The Senate Finance Committee published reports from its tax reform working groups on July 8, which include REIT-related provisions backed by NAREIT.
The international working group called for revisions to the Foreign Investment in Real Property Tax Act (FIRPTA), noting that the FIRPTA rules discourage cross-border investment in U.S. infrastructure. The co-chairs of the international group, Sens. Rob Portman (R-OH) and Charles Schumer (D-NY), said tax reform should include the FIRPTA measures from the NAREIT-endorsed Real Estate Investment and Jobs Act of 2015 (H.R. 2128):
- Increase the ownership stake that a foreign investor can take in a U.S. publicly traded REIT without triggering FIRPTA liability by increasing the FIRPTA exemption for portfolio investors in a U.S. publicly traded REIT from 5 percent to 10 percent; and
- Improve tax parity and put foreign pension funds on a level playing field with domestic pension funds by exempting foreign pension funds from FIRPTA.
NAREIT wrote to Senate Finance in April with its perspectives on tax reform.
(Contact: Dara Bernstein at email@example.com)