Kevin Brady: “We're all aware of the ongoing turbulence in the credit markets that has made it very difficult for owners of real…”

“We're all aware of the ongoing turbulence in the credit markets that has made it very difficult for owners of real estate, including commercial real estate, to obtain financing for new projects or to refinance existing ones. Transaction volumes have fallen, asset values have fallen, and rents have fallen. Our real estate markets are desperate for infusion of new capital. One significant source of capital investment for these projects is foreign investors. It's important for Congress to periodically review the restrictions that the U.S. Tax Code imposes on foreign investment to ensure that these restrictions do not unnecessarily discourage this investment, especially during times like this. Earlier this year, the gentleman from Ohio (Mr. Tiberi) worked with the gentleman from New York (Mr. Crowley) to introduce H.R. 4539, legislation that would modify some of the tax rules in this area collectively known as FIRPTA, the Foreign Investment in Real Property Tax Act. Today's legislation based on their earlier bill would remove an unnecessary barrier to foreign investment in the U.S. real estate market, providing increased liquidity that is sorely needed.”