Contact David McCarthy (dmccarthy@crefc.org) with any questions.
 

Contact  

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Section 899: Retaliatory Tax Power in Bill Raising Concerns
June 3, 2025
Real estate market participants and other industries with a global investor base are raising concerns about a provision that would expand Treasury’s authority to impose retaliatory taxes on foreign direct investment in the U.S.

News

Reconciliation Update: Tax Bill Goes to Senate

June 3, 2025

The Republican reconciliation legislation—One Big Beautiful Bill— heads to the Senate as Congress returns from its Memorial Day recess. 

Why it matters: The bill will extend many of the 2017 Tax Cuts and Jobs Act (TCJA) provisions and deliver on many of the President’s campaign priorities. 

  • After the House narrowly passed the bill 215-214, Republicans are optimistic they can deliver the legislation to the President’s desk by July 4. 
  • That timeline could slip to August, but the debt ceiling “X-date” will be a hard deadline on enacting the bill. 

The big picture: The Senate is expected to leave its imprint on the bill, though key changes will likely focus on several controversial items. A variety of factions will make the path in the 53-47 Senate tricky, but House leaders argue the 220-213 House chamber is harder to pass. 

  • Personal SALT Deduction: Speaker Mike Johnson (R-LA) struck a deal with the SALT caucus to raise the deduction cap to $40,000 with a phase-out for incomes above $500,000. However, there are no “SALT senators,” so the levels could be readjusted to lessen the budgetary impact. Still, senators are aware that the House GOP SALT caucus holds enough votes to kill the legislation if the levels aren’t satisfactory. 
  • IRA Tax Credits: A variety of Inflation Reduction Act (IRA) tax credits for energy-efficient conversions, electric vehicles, and other upgrades will sunset sooner under the current language, which the Speaker updated to get budget hawks on board. Several GOP senators are more supportive of the tax credits and do not want to cut off businesses that have made investments. 
  • Overall Spending and Medicaid: Senate leaders will have to navigate moderates and Medicaid supporters, who are pitted against fiscal hawks who want to slow or reduce government spending through entitlement reforms. Sen. Rand Paul (R-KY) is refusing to support the bill as long as the debt ceiling remains included.
What they’re saying: For commercial and multifamily real estate, the topline issues remain largely the same. 

  • 199A Passthrough: The qualified business income deduction increases to 23% from 20% and is made permanent.
  • Low-Income Housing Tax Credit (LIHTC) Boost: The bill would increase the state housing credit ceiling by 12.5% and lower the tax-exempt bond requirements, similar to the 2024 Wyden-Smith Bill.
  • Renews Opportunity Zones: The bill authorizes a new round of Opportunity Zone designations, starting on Jan. 1, 2027, and ending on Dec. 31, 2033. Some tweaks were made to various low-income definitions, and we expect the Senate will make additional modifications to the program. 
  • Bonus Depreciation Made Permanent: Allows full expensing of qualifying property.
  • Interest Expense Deduction: Increases the cap on the deductibility of business interest expense under 163(j) for taxable years beginning after 2024 and before 2030 by allowing the EBITDA definition of taxable income. 
    • Note that the 2017 TCJA law allows real property trade or business to elect not to be subject to the cap, but they must be depreciated using the alternative depreciation system. 
  • Immediate Factory Expensing: The qualified production property would allow full, immediate expensing for certain manufacturing buildings with construction beginning in 2025 through 2029 and placed into service.
    • The legislation limits the deduction to owner-occupied facilities that manufacture, produce, or refine any tangible personal property. 
    • Office space associated with the facility is explicitly excluded from the definition. The current language would also exclude leased facilities. 
  • Section 899: Real estate and other industries with a global investor base are raising concerns about a provision that would expand Treasury’s authority to impose retaliatory taxes on foreign direct investment in the U.S. (Read more about Section 899 in the article below.)
Yes, but: The real estate industry has been concerned about a few items that did not end up making it in the bill. 

  • No Business SALT Cap: There are no provisions to cap business state and local income or property taxes. However, rumors persist that this item could show up again in a future version. 
  • No Carried Interest Rollback: President Trump had reiterated his push to close this “loophole” in a call last week with Speaker Mike Johnson (R-LA). The bill does not change carried interest treatment.
Contact David McCarthy (dmccarthy@crefc.org) with any questions. 

Contact  

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Reconciliation Update: Tax Bill Goes to Senate
June 3, 2025
The Republican reconciliation legislation—One Big Beautiful Bill— heads to the Senate as Congress returns from its Memorial Day recess.

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