Title: Invest in America Act
Policy area: Taxation

Summary:
Invest in America Act
This bill repeals several tax provisions that were included in the Foreign Investment in Real Property Tax Act of 1980. The bill repeals provisions that imposed (1) capital gains taxes on dispositions of investments in U.S. real property by foreign citizens, and (2) related tax withholding and reporting requirements.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2210 Introduced in House (IH)]

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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.

    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 ``Invest in America Act''.

SEC. 2. REPEAL OF AMENDMENTS MADE BY THE FOREIGN INVESTMENT IN REAL 
              PROPERTY TAX ACT OF 1980 (``FIRPTA'').

    (a) Repeal of Capital Gains Tax on Disposition of Investments in 
United States Real Property by Foreign Citizens.--
            (1) In general.--Subpart D of part II of subchapter N of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        striking section 897.
            (2) Conforming amendments.--
                    (A) Section 852(b)(3) of such Code is amended by 
                striking subparagraph (E).
                    (B) Section 857(b)(3) of such Code is amended by 
                striking subparagraph (E) and by redesignating 
                subparagraph (F) as subparagraph (E).
                    (C) Section 861(a)(5) of such Code is amended to 
                read as follows:
            ``(5) Sale or exchange of real property.--Gains, profits, 
        and income from the sale or exchange of interests in real 
        property (as defined in section 856(c)(5)(C), except that such 
        term shall include mineral, oil, and gas royalty interests) 
        located in the United States.''.
                    (D) Section 862(a) of such Code is amended by 
                adding ``and'' at the end of paragraph (7), by striking 
                paragraph (8), and by redesignating paragraph (9) as 
                paragraph (8).
                    (E) Section 864(c)(8) of such Code is amended by 
                striking subparagraph (C) and by redesignating 
                subparagraphs (D) and (E) as subparagraphs (C) and (D), 
                respectively.
                    (F) Section 871(h)(4)(C)(v)(I) of such Code is 
                amended by striking ``other than property described in 
                section 897(c)(1) or (g)''.
                    (G) Section 871(k)(2) of such Code is amended by 
                striking subparagraph (E).
                    (H) Section 871(n) of such Code is amended by 
                striking paragraph (7).
                    (I) Section 882(a) of such Code is amended by 
                striking paragraph (3).
                    (J) Section 884(d)(2) of such Code is amended by 
                striking subparagraph (C) and by redesignating 
                subparagraphs (D) and (E) as subparagraphs (C) and (D), 
                respectively.
                    (K) Section 1125 of the Foreign Investment in Real 
                Property Tax Act of 1980 is amended by striking 
                subsections (c) and (d).
            (3) Clerical amendment.--The table of sections for subpart 
        D of part II of subchapter N of chapter 1 of such Code is 
        amended by striking the item relating to section 897.
    (b) Repeal of Withholding of Tax on Dispositions of United States 
Real Property Interests.--
            (1) In general.--Subchapter A of chapter 3 of such Code is 
        amended by striking section 1445.
            (2) Conforming amendments.--
                    (A) Section 1446(f)(2)(A) of such Code is amended 
                by striking ``is not a foreign person'' and inserting 
                ``is a United States person''.
                    (B) Section 1446(f)(2) of such Code is amended--
                            (i) by striking ``section 1445(d)'' in 
                        subparagraph (B)(i) and inserting 
                        ``subparagraph (C)''; and
                            (ii) by striking subparagraph (C) and 
                        inserting the following new subparagraphs:
                    ``(C) Notice of false affidavit; foreign 
                corporations.--If the transferor furnishes the 
                transferee an affidavit described in subparagraph (A), 
                and
                            ``(i) in the case of any transferor's 
                        agent--
                                    ``(I) such agent has actual 
                                knowledge that such affidavit is false, 
                                or
                                    ``(II) in the case of an affidavit 
                                described in subparagraph (A) furnished 
                                by a corporation, such corporation is a 
                                foreign corporation, or
                            ``(ii) in the case of any transferee's 
                        agent, such agent has actual knowledge that 
                        such affidavit is false,
                such agent shall so notify the transferee at such time 
                and in such form and manner as the Secretary may 
                require by regulations.
                    ``(D) Failure to furnish notice.--
                            ``(i) In general.--If any transferor's 
                        agent or transferee's agent is required by 
                        subparagraph (C) to furnish notice, but fails 
                        to furnish such notice at such time or times 
                        and in such manner as may be required by 
                        regulations, such agent shall have the same 
                        duty to deduct and withhold that the transferee 
                        would have had if such agent had complied with 
                        subparagraph (C).
                            ``(ii) Liability limited to amount of 
                        compensation.--An agent's liability under 
                        clause (i) shall be limited to the amount of 
                        compensation the agent derives from the 
                        transaction.
                    ``(E) Transferor's agent.--For purposes of this 
                paragraph, the term `transferor's agent' means any 
                person who represents the transferor--
                            ``(i) in any negotiation with the 
                        transferee or any transferee's agent related to 
                        the transaction, or
                            ``(ii) in settling the transaction.
                    ``(F) Transferee's agent.--For purposes of this 
                paragraph, the term `transferee's agent' means any 
                person who represents the transferee--
                            ``(i) in any negotiation with the 
                        transferor or the transferor's agent related to 
                        the transaction, or
                            ``(ii) in settling the transaction.
                    ``(G) Settlement officer not treated as 
                transferor's agent.--For purposes of this paragraph, a 
                person shall not be treated as a transferor's agent or 
                transferee's agent with respect to any transaction 
                merely because such person performs 1 or more of the 
                following acts:
                            ``(i) The receipt and the disbursement of 
                        any portion of the consideration for the 
                        transaction.
                            ``(ii) The recording of any document in 
                        connection with the transaction.''.
                    (C) Section 1446(f)(4) of such Code is amended--
                            (i) by inserting ``or if any transferor's 
                        agent or transferee's agent fails to withhold 
                        any amount required to be withheld under 
                        paragraph (2)(D) (determined without regard to 
                        clause (ii) thereof),'' after ``withheld under 
                        paragraph (1),'', and
                            (ii) by striking ``the amount the 
                        transferee failed to withhold'' and inserting 
                        ``the amount the transferee, transferor's 
                        agent, or transferee's agent (as the case may 
                        be) so failed to withhold''.
                    (D) Section 1446(f) of such Code is amended by 
                striking paragraph (5) and by redesignating paragraph 
                (6) as paragraph (5).
            (3) Clerical amendment.--The table of sections for 
        subchapter A of chapter 3 of such Code is amended by striking 
        the item relating to section 1445.
    (c) Repeal of Special Reporting Requirements With Respect to United 
States Real Property Interests.--
            (1) In general.--Subpart A of part III of subchapter A of 
        chapter 61 of such Code is amended by striking section 6039C.
            (2) Conforming amendment.--Section 6652 of such Code is 
        amended by striking subsection (f).
            (3) Clerical amendment.--The table of sections for subpart 
        A of part III of subchapter A of chapter 61 of such Code is 
        amended by striking the item relating to section 6039C.
    (d) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        dispositions and distributions after the date of the enactment 
        of this Act.
            (2) Reporting requirements.--
                    (A) In general.--The amendments made by subsection 
                (c) shall apply to calendar years beginning after the 
                date of the enactment of this Act.
                    (B) Transition rule.--In the case of the calendar 
                year which includes the date of the enactment of this 
                Act, section 6039C of the Internal Revenue Code of 1986 
                shall be applied by only taking into account interests 
                held during the portion of such calendar year which 
                precedes the date of the enactment of this Act.
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