111TH CONGRESS 

2D SESSION H. R. 5901 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE. 

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

3 Investment Act of 2010’’. 

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

5 REAL ESTATE INVESTMENT TRUSTS. 

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

7 of the Internal Revenue Code of 1986 is amended— 

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

9 and inserting the following: 

10 ‘‘(3) EXCEPTIONS FOR CERTAIN STOCK DIS11 POSITIONS.— 

12 ‘‘(A) EXCEPTION FOR STOCK REGULARLY

13 TRADED ON ESTABLISHED SECURITIES MAR14 KETS.—’’, 

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

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

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

18 trust, the preceding sentence shall be applied by sub19 stituting ‘10 percent’ for ‘5 percent’.’’, and 

20 (3) by adding at the end the following new sub21 paragraph: 

22 ‘‘(B) EXCEPTION FOR CERTAIN STOCK IN

23 REAL ESTATE INVESTMENT TRUSTS.— 

24 ‘‘(i) IN GENERAL.—Stock of a real es25 tate investment trust held by a qualified 

26 shareholder shall not be treated as a 
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1 United States real property interest except 

2 to the extent that an investor in the quali3 fied shareholder holds (directly or indi4 rectly through the qualified shareholder) 

5 more than 10 percent of the stock of such 

6 real estate investment trust. 

7 ‘‘(ii) QUALIFIED SHAREHOLDER.— 

8 For purposes of this subparagraph, the 

9 term ‘qualified shareholder’ means a share10 holder— 

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

12 reduced rate of withholding under any 

13 income tax treaty of the United States 

14 with respect to ordinary dividends 

15 paid by the real estate investment 

16 trust even if such shareholder holds 

17 more than 10 percent of the stock of 

18 such real estate investment trust, and 

19 ‘‘(II) whose principal class of in20 terests is listed and regularly traded 

21 on one or more recognized stock ex22 changes (as defined in the relevant in23 come tax treaty referred to in sub24 clause (I)).’’. 
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1 (b) DISTRIBUTIONS OF REAL ESTATE INVESTMENT

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

3 is amended— 

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

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

6 percent of such class of stock’’, and 

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

8 qualified shareholder (as defined in subsection 

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

10 from the sale or exchange of a United States real 

11 property interest to the extent that the stock of the 

12 real estate investment trust held by such qualified 

13 shareholder is not treated as a United States real 

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

15 the period at the end. 

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

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

18 ‘‘more than 5 percent’’ and inserting ‘‘more than a par19 ticular percentage’’. 

20 (d) EFFECTIVE DATE.— 

21 (1) IN GENERAL.—Except as provided in para22 graph (2), the amendments made by this section 

23 shall apply to dispositions made after the date of the 

24 enactment of this Act. 
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1 (2) DISTRIBUTIONS OF REAL ESTATE INVEST2 MENT TRUSTS.—The amendments made by sub3 section (b) shall apply to distributions made after 

4 the date of the enactment of this Act. 

5 SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LI6 ABILITIES OF CERTAIN FEDERAL CONTRAC7 TORS. 

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

9 the Internal Revenue Code of 1986 is amended by striking 

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

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

12 (3) the following new paragraph: 

13 ‘‘(4) the Secretary has served a Federal con14 tractor levy,’’. 

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

16 of section 6330 of such Code is amended— 

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

18 connection with the collection’’ and inserting the fol19 lowing: 

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

21 purposes of subsection (f)— 

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

23 A disqualified employment tax levy is’’; and 

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

25 paragraph: 
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1 ‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 

2 contractor levy is any levy if the person whose prop3 erty is subject to the levy (or any predecessor of 

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

5 (c) CONFORMING AMENDMENT.—The heading of 

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

7 by striking ‘‘JEOPARDY AND STATE REFUND COLLEC8 TION’’ and inserting ‘‘EXCEPTIONS’’. 

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

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

11 2010. 

12 SEC. 4. PAYGO COMPLIANCE. 

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

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

15 shall be determined by reference to the latest statement 

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

17 Act, submitted for printing in the Congressional Record 

18 by the Chairman of the House Budget Committee, pro19 vided that such statement has been submitted prior to the 

20 vote on passage. 

Passed the House of Representatives July 30, 2010. 

Attest: 

Clerk. 

111TH CONGRESS 

2D SESSION H. R. 5901 

AN ACT 

To amend the Internal Revenue Code of 1986 to 

other purposes. United States real property interests, and for trusts from the tax on foreign investment in exempt certain stock of real estate investment