NAREIT and 17 other organizations are supporting the Real Estate Investment and Jobs Act of 2015, which is expected to be formally introduced in the House of Representatives on April 30 by Reps. Kevin Brady (R-TX) and Joseph Crowley’s (D-NY).
The bipartisan legislation is intended to create jobs and stimulate investment in U.S. commercial real estate and infrastructure by providing relief from the Foreign Investment in Real Property Tax Act (FIRPTA).
In a letter to members of Congress, the organizations wrote that FIRPTA is “a major impediment” to investing in the U.S. as it 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 Brady/Crowley legislation would increase the ownership stake that a foreign investor can take in a publicly traded U.S. REITs without triggering FIRPTA liability and extend the provision to certain collective investment vehicles. It would also remove the tax penalty that FIRPTA imposes on foreign pension funds that invest in U.S. real estate and infrastructure.
CLICK HERE to read the organizations' letter in support of the Real Estate Investment and Jobs Act of 2015.
(Contact: Dara Bernstein at DBernstein@nareit.com)