President Bush has signed a bill that directs the National Academy of Sciences to prepare a report on the health effects posed by former methamphetamine labs on “the residents of buildings where such laboratories are, or were, located, with particular emphasis given to biological impacts on children” and calls for research to develop rapid detection kits to identify meth labs. The new law also requires the Environmental Protection Agency to set guidelines for federal aid to state and local authorities charged with cleaning up former meth lab sites.

Taxation of Carried Interest Proposal Rejected

The National Multi Housing Council is calling it the most significant legislative victory in the multifamily industry in 2007. The council, the National Apartment Association, and other real estate organizations were lobbying Congress not to change the tax treatment of carried interest or the “promote” received by a general partner. Congress had considered taxing carried interest, or the share of profits allocated to the general partner, as ordinary income rather than at the lower capital gain tax rate. Such a change could have raised taxes on carried interest by up to 133 percent. The U.S. House of Representatives had voted in favor of the change last November as a way to pay for a one-year “hold harmless” patch for the alternative minimum tax (AMT). Senate Republicans refused to pass AMT legislation that included any tax increases to offset the AMT relief, so the carried interest provision was stripped from the final AMT bill.