Bill
Bill > HR2198
US HR2198
To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test.
summary
Introduced
03/18/2025
03/18/2025
In Committee
03/18/2025
03/18/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test.
AI Summary
This bill amends the Internal Revenue Code of 1986 to modify the taxable REIT (Real Estate Investment Trust) subsidiary asset test by increasing the asset percentage threshold from 20% to 25%. A REIT is a company that owns, operates, or finances income-generating real estate, and it receives special tax considerations. The taxable REIT subsidiary (TRS) asset test is a regulatory provision that limits the amount of assets a REIT can hold in a taxable subsidiary. By raising the asset percentage from 20% to 25%, the bill gives REITs more flexibility in how they structure their subsidiary holdings. The amendment will take effect for taxable years beginning after December 31, 2025, which provides real estate investment entities advance notice of the change and time to adjust their financial structures accordingly.
Committee Categories
Budget and Finance
Sponsors (20)
Mike Kelly (R)*,
Vern Buchanan (R),
Mike Carey (R),
Danny Davis (D),
Suzan DelBene (D),
Ron Estes (R),
Randy Feenstra (R),
Brian Fitzpatrick (R),
Kevin Hern (R),
David Kustoff (R),
Darin LaHood (R),
Blake Moore (R),
Gwen Moore (D),
Nathaniel Moran (R),
Greg Murphy (R),
Jimmy Panetta (D),
Brad Schneider (D),
Adrian Smith (R),
Tom Suozzi (D),
Claudia Tenney (R),
Last Action
Referred to the House Committee on Ways and Means. (on 03/18/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/2198/all-info |
| BillText | https://www.congress.gov/119/bills/hr2198/BILLS-119hr2198ih.pdf |
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