H.R. 8805 - Retail Revitalization Act of 2020

116TH CONGRESS
2D SESSION

H.R. 8805

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

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 20, 2020

Mr. SCHNEIDER (for himself and Mr. LAHOOD)
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.

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 ‘‘Retail Revitalization Act of 2020’’.

SEC. 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.