PRIA Logo™
119-s-1334119th CongressWALLET

A bill to amend the Internal Revenue Code of 1986 to increase the percentage limitation on assets of real estate investment trusts which may be held in taxable REIT subsidiaries.

Sponsored By: Senator Tillis, Thomas [R-NC]

Introduced

Summary

Raises the maximum share of a REIT's assets that can be placed in taxable REIT subsidiaries from 20% to 25%. The bill would amend Internal Revenue Code section 856(c)(4)(B)(ii) to replace the current 20 percent threshold with a 25 percent threshold, allowing a real estate investment trust to hold up to a quarter of its assets in taxable REIT subsidiaries. The change would apply to taxable years beginning after December 31, 2025. The bill makes no other changes to the Internal Revenue Code.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Higher REIT asset limit for investors

This bill would let real estate investment trusts (REITs) hold more assets in taxable subsidiaries. It would raise the cap from 20% to 25%. The change would apply to tax years beginning after December 31, 2025 (so starting in 2026). If enacted, REITs and their investors could move a larger share of assets into those subsidiaries.

Sponsors & CoSponsors

Sponsor

Tillis, Thomas [R-NC]

NC • R

Cosponsors

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 4/8/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation