Bill Would Allow REITs to Participate Fully in Energy Grant Program Without Limitation Based on Retained Income

Reps. Linda Sánchez (D-CA), Shelley Berkley (D-NV), Dean Heller (R-NV) and Devin Nunes (R-CA) introduced legislation today that would allow REITs to be fully eligible for energy grants without a limitation based on their statutorily mandated payment of taxable income as dividends to shareholders. Click here to view the statutory language of H.R. 4256, the Sustainable Property Grants Act of 2009.

To encourage investment in renewable energy projects, the stimulus bill enacted earlier this year created a two-year program through which companies may receive a cash grant in lieu of a tax credit for investing in certain renewable energy projects, such as the installation of solar panels on rooftops. These grants are intended to encourage qualifying investments by taxpayers whose tax liability may not be sufficient to benefit from tax credits. The current law prevents REITs from participating fully in this program.

NAREIT commends Rep. Sánchez and her colleagues for recognizing the value in providing incentives for REITs to engage in energy efficiency projects that could significantly contribute to achieving the energy reduction goals outlined by Congress and the Obama Administration.