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 Com-
mittee 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 jurisdic-
tion 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Real Estate Jobs and 
Investment Act of 2010’’. 
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SEC. 2. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF 
REAL ESTATE INVESTMENT TRUSTS. 
(a) IN GENERAL.—Paragraph (3) of section 897(c) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking all that precedes ‘‘If any class’’ 
and inserting the following: 
‘‘(3) EXCEPTIONS
FOR
CERTAIN
STOCK
DIS-
POSITIONS.— 
‘‘(A) EXCEPTION FOR STOCK REGULARLY 
TRADED
ON
ESTABLISHED
SECURITIES
MAR-
KETS.—’’, 
(2) by adding at the end of subparagraph (A) 
(as added by paragraph (1)) the following: ‘‘In the 
case of any class of stock of a real estate investment 
trust, the preceding sentence shall be applied by sub-
stituting ‘10 percent’ for ‘5 percent’.’’, and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) EXCEPTION FOR CERTAIN STOCK IN 
REAL ESTATE INVESTMENT TRUSTS.— 
‘‘(i) IN GENERAL.—Stock of a real es-
tate investment trust held by a qualified 
shareholder shall not be treated as a 
United States real property interest except 
to the extent that an investor in the quali-
fied shareholder holds (directly or indi-
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rectly through the qualified shareholder) 
more than 10 percent of the stock of such 
real estate investment trust. 
‘‘(ii) 
QUALIFIED
SHAREHOLDER.— 
For purposes of this subparagraph, the 
term ‘qualified shareholder’ means a share-
holder— 
‘‘(I) which would be eligible for a 
reduced rate of withholding under any 
income tax treaty of the United States 
with respect to ordinary dividends 
paid by the real estate investment 
trust even if such shareholder holds 
more than 10 percent of the stock of 
such real estate investment trust, and 
‘‘(II) whose principal class of in-
terests is listed and regularly traded 
on one or more recognized stock ex-
changes (as defined in the relevant in-
come tax treaty referred to in sub-
clause (I)).’’. 
(b) DISTRIBUTIONS OF REAL ESTATE INVESTMENT 
TRUSTS.—Paragraph (1) of section 897(h) of such Code 
is amended— 
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(1) by inserting ‘‘(10 percent in the case of 
stock of a real estate investment trust)’’ after ‘‘5 
percent of such class of stock’’, and 
(2) by inserting ‘‘, and any distribution to a 
qualified shareholder (as defined in subsection 
(c)(3)(B)(ii)) shall not be treated as gain recognized 
from the sale or exchange of a United States real 
property interest to the extent that the stock of the 
real estate investment trust held by such qualified 
shareholder is not treated as a United States real 
property interest under subsection (c)(3)(B)’’ before 
the period at the end. 
(c) CONFORMING AMENDMENT.—Subparagraph (C) 
of section 897(c)(6) of such Code is amended by striking 
‘‘more than 5 percent’’ and inserting ‘‘more than a par-
ticular percentage’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to dispositions made after the date of the 
enactment of this Act. 
(2) DISTRIBUTIONS OF REAL ESTATE INVEST-
MENT
TRUSTS.—The amendments made by sub-
section (b) shall apply to distributions made after 
the date of the enactment of this Act. 
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SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LI-
ABILITIES OF CERTAIN FEDERAL CONTRAC-
TORS. 
(a) IN GENERAL.—Subsection (f) of section 6330 of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘or’’ at the end of paragraph (2), by inserting ‘‘or’’ at 
the end of paragraph (3), and by inserting after paragraph 
(3) the following new paragraph: 
‘‘(4) the Secretary has served a Federal con-
tractor levy,’’. 
(b) FEDERAL CONTRACTOR LEVY.—Subsection (h) 
of section 6330 of such Code is amended— 
(1) by striking all that precedes ‘‘any levy in 
connection with the collection’’ and inserting the fol-
lowing: 
‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For 
purposes of subsection (f)— 
‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.— 
A disqualified employment tax levy is’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 
contractor levy is any levy if the person whose prop-
erty is subject to the levy (or any predecessor of 
such person) is a Federal contractor.’’. 
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(c) CONFORMING AMENDMENT.—The heading of 
subsection (f) of section 6330 of such Code is amended 
by striking ‘‘JEOPARDY AND STATE REFUND COLLEC-
TION’’ and inserting ‘‘EXCEPTIONS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to levies issued after December 31, 
2010. 
SEC. 4. PAYGO COMPLIANCE. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Æ 
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