Real Estate Firms Need Treasury’s Help on Capital-Spending Tax Break

Real estate companies are urging the Treasury Department to clear the way for them to take advantage of a major new tax break in the giant 2025 tax-and-spending law that many are currently blocked from using.

The companies are locked out of fully deducting their capital spending upfront because of an agreement they made several years ago, after an earlier tax revamp. They agreed to stretch out their deductions on capital investments, in exchange for more favorable tax treatment of the interest they pay on their debt—and now they’re not allowed to change course.

Real estate companies that used a ...