Title: Ending Tax Breaks for Private Prisons Act
Policy area: Taxation

Summary:
Ending Tax Breaks for Private Prisons Act
This bill amends the Internal Revenue Code to exclude from the definition of "taxable REIT (Real Estate Investment Trust) subsidiary" any corporation which directly or indirectly: (1) operates or manages a prison facility or provides services at or in connection with a prison facility; or (2) provides to any other person (under a franchise, license, or otherwise) rights to any brand name under which any prison facility is operated, subject to specified exceptions.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2075 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 2075

  To amend the Internal Revenue Code of 1986 to exclude corporations 
   operating prisons from the definition of taxable REIT subsidiary.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 6, 2017

   Mr. Wyden introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to exclude corporations 
   operating prisons from the definition of taxable REIT subsidiary.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ending Tax Breaks for Private 
Prisons Act''.

SEC. 2. EXCLUSION OF CORPORATIONS OPERATING PRISON FACILITIES FROM 
              DEFINITION OF TAXABLE REIT FACILITY.

    (a) In General.--Section 856(l)(3) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                    ``(A) any corporation which--
                            ``(i) directly or indirectly operates or 
                        manages a lodging facility or a health care 
                        facility, or
                            ``(ii) directly or indirectly operates or 
                        manages a prison facility or provides services 
                        at or in connection with a prison facility, 
                        and'';
            (2) in subparagraph (B), by striking ``any lodging facility 
        or health care facility'' and inserting ``any lodging facility, 
        health care facility, or prison facility''; and
            (3) by striking the last sentence and inserting the 
        following: ``Subparagraph (B) shall not apply to rights 
        provided to an eligible independent contractor to operate or 
        manage a lodging facility, a health care facility, or a prison 
        facility if such rights are held by such corporation as a 
        franchisee, licensee, or in a similar capacity and such lodging 
        facility, health care facility, or prison facility is either 
        owned by such corporation or is leased to such corporation from 
        the real estate investment trust.''.
    (b) Definition of Prison Facility.--Section 856(l)(4) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(C) Prison facility.--The term `prison facility' 
                means any correctional, detention, or penal 
                facility.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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