I 

113TH CONGRESS 

2D SESSION H. R. 5251 

To amend the Internal Revenue Code of 1986 to exempt foreign pensions 

from dispositions of investment in United States real property. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2014 

Mr. OWENS 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 exempt 

foreign pensions from dispositions of 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 ‘‘Incentivizing Foreign 

5 Investment to Upgrade America’s Infrastructure Act of 

6 2014’’. 


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1 SEC. 2. EXEMPTION OF FOREIGN PENSIONS FROM DISPOSI2 TIONS OF INVESTMENT IN UNITED STATES 

3 REAL PROPERTY. 

4 (a) IN GENERAL.—Section 897 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(k) SPECIAL RULE FOR FOREIGN PENSIONS.— 

8 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

9 apply in the case of a qualified foreign pension fund. 

10 ‘‘(2) QUALIFIED FOREIGN PENSION FUND.— 

11 For purposes of this subsection, the term ‘qualified 

12 foreign pension fund’ means any trust, corporation, 

13 or other organization or arrangement— 

14 ‘‘(A) which is created or organized outside 

15 of the United States, 

16 ‘‘(B) which is established to provide retire17 ment or pension benefits to participants or 

18 beneficiaries that are current or former employ19 ees (or persons designated by such employees) 

20 of one or more employers in consideration for 

21 services rendered, 

22 ‘‘(C) which does not have a single partici23 pant or beneficiary with a right to more than 

24 5 percent of its assets, 

25 ‘‘(D) which is subject to government regu26 lation and provides annual information reportVerDate Mar 15 2010 00:17 Aug 01, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5251.IH H5251

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1 ing about its beneficiaries to the relevant tax 

2 authorities in the country in which it is estab3 lished or operates, and 

4 ‘‘(E) with respect to which, under the laws 

5 of the country in which it is established or oper6 ates— 

7 ‘‘(i) contributions to such trust, cor8 poration, organization, or arrangement 

9 which would otherwise be subject to tax 

10 under such laws are deductible or excluded 

11 from the gross income of such entity or 

12 taxed at a reduced rate, or 

13 ‘‘(ii) taxation of any investment in14 come of such trust, corporation, organiza15 tion, or arrangement is deferred or such 

16 income is taxed at a reduced rate. 

17 ‘‘(3) REGULATIONS.—The Secretary may pre18 scribe such regulations as are necessary to carry out 

19 the purposes of this subsection.’’. 

20 (b) WITHHOLDING.—Paragraph (3) of section 

21 1445(f) of such Code is amended by adding at the end 

22 the following: ‘‘Such term shall not include a qualified for23 eign pension fund (as defined in section 897(k)).’’. 

24 (c) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to dispositions of United States 


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1 real property interests more than 90 days after the date 

2 of the enactment of this Act. 

Æ 


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