U.S. Rep. Darin LaHood (R-IL) last week reintroduced the bipartisan Retail Revitalization Act, which would update tax provisions to allow real estate investment trusts (REITs) to invest more in their retail tenants during the ongoing public health crisis, according to the congressman’s office.
“The COVID-19 pandemic and state-mandated closures have decimated Illinois small businesses, particularly our retail industry,” Rep. LaHood said on Feb. 4. “Retailers need more funding as they work to recover from the pandemic and this legislation will help infuse critical private capital into small businesses struggling.”
Rep. LaHood joined U.S. Rep. Brad Schneider (D-IL) to introduce the bill, H.R. 840.
If enacted, the measure would amend the current REIT tax regime to increase the capacity of a REIT to own the equity of a tenant from 10 percent to 50 percent, and would make corresponding changes to the limitation on space that a REIT can lease to its taxable REIT subsidiary, among other provisions, according to a bill summary provided by Rep. LaHood’s office.
The Real Estate Roundtable, Brookfield Property Group, and Simon Property Group endorsed the bill, which previously was introduced by Rep. LaHood and his colleague in November 2020. The same-named H.R. 8805 expired at the end of the 116th Congress, prompting its reintroduction last week.