1. Short title
This Act may be cited as the “Retail Revitalization Act of 2021”.
Retail Revitalization Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to modify rules related to rents received by real estate investment trusts from related parties.
2. Modification of rules related to rents received by real estate investment trusts from related parties
Increase in permissible ownership percentage— Section 856(d)(2)(B) of the Internal Revenue Code of 1986 is amended by striking “10 percent or more” each place it appears and inserting “more than 50 percent”.
Modification of rules for constructive ownership of stock— Section 856(d)(5) of such Code is amended—
by striking ““10 percent” shall be substituted for “50 percent”” in subparagraph (A) and inserting ““more than 50 percent” shall be substituted for “50 percent or more””,
by striking “25 percent or more” in subparagraph (B) and inserting “more than 50 percent”, and
by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by adding at the end the following new subparagraph:
“(C) section 318(a)(5)(C) shall be applied by substituting “paragraph (2) or (3)” for “paragraph (2)”.”
Modification of rules for taxable REIT subsidiaries— Section 856(d)(8)(A)(i) of such Code is amended by striking “90 percent” and inserting “50 percent”.
Effective date— The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.