The Senate on Friday passed a $622 billion tax package extending many tax provisions set to expire, following House approval on Thursday. Some extensions were made permanent while others only add a year or more.
Several provisions changed tax arrangements for real estate investment trusts. One provision expected to generate $1.9 billion in new tax revenue allows for tax-free real estate spinoffs only if the distributing and controlling corporation are REITs; another limits to 20% a REIT’s ownership of taxable REIT subsidiaries. The bill has a new tax exemption for foreign pension plan investors and a higher tax exemption on the sale of holdings for shareholders of publicly traded REITs owning 10% or less.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, said in a statement that the tax package will “lay the groundwork for comprehensive tax reform moving forward.”