I 

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. 

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 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Real Estate Jobs and 

5 Investment Act of 2010’’. 


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1 SEC. 2. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF 

2 REAL ESTATE INVESTMENT TRUSTS. 

3 (a) IN GENERAL.—Paragraph (3) of section 897(c) 

4 of the Internal Revenue Code of 1986 is amended— 

5 (1) by striking all that precedes ‘‘If any class’’ 

6 and inserting the following: 

7 ‘‘(3) EXCEPTIONS FOR CERTAIN STOCK DIS8 POSITIONS.— 

9 ‘‘(A) EXCEPTION FOR STOCK REGULARLY

10 TRADED ON ESTABLISHED SECURITIES MAR11 KETS.—’’, 

12 (2) by adding at the end of subparagraph (A) 

13 (as added by paragraph (1)) the following: ‘‘In the 

14 case of any class of stock of a real estate investment 

15 trust, the preceding sentence shall be applied by sub16 stituting ‘10 percent’ for ‘5 percent’.’’, and 

17 (3) by adding at the end the following new sub18 paragraph: 

19 ‘‘(B) EXCEPTION FOR CERTAIN STOCK IN

20 REAL ESTATE INVESTMENT TRUSTS.— 

21 ‘‘(i) IN GENERAL.—Stock of a real es22 tate investment trust held by a qualified 

23 shareholder shall not be treated as a 

24 United States real property interest except 

25 to the extent that an investor in the quali26 fied shareholder holds (directly or indiVerDate Mar 15 2010 02:53 Jul 29, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5901.IH H5901

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1 rectly through the qualified shareholder) 

2 more than 10 percent of the stock of such 

3 real estate investment trust. 

4 ‘‘(ii) QUALIFIED SHAREHOLDER.— 

5 For purposes of this subparagraph, the 

6 term ‘qualified shareholder’ means a share7 holder— 

8 ‘‘(I) which would be eligible for a 

9 reduced rate of withholding under any 

10 income tax treaty of the United States 

11 with respect to ordinary dividends 

12 paid by the real estate investment 

13 trust even if such shareholder holds 

14 more than 10 percent of the stock of 

15 such real estate investment trust, and 

16 ‘‘(II) whose principal class of in17 terests is listed and regularly traded 

18 on one or more recognized stock ex19 changes (as defined in the relevant in20 come tax treaty referred to in sub21 clause (I)).’’. 

22 (b) DISTRIBUTIONS OF REAL ESTATE INVESTMENT

23 TRUSTS.—Paragraph (1) of section 897(h) of such Code 

24 is amended— 


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1 (1) by inserting ‘‘(10 percent in the case of 

2 stock of a real estate investment trust)’’ after ‘‘5 

3 percent of such class of stock’’, and 

4 (2) by inserting ‘‘, and any distribution to a 

5 qualified shareholder (as defined in subsection 

6 (c)(3)(B)(ii)) shall not be treated as gain recognized 

7 from the sale or exchange of a United States real 

8 property interest to the extent that the stock of the 

9 real estate investment trust held by such qualified 

10 shareholder is not treated as a United States real 

11 property interest under subsection (c)(3)(B)’’ before 

12 the period at the end. 

13 (c) CONFORMING AMENDMENT.—Subparagraph (C) 

14 of section 897(c)(6) of such Code is amended by striking 

15 ‘‘more than 5 percent’’ and inserting ‘‘more than a par16 ticular percentage’’. 

17 (d) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2), the amendments made by this section 

20 shall apply to dispositions made after the date of the 

21 enactment of this Act. 

22 (2) DISTRIBUTIONS OF REAL ESTATE INVEST23 MENT TRUSTS.—The amendments made by sub24 section (b) shall apply to distributions made after 

25 the date of the enactment of this Act. 


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1 SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LI2 ABILITIES OF CERTAIN FEDERAL CONTRAC3 TORS. 

4 (a) IN GENERAL.—Subsection (f) of section 6330 of 

5 the Internal Revenue Code of 1986 is amended by striking 

6 ‘‘or’’ at the end of paragraph (2), by inserting ‘‘or’’ at 

7 the end of paragraph (3), and by inserting after paragraph 

8 (3) the following new paragraph: 

9 ‘‘(4) the Secretary has served a Federal con10 tractor levy,’’. 

11 (b) FEDERAL CONTRACTOR LEVY.—Subsection (h) 

12 of section 6330 of such Code is amended— 

13 (1) by striking all that precedes ‘‘any levy in 

14 connection with the collection’’ and inserting the fol15 lowing: 

16 ‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For 

17 purposes of subsection (f)— 

18 ‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.— 

19 A disqualified employment tax levy is’’; and 

20 (2) by adding at the end the following new 

21 paragraph: 

22 ‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 

23 contractor levy is any levy if the person whose prop24 erty is subject to the levy (or any predecessor of 

25 such person) is a Federal contractor.’’. 


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1 (c) CONFORMING AMENDMENT.—The heading of 

2 subsection (f) of section 6330 of such Code is amended 

3 by striking ‘‘JEOPARDY AND STATE REFUND COLLEC4 TION’’ and inserting ‘‘EXCEPTIONS’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to levies issued after December 31, 

7 2010. 

8 SEC. 4. PAYGO COMPLIANCE. 

9 The budgetary effects of this Act, for the purpose of 

10 complying with the Statutory Pay-As-You-Go Act of 2010, 

11 shall be determined by reference to the latest statement 

12 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

13 Act, submitted for printing in the Congressional Record 

14 by the Chairman of the House Budget Committee, pro15 vided that such statement has been submitted prior to the 

16 vote on passage. 

Æ 


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