Ending Tax Breaks for Private Prisons Act

Bill: 115-s-2075
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2017-11-06
Policy area: Taxation
Subjects: Corporate finance and management

Correctional facilities and imprisonment

Financial services and investments

Income tax rates

Real estate business
Latest action: action_date: 2017-11-06
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2017-11-06
action_desc: Introduced in Senate
text: <p><b>Ending Tax Breaks for Private Prisons Act </b></p> <p>This bill amends the Internal Revenue Code to exclude from the definition of &quot;taxable REIT (Real Estate Investment Trust) subsidiary&quot; 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. </p>

tv_txt: II 115th CONGRESS 1st Session S. 2075 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.

1. Short title This Act may be cited as the Ending Tax Breaks for Private Prisons Act . 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.