To amend the Internal Revenue Code of 1986 to restore the taxable REIT subsidiary asset test.

# HR 2198 Summary **What the Bill Does:** This bill would change tax rules for REITs (Real Estate Investment Trusts), which are companies that own and manage real estate properties. Specifically, it would restore an "asset test" that limits how much of a REIT's assets can be held through a taxable REIT subsidiary—a special type of subsidiary company. The bill would effectively tighten restrictions on how REITs structure their operations and investments. **Who It Affects:** The bill primarily affects REIT companies and their investors, as well as real estate businesses that use the REIT structure.

It could also indirectly impact real estate projects and commercial property development, since REITs finance and operate many of these ventures. Investors in REIT stocks and mutual funds might see changes to how these investments operate. **Current Status:** The bill was introduced by Representative Mike Kelly (R-PA) in the 119th Congress and is currently in committee, meaning it has not yet been debated or voted on by the full House of Representatives. No significant action has been taken on the measure to date.