[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5901 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5901
To amend the Internal Revenue Code of 1986 to exempt certain stock of
real estate investment trusts from the tax on foreign investment in
United States real property interests, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
July 28, 2010
Mr. Crowley introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on the
Budget, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
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A BILL
To amend the Internal Revenue Code of 1986 to exempt certain stock of
real estate investment trusts from the tax on foreign investment in
United States real property interests, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Real Estate Jobs and Investment Act
of 2010''.
SEC. 2. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF REAL ESTATE
INVESTMENT TRUSTS.
(a) In General.--Paragraph (3) of section 897(c) of the Internal
Revenue Code of 1986 is amended--
(1) by striking all that precedes ``If any class'' and
inserting the following:
``(3) Exceptions for certain stock dispositions.--
``(A) Exception for stock regularly traded on
established securities markets.--'',
(2) by adding at the end of subparagraph (A) (as added by
paragraph (1)) the following: ``In the case of any class of
stock of a real estate investment trust, the preceding sentence
shall be applied by substituting `10 percent' for `5
percent'.'', and
(3) by adding at the end the following new subparagraph:
``(B) Exception for certain stock in real estate
investment trusts.--
``(i) In general.--Stock of a real estate
investment trust held by a qualified
shareholder shall not be treated as a United
States real property interest except to the
extent that an investor in the qualified
shareholder holds (directly or indirectly
through the qualified shareholder) more than 10
percent of the stock of such real estate
investment trust.
``(ii) Qualified shareholder.--For purposes
of this subparagraph, the term `qualified
shareholder' means a shareholder--
``(I) which would be eligible for a
reduced rate of withholding under any
income tax treaty of the United States
with respect to ordinary dividends paid
by the real estate investment trust
even if such shareholder holds more
than 10 percent of the stock of such
real estate investment trust, and
``(II) whose principal class of
interests is listed and regularly
traded on one or more recognized stock
exchanges (as defined in the relevant
income tax treaty referred to in
subclause (I)).''.
(b) Distributions of Real Estate Investment Trusts.--Paragraph (1)
of section 897(h) of such Code is amended--
(1) by inserting ``(10 percent in the case of stock of a
real estate investment trust)'' after ``5 percent of such class
of stock'', and
(2) by inserting ``, and any distribution to a qualified
shareholder (as defined in subsection (c)(3)(B)(ii)) shall not
be treated as gain recognized from the sale or exchange of a
United States real property interest to the extent that the
stock of the real estate investment trust held by such
qualified shareholder is not treated as a United States real
property interest under subsection (c)(3)(B)'' before the
period at the end.
(c) Conforming Amendment.--Subparagraph (C) of section 897(c)(6) of
such Code is amended by striking ``more than 5 percent'' and inserting
``more than a particular percentage''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to dispositions
made after the date of the enactment of this Act.
(2) Distributions of real estate investment trusts.--The
amendments made by subsection (b) shall apply to distributions
made after the date of the enactment of this Act.
SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF CERTAIN
FEDERAL CONTRACTORS.
(a) In General.--Subsection (f) of section 6330 of the Internal
Revenue Code of 1986 is amended by striking ``or'' at the end of
paragraph (2), by inserting ``or'' at the end of paragraph (3), and by
inserting after paragraph (3) the following new paragraph:
``(4) the Secretary has served a Federal contractor
levy,''.
(b) Federal Contractor Levy.--Subsection (h) of section 6330 of
such Code is amended--
(1) by striking all that precedes ``any levy in connection
with the collection'' and inserting the following:
``(h) Definitions Related to Exceptions.--For purposes of
subsection (f)--
``(1) Disqualified employment tax levy.--A disqualified
employment tax levy is''; and
(2) by adding at the end the following new paragraph:
``(2) Federal contractor levy.--A Federal contractor levy
is any levy if the person whose property is subject to the levy
(or any predecessor of such person) is a Federal contractor.''.
(c) Conforming Amendment.--The heading of subsection (f) of section
6330 of such Code is amended by striking ``Jeopardy and State Refund
Collection'' and inserting ``Exceptions''.
(d) Effective Date.--The amendments made by this section shall
apply to levies issued after December 31, 2010.
SEC. 4. PAYGO COMPLIANCE.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
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