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H.R. 840: Retail Revitalization Act of 2021


The text of the bill below is as of Feb 4, 2021 (Introduced).


I

117th CONGRESS

1st Session

H. R. 840

IN THE HOUSE OF REPRESENTATIVES

February 4, 2021

(for himself, Mr. LaHood, Ms. Sewell, Mr. Suozzi, Mr. Buchanan, Ms. Sánchez, Mrs. Walorski, and Mr. Beyer) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to modify rules related to rents received by real estate investment trusts from related parties.

1.

Short title

This Act may be cited as the Retail Revitalization Act of 2021.

2.

Modification of rules related to rents received by real estate investment trusts from related parties

(a)

Increase in permissible ownership percentage

Section 856(d)(2)(B) of the Internal Revenue Code of 1986 is amended by striking 10 percent or more each place it appears and inserting more than 50 percent.

(b)

Modification of rules for constructive ownership of stock

Section 856(d)(5) of such Code is amended—

(1)

by striking 10 percent shall be substituted for 50 percent in subparagraph (A) and inserting more than 50 percent shall be substituted for 50 percent or more,

(2)

by striking 25 percent or more in subparagraph (B) and inserting more than 50 percent, and

(3)

by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting , and, and by adding at the end the following new subparagraph:

(C)

section 318(a)(5)(C) shall be applied by substituting paragraph (2) or (3) for paragraph (2).

.

(c)

Modification of rules for taxable REIT subsidiaries

Section 856(d)(8)(A)(i) of such Code is amended by striking 90 percent and inserting 50 percent.

(d)

Effective date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.