I 111th CONGRESS 2d Session H. R. 5901 IN THE HOUSE OF REPRESENTATIVES July 28, 2010 Mr. Crowley introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL 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.

1.

Short title

This Act may be cited as the Real Estate Jobs and Investment Act of 2010.

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.

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.

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.