WASHINGTON, DC—The start of the week was looking grim for the Terrorism Risk Insurance Act (TRIA) advocates—the best it seemed Congress would do was a short-term extension. However in the last forty-eight hours the negotiations for a long-term deal took a decided turn for the better.

Here is what sources say will be announced in the coming days: The topline news is that TRIA is expected to be extended for six years, with the House of Representatives and the Senate splitting the difference between the five years and seven years, respectively, in their separate bills.

The trigger amount, or threshold, is currently $100 million. The House bill had called for it to be raised to $500 million over five years. The new bill will set the threshold between $200 million to possibly $250 million, to be phased in at $25 million increments a year over the next six years.

In addition, there won't be separate rules for conventional attacks and nuclear and biological attacks. Instead, a study will be conducted to see if such bifurcation is feasible.

Groups lobbying for the extension are feeling cautiously optimistic that this bill will actually happen. It is great news for the commercial real estate industry and all businesses, Jeff DeBoer, CEO of The Real Estate Roundtable, tells GlobeSt.com.

"One of the major potential headwinds to continuing the positive economic growth is being addressed with this bill," he says.

"A short-term extension would not have provided the kind of certainty that the economy needs to continue in the direction that it is."

Of course, DeBoer won't completely celebrate until the bill actually passes Congress. "Nothing is ever done until it is completely done," he says. But Congress appears to be on a roll in this lame duck session – witness the tax extender package that passed the House of Representatives on Wednesday, including the all-important 15-year leasehold improvement depreciation.

Instant Insights /

Long-term TRIA Deal in the Works

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