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. 
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 ‘‘Incentivizing Foreign 
Investment to Upgrade America’s Infrastructure Act of 
2014’’. 
VerDate Mar 15 2010 
00:17 Aug 01, 2014
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5251.IH
H5251
jbell on DSK4SPTVN1PROD with BILLS
SEC. 2. EXEMPTION OF FOREIGN PENSIONS FROM DISPOSI-
TIONS OF INVESTMENT IN UNITED STATES 
REAL PROPERTY. 
(a) IN GENERAL.—Section 897 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(k) SPECIAL RULE FOR FOREIGN PENSIONS.— 
‘‘(1) IN
GENERAL.—Subsection (a) shall not 
apply in the case of a qualified foreign pension fund. 
‘‘(2) QUALIFIED
FOREIGN
PENSION
FUND.— 
For purposes of this subsection, the term ‘qualified 
foreign pension fund’ means any trust, corporation, 
or other organization or arrangement— 
‘‘(A) which is created or organized outside 
of the United States, 
‘‘(B) which is established to provide retire-
ment or pension benefits to participants or 
beneficiaries that are current or former employ-
ees (or persons designated by such employees) 
of one or more employers in consideration for 
services rendered, 
‘‘(C) which does not have a single partici-
pant or beneficiary with a right to more than 
5 percent of its assets, 
‘‘(D) which is subject to government regu-
lation and provides annual information report-
VerDate Mar 15 2010 
00:17 Aug 01, 2014
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5251.IH
H5251
jbell on DSK4SPTVN1PROD with BILLS
ing about its beneficiaries to the relevant tax 
authorities in the country in which it is estab-
lished or operates, and 
‘‘(E) with respect to which, under the laws 
of the country in which it is established or oper-
ates— 
‘‘(i) contributions to such trust, cor-
poration, organization, or arrangement 
which would otherwise be subject to tax 
under such laws are deductible or excluded 
from the gross income of such entity or 
taxed at a reduced rate, or 
‘‘(ii) taxation of any investment in-
come of such trust, corporation, organiza-
tion, or arrangement is deferred or such 
income is taxed at a reduced rate. 
‘‘(3) REGULATIONS.—The Secretary may pre-
scribe such regulations as are necessary to carry out 
the purposes of this subsection.’’. 
(b) WITHHOLDING.—Paragraph (3) of section 
1445(f) of such Code is amended by adding at the end 
the following: ‘‘Such term shall not include a qualified for-
eign pension fund (as defined in section 897(k)).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to dispositions of United States 
VerDate Mar 15 2010 
02:33 Aug 01, 2014
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5251.IH
H5251
jbell on DSK4SPTVN1PROD with BILLS