[Congressional Record Volume 158, Number 70 (Wednesday, May 16, 2012)]
[Extensions of Remarks]
[Page E821]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


H.R. 5746, A BILL TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO MODIFY 
   CERTAIN RULES APPLICABLE TO REAL ESTATE INVESTMENT TRUSTS; TO THE 
                      COMMITTEE ON WAYS AND MEANS

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                        Wednesday, May 16, 2012

  Mr. NEAL. Mr. Speaker, I rise today to highlight a bill that I'm 
introducing with my good friend and colleague from Ohio, Representative 
Tiberi, the Update and Streamline REIT Act (or U.S. REIT Act). I think 
it's important to note that the precursor to today's REITs began as 
Massachusetts business trusts over a hundred years ago. In 1960, an Act 
of Congress democratized investment in real estate, an asset class that 
had traditionally only been available to institutional investors and 
the wealthy, by authorizing the creation of REITs, widely-held entities 
that own and operate large-scale, income-producing real estate.
  Since the Congressional authorization of REITs in 1960, Congress 
periodically has updated the REIT rules in a bipartisan manner to 
enable the industry to adapt to a changing marketplace and to evolve 
consistent with its original mandate. The U.S. REIT Act would continue 
that tradition.
  Among other things, consistent with a provision in the Obama 
Administration's FY 2012 and FY 2013 Budgets, and Congressional repeal 
of a similar rule for publicly offered mutual funds in 2010, the U.S. 
REIT Act would repeal the preferential dividend rule for ``publicly 
offered'' REITs. Publicly traded REITs as a whole have invested over 
$18 billion to date in a variety of Massachusetts properties, including 
malls, office buildings, health care, hotel, self-storage and other 
properties. As a former mayor, I recognize that these companies and 
their tenants are the bedrock of local economies, improving 
communities, advertising locally, and generating property and sales 
taxes that support local schools districts and first responders.
  I am proud to have been a co-sponsor of legislation over the years 
that have refined the REIT rules to ensure that REITs can continue to 
provide the benefits envisioned by Congress to investors from all walks 
of life, and I am proud to co-sponsor this legislation.
  I urge my colleagues to join me in supporting the U.S. REIT Act.

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