Retail Revitalization Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8805 To amend the Internal Revenue Code of 1986 to modify rules related to rents received by real estate investment trusts from related parties. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 20, 2020 Mr. SCHNEIDER (for himself and Mr. LAHOOD) 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 modify rules related to rents received by real estate investment trusts from related parties. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Retail Revitalization 4 Act of 2020’’. 5 SEC. 2. MODIFICATION OF RULES RELATED TO RENTS RE- 6 CEIVED BY REAL ESTATE INVESTMENT 7 TRUSTS FROM RELATED PARTIES. 8 (a) INCREASE IN PERMISSIBLE OWNERSHIP PER- 9 CENTAGE.—Section 856(d)(2)(B) of the Internal Revenue 10 VerDate Sep 11 2014 04:19 Dec 02, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8805.IH H8805 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 8805 IH Code of 1986 is amended by striking ‘‘10 percent or 1 more’’ each place it appears and inserting ‘‘more than 50 2 percent’’. 3 (b) MODIFICATION OF RULES FOR CONSTRUCTIVE 4 OWNERSHIP OF STOCK.—Section 856(d)(5) of such Code 5 is amended— 6 (1) by striking ‘‘ ‘10 percent’ shall be sub- 7 stituted for ‘50 percent’ ’’ in subparagraph (A) and 8 inserting ‘‘ ‘more than 50 percent’ shall be sub- 9 stituted for ‘50 percent or more’ ’’, 10 (2) by striking ‘‘25 percent or more’’ in sub- 11 paragraph (B) and inserting ‘‘more than 50 per- 12 cent’’, and 13 (3) by striking ‘‘and’’ at the end of subpara- 14 graph (A), by striking the period at the end of sub- 15 paragraph (B) and inserting ‘‘, and’’, and by adding 16 at the end the following new subparagraph: 17 ‘‘(C) section 318(a)(5)(C) shall be applied 18 by substituting ‘paragraph (2) or (3)’ for ‘para- 19 graph (2)’.’’. 20 (c) MODIFICATION OF RULES FOR TAXABLE REIT 21 SUBSIDIARIES.—Section 856(d)(8)(A)(i) of such Code is 22 amended by striking ‘‘90 percent’’ and inserting ‘‘50 per- 23 cent’’. 24 VerDate Sep 11 2014 04:19 Dec 02, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8805.IH H8805 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 8805 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years ending after the 2 date of the enactment of this Act. 3 Æ VerDate Sep 11 2014 04:19 Dec 02, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H8805.IH H8805 kjohnson on DSK79L0C42PROD with BILLS