[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5901 Engrossed in House (EH)]

111th CONGRESS
  2d Session
                                H. R. 5901

_______________________________________________________________________

                                 AN ACT


 
 To amend the Internal Revenue Code of 1986 to exempt certain stock of 
  real estate investment trusts from the tax on foreign investment in 
     United States real property interests, and for other purposes.

    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 ``Real Estate Jobs and Investment Act 
of 2010''.

SEC. 2. EXCEPTION FROM FIRPTA FOR CERTAIN STOCK OF REAL ESTATE 
              INVESTMENT TRUSTS.

    (a) In General.--Paragraph (3) of section 897(c) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking all that precedes ``If any class'' and 
        inserting the following:
            ``(3) Exceptions for certain stock dispositions.--
                    ``(A) Exception for stock regularly traded on 
                established securities markets.--'',
            (2) by adding at the end of subparagraph (A) (as added by 
        paragraph (1)) the following: ``In the case of any class of 
        stock of a real estate investment trust, the preceding sentence 
        shall be applied by substituting `10 percent' for `5 
        percent'.'', and
            (3) by adding at the end the following new subparagraph:
                    ``(B) Exception for certain stock in real estate 
                investment trusts.--
                            ``(i) In general.--Stock of a real estate 
                        investment trust held by a qualified 
                        shareholder shall not be treated as a United 
                        States real property interest except to the 
                        extent that an investor in the qualified 
                        shareholder holds (directly or indirectly 
                        through the qualified shareholder) more than 10 
                        percent of the stock of such real estate 
                        investment trust.
                            ``(ii) Qualified shareholder.--For purposes 
                        of this subparagraph, the term `qualified 
                        shareholder' means a shareholder--
                                    ``(I) which would be eligible for a 
                                reduced rate of withholding under any 
                                income tax treaty of the United States 
                                with respect to ordinary dividends paid 
                                by the real estate investment trust 
                                even if such shareholder holds more 
                                than 10 percent of the stock of such 
                                real estate investment trust, and
                                    ``(II) whose principal class of 
                                interests is listed and regularly 
                                traded on one or more recognized stock 
                                exchanges (as defined in the relevant 
                                income tax treaty referred to in 
                                subclause (I)).''.
    (b) Distributions of Real Estate Investment Trusts.--Paragraph (1) 
of section 897(h) of such Code is amended--
            (1) by inserting ``(10 percent in the case of stock of a 
        real estate investment trust)'' after ``5 percent of such class 
        of stock'', and
            (2) by inserting ``, and any distribution to a qualified 
        shareholder (as defined in subsection (c)(3)(B)(ii)) shall not 
        be treated as gain recognized from the sale or exchange of a 
        United States real property interest to the extent that the 
        stock of the real estate investment trust held by such 
        qualified shareholder is not treated as a United States real 
        property interest under subsection (c)(3)(B)'' before the 
        period at the end.
    (c) Conforming Amendment.--Subparagraph (C) of section 897(c)(6) of 
such Code is amended by striking ``more than 5 percent'' and inserting 
``more than a particular percentage''.
    (d) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to dispositions 
        made after the date of the enactment of this Act.
            (2) Distributions of real estate investment trusts.--The 
        amendments made by subsection (b) shall apply to distributions 
        made after the date of the enactment of this Act.

SEC. 3. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF CERTAIN 
              FEDERAL CONTRACTORS.

    (a) In General.--Subsection (f) of section 6330 of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
paragraph (2), by inserting ``or'' at the end of paragraph (3), and by 
inserting after paragraph (3) the following new paragraph:
            ``(4) the Secretary has served a Federal contractor 
        levy,''.
    (b) Federal Contractor Levy.--Subsection (h) of section 6330 of 
such Code is amended--
            (1) by striking all that precedes ``any levy in connection 
        with the collection'' and inserting the following:
    ``(h) Definitions Related to Exceptions.--For purposes of 
subsection (f)--
            ``(1) Disqualified employment tax levy.--A disqualified 
        employment tax levy is''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Federal contractor levy.--A Federal contractor levy 
        is any levy if the person whose property is subject to the levy 
        (or any predecessor of such person) is a Federal contractor.''.
    (c) Conforming Amendment.--The heading of subsection (f) of section 
6330 of such Code is amended by striking ``Jeopardy and State Refund 
Collection'' and inserting ``Exceptions''.
    (d) Effective Date.--The amendments made by this section shall 
apply to levies issued after December 31, 2010.

SEC. 4. PAYGO COMPLIANCE.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives July 30, 2010.

            Attest:

                                                                 Clerk.
111th CONGRESS

  2d Session

                               H. R. 5901

_______________________________________________________________________

                                 AN ACT

 To amend the Internal Revenue Code of 1986 to exempt certain stock of 
  real estate investment trusts from the tax on foreign investment in 
     United States real property interests, and for other purposes.