Last Wednesday, NAIOP joined 35 other national organizations on a letter of support for current provisions governing IRS Section 1031 like-kind exchanges (LKEs). The letter, addressed to the chair and ranking members of the House Committee on Ways and Means and the Senate Finance Committee, urged them to reject the Biden administration’s budget proposals that would curtail the use of LKEs in commercial real estate transactions.

In March, the White House submitted its fiscal year 2025 budget proposal to Congress which included prior proposals to restrict LKEs. According to economic research studies, between 10-20% of commercial real estate transactions involve LKEs. NAIOP has long advocated for preservation of current IRS Section 1031, arguing that LKEs have become a fixture of modern sophisticated commercial real estate markets.