With the Senate Finance and House Ways & Means Committees preparing to hold hearings on the shortfall in the Highway Trust Fund, NAREIT has joined a coalition of industry organizations in supporting reform of the Foreign Investment in Real Property Tax Act (FIRPTA) rules as one way to better allow the capital markets to meet infrastructure needs.

In separate letters sent to the House and Senate tax-writing committees on June 17, the groups pointed out that FIRPTA discourages cross-border investment in U.S. real estate and infrastructure.

“FIRPTA law subjects foreign investment in U.S. real estate or infrastructure to a much higher tax burden than applies to a foreign investor purchasing a U.S. stock or bond, or an investment in any other asset class,” the organizations wrote. “FIRPTA reform would serve as a strong, market-driven catalyst for the financing of much-needed infrastructure improvements, including upgrades to our transportation system.

(Contact: Dara Bernstein at dbernstein@nareit.com)

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