The “Parity for Non-Traded REITs Act” was introduced in the U.S. House of Representatives on Friday.
The legislation — which extends the Foreign Investment in Real Property Tax Act (FIRPTA) exception currently available to foreign shareholders of publicly traded REITs to foreign shareholders of public, non-traded REITs — will inject additional capital into the commercial real estate market at a critical time in the U.S. economic recovery, supporting state and local tax revenue, job growth and investments in workforce housing.
FIRPTA is a tax law that imposes U.S. income tax withholding requirements on foreign persons investing in US assets. Since its inception, the bill has been met with bipartisan criticism for creating barriers to foreign investment in U.S. real estate. Congress unintentionally excluded public, non-traded REITs from several important changes made to FIRPTA as part of a 2015 reform package.
The “Parity for Non-Traded REITs Act” woul