H.R. 2198: To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test.
The bill aims to amend the Internal Revenue Code of 1986 regarding Real Estate Investment Trusts (REITs). Specifically, it focuses on the asset test for taxable REIT subsidiaries. Here’s a breakdown of the key provisions:
Restoration of Asset Test
The bill proposes to adjust the current requirement of the taxable REIT subsidiary asset test. The change will increase the limit on the amount of a taxable REIT subsidiary's assets that can consist of non-qualifying assets from 20 percent to 25 percent.
Effective Date
The changes made by this bill would take effect for taxable years that begin after December 31, 2025. This means that companies and their subsidiaries will need to comply with the new asset test requirement starting in the fiscal year that follows this date.
Purpose of the Bill
The rationale behind this amendment is to provide more flexibility for taxable REIT subsidiaries in managing their asset compositions. This could potentially allow them to allocate a greater portion of their assets to non-REIT qualifying investments without breaching the regulatory limitations currently in place.
Broader Implications
By allowing a higher percentage of non-qualifying assets, the bill aims to give taxable REIT subsidiaries a chance to enhance their portfolio diversification and investments in various other sectors, which could lead to potential growth and expansion opportunities in line with evolving market conditions.
Relevant Companies
None found
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
21 bill sponsors
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TrackMike Kelly
Sponsor
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TrackVern Buchanan
Co-Sponsor
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TrackMike Carey
Co-Sponsor
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TrackDanny K. Davis
Co-Sponsor
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TrackSuzan K. DelBene
Co-Sponsor
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TrackRon Estes
Co-Sponsor
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TrackRandy Feenstra
Co-Sponsor
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TrackBrian K. Fitzpatrick
Co-Sponsor
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TrackKevin Hern
Co-Sponsor
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TrackDavid Kustoff
Co-Sponsor
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TrackDarin LaHood
Co-Sponsor
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TrackNicole Malliotakis
Co-Sponsor
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TrackBlake D. Moore
Co-Sponsor
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TrackGwen Moore
Co-Sponsor
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TrackNathaniel Moran
Co-Sponsor
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TrackGregory F. Murphy
Co-Sponsor
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TrackJimmy Panetta
Co-Sponsor
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TrackBradley Scott Schneider
Co-Sponsor
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TrackAdrian Smith
Co-Sponsor
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TrackThomas R. Suozzi
Co-Sponsor
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TrackClaudia Tenney
Co-Sponsor
Actions
2 actions
| Date | Action |
|---|---|
| Mar. 18, 2025 | Introduced in House |
| Mar. 18, 2025 | Referred to the House Committee on Ways and Means. |
Corporate Lobbying
4 companies lobbying
