I 

116TH CONGRESS 

1ST SESSION H. R. 2210 

To amend the Internal Revenue Code of 1986 to repeal certain provisions 

applicable to foreign investment in United States real property. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2019 

Mr. LARSON of Connecticut (for himself, Mr. MARCHANT, Mr. BLUMENAUER, 

Mr. DANNY K. DAVIS of Illinois, Mr. HOLDING, Mr. HORSFORD, Mr. 

KIND, Mr. LAHOOD, Mr. PASCRELL, Mr. SUOZZI, and Mrs. WALORSKI) 

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 repeal 

certain provisions applicable to foreign investment in 

United States real property. 

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 ‘‘Invest in America 

5 Act’’. 


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1 SEC. 2. REPEAL OF AMENDMENTS MADE BY THE FOREIGN 

2 INVESTMENT IN REAL PROPERTY TAX ACT OF 

3 1980 (‘‘FIRPTA’’). 

4 (a) REPEAL OF CAPITAL GAINS TAX ON DISPOSITION

5 OF INVESTMENTS IN UNITED STATES REAL PROPERTY

6 BY FOREIGN CITIZENS.— 

7 (1) IN GENERAL.—Subpart D of part II of sub8 chapter N of chapter 1 of the Internal Revenue Code 

9 of 1986 is amended by striking section 897. 

10 (2) CONFORMING AMENDMENTS.— 

11 (A) Section 852(b)(3) of such Code is 

12 amended by striking subparagraph (E). 

13 (B) Section 857(b)(3) of such Code is 

14 amended by striking subparagraph (E) and by 

15 redesignating subparagraph (F) as subpara16 graph (E). 

17 (C) Section 861(a)(5) of such Code is 

18 amended to read as follows: 

19 ‘‘(5) SALE OR EXCHANGE OF REAL PROP20 ERTY.—Gains, profits, and income from the sale or 

21 exchange of interests in real property (as defined in 

22 section 856(c)(5)(C), except that such term shall in23 clude mineral, oil, and gas royalty interests) located 

24 in the United States.’’. 

25 (D) Section 862(a) of such Code is amend26 ed by adding ‘‘and’’ at the end of paragraph 


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1 (7), by striking paragraph (8), and by redesig2 nating paragraph (9) as paragraph (8). 

3 (E) Section 864(c)(8) of such Code is 

4 amended by striking subparagraph (C) and by 

5 redesignating subparagraphs (D) and (E) as 

6 subparagraphs (C) and (D), respectively. 

7 (F) Section 871(h)(4)(C)(v)(I) of such 

8 Code is amended by striking ‘‘other than prop9 erty described in section 897(c)(1) or (g)’’. 

10 (G) Section 871(k)(2) of such Code is 

11 amended by striking subparagraph (E). 

12 (H) Section 871(n) of such Code is amend13 ed by striking paragraph (7). 

14 (I) Section 882(a) of such Code is amend15 ed by striking paragraph (3). 

16 (J) Section 884(d)(2) of such Code is 

17 amended by striking subparagraph (C) and by 

18 redesignating subparagraphs (D) and (E) as 

19 subparagraphs (C) and (D), respectively. 

20 (K) Section 1125 of the Foreign Invest21 ment in Real Property Tax Act of 1980 is 

22 amended by striking subsections (c) and (d). 

23 (3) CLERICAL AMENDMENT.—The table of sec24 tions for subpart D of part II of subchapter N of 


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1 chapter 1 of such Code is amended by striking the 

2 item relating to section 897. 

3 (b) REPEAL OF WITHHOLDING OF TAX ON DISPOSI4 TIONS OF UNITED STATES REAL PROPERTY INTER5 ESTS.— 

6 (1) IN GENERAL.—Subchapter A of chapter 3 

7 of such Code is amended by striking section 1445. 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) Section 1446(f)(2)(A) of such Code is 

10 amended by striking ‘‘is not a foreign person’’ 

11 and inserting ‘‘is a United States person’’. 

12 (B) Section 1446(f)(2) of such Code is 

13 amended— 

14 (i) by striking ‘‘section 1445(d)’’ in 

15 subparagraph (B)(i) and inserting ‘‘sub16 paragraph (C)’’; and 

17 (ii) by striking subparagraph (C) and 

18 inserting the following new subparagraphs: 

19 ‘‘(C) NOTICE OF FALSE AFFIDAVIT; FOR20 EIGN CORPORATIONS.—If the transferor fur21 nishes the transferee an affidavit described in 

22 subparagraph (A), and 

23 ‘‘(i) in the case of any transferor’s 

24 agent— 


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1 ‘‘(I) such agent has actual knowl2 edge that such affidavit is false, or 

3 ‘‘(II) in the case of an affidavit 

4 described in subparagraph (A) fur5 nished by a corporation, such corpora6 tion is a foreign corporation, or 

7 ‘‘(ii) in the case of any transferee’s 

8 agent, such agent has actual knowledge 

9 that such affidavit is false, 

10 such agent shall so notify the transferee at such 

11 time and in such form and manner as the Sec12 retary may require by regulations. 

13 ‘‘(D) FAILURE TO FURNISH NOTICE.— 

14 ‘‘(i) IN GENERAL.—If any transferor’s 

15 agent or transferee’s agent is required by 

16 subparagraph (C) to furnish notice, but 

17 fails to furnish such notice at such time or 

18 times and in such manner as may be re19 quired by regulations, such agent shall 

20 have the same duty to deduct and withhold 

21 that the transferee would have had if such 

22 agent had complied with subparagraph 

23 (C). 

24 ‘‘(ii) LIABILITY LIMITED TO AMOUNT

25 OF COMPENSATION.—An agent’s liability 


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1 under clause (i) shall be limited to the 

2 amount of compensation the agent derives 

3 from the transaction. 

4 ‘‘(E) TRANSFEROR’S AGENT.—For pur5 poses of this paragraph, the term ‘transferor’s 

6 agent’ means any person who represents the 

7 transferor— 

8 ‘‘(i) in any negotiation with the trans9 feree or any transferee’s agent related to 

10 the transaction, or 

11 ‘‘(ii) in settling the transaction. 

12 ‘‘(F) TRANSFEREE’S AGENT.—For pur13 poses of this paragraph, the term ‘transferee’s 

14 agent’ means any person who represents the 

15 transferee— 

16 ‘‘(i) in any negotiation with the trans17 feror or the transferor’s agent related to 

18 the transaction, or 

19 ‘‘(ii) in settling the transaction. 

20 ‘‘(G) SETTLEMENT OFFICER NOT TREATED

21 AS TRANSFEROR’S AGENT.—For purposes of 

22 this paragraph, a person shall not be treated as 

23 a transferor’s agent or transferee’s agent with 

24 respect to any transaction merely because such 


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1 person performs 1 or more of the following 

2 acts: 

3 ‘‘(i) The receipt and the disbursement 

4 of any portion of the consideration for the 

5 transaction. 

6 ‘‘(ii) The recording of any document 

7 in connection with the transaction.’’. 

8 (C) Section 1446(f)(4) of such Code is 

9 amended— 

10 (i) by inserting ‘‘or if any transferor’s 

11 agent or transferee’s agent fails to with12 hold any amount required to be withheld 

13 under paragraph (2)(D) (determined with14 out regard to clause (ii) thereof),’’ after 

15 ‘‘withheld under paragraph (1),’’, and 

16 (ii) by striking ‘‘the amount the trans17 feree failed to withhold’’ and inserting ‘‘the 

18 amount the transferee, transferor’s agent, 

19 or transferee’s agent (as the case may be) 

20 so failed to withhold’’. 

21 (D) Section 1446(f) of such Code is 

22 amended by striking paragraph (5) and by re23 designating paragraph (6) as paragraph (5). 

24 (3) CLERICAL AMENDMENT.—The table of sec25 tions for subchapter A of chapter 3 of such Code is 


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1 amended by striking the item relating to section 

2 1445. 

3 (c) REPEAL OF SPECIAL REPORTING REQUIREMENTS

4 WITH RESPECT TO UNITED STATES REAL PROPERTY IN5 TERESTS.— 

6 (1) IN GENERAL.—Subpart A of part III of 

7 subchapter A of chapter 61 of such Code is amended 

8 by striking section 6039C. 

9 (2) CONFORMING AMENDMENT.—Section 6652 

10 of such Code is amended by striking subsection (f). 

11 (3) CLERICAL AMENDMENT.—The table of sec12 tions for subpart A of part III of subchapter A of 

13 chapter 61 of such Code is amended by striking the 

14 item relating to section 6039C. 

15 (d) EFFECTIVE DATE.— 

16 (1) IN GENERAL.—Except as otherwise pro17 vided in this subsection, the amendments made by 

18 this section shall apply to dispositions and distribu19 tions after the date of the enactment of this Act. 

20 (2) REPORTING REQUIREMENTS.— 

21 (A) IN GENERAL.—The amendments made 

22 by subsection (c) shall apply to calendar years 

23 beginning after the date of the enactment of 

24 this Act. 


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1 (B) TRANSITION RULE.—In the case of the 

2 calendar year which includes the date of the en3 actment of this Act, section 6039C of the Inter4 nal Revenue Code of 1986 shall be applied by 

5 only taking into account interests held during 

6 the portion of such calendar year which pre7 cedes the date of the enactment of this Act. 

Æ 


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