Incentivizing Foreign Investment to Upgrade America's Infrastructure Act of 2014

Incentivizing Foreign Investment to Upgrade America's Infrastructure Act of 2014 - Amends the Internal Revenue Code to exempt a qualified foreign pension fund from taxation of gain or loss from, or tax withholding requirements on, the disposition of U.S. real property interests. Defines "qualified foreign pension fund" as any trust, corporation, or other organization or arrangement that: (1) is created or organized outside the United States; (2) is established to provide employee retirement or pension benefits; (3) does not have a single participant or beneficiary with a right to more than 5% of its assets; (4) is subject to regulation and tax reporting requirements in the country in which it is established or operates; and (5) is provided favorable tax treatment by the laws of the country in which it is established or operates.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5251 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5251

 To amend the Internal Revenue Code of 1986 to exempt foreign pensions 
    from dispositions of investment in United States real property.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2014

  Mr. Owens introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exempt foreign pensions 
    from dispositions of investment in United States real property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Incentivizing Foreign Investment to 
Upgrade America's Infrastructure Act of 2014''.

SEC. 2. EXEMPTION OF FOREIGN PENSIONS FROM DISPOSITIONS OF INVESTMENT 
              IN UNITED STATES REAL PROPERTY.

    (a) In General.--Section 897 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(k) Special Rule for Foreign Pensions.--
            ``(1) In general.--Subsection (a) shall not apply in the 
        case of a qualified foreign pension fund.
            ``(2) Qualified foreign pension fund.--For purposes of this 
        subsection, the term `qualified foreign pension fund' means any 
        trust, corporation, or other organization or arrangement--
                    ``(A) which is created or organized outside of the 
                United States,
                    ``(B) which is established to provide retirement or 
                pension benefits to participants or beneficiaries that 
                are current or former employees (or persons designated 
                by such employees) of one or more employers in 
                consideration for services rendered,
                    ``(C) which does not have a single participant or 
                beneficiary with a right to more than 5 percent of its 
                assets,
                    ``(D) which is subject to government regulation and 
                provides annual information reporting about its 
                beneficiaries to the relevant tax authorities in the 
                country in which it is established or operates, and
                    ``(E) with respect to which, under the laws of the 
                country in which it is established or operates--
                            ``(i) contributions to such trust, 
                        corporation, organization, or arrangement which 
                        would otherwise be subject to tax under such 
                        laws are deductible or excluded from the gross 
                        income of such entity or taxed at a reduced 
                        rate, or
                            ``(ii) taxation of any investment income of 
                        such trust, corporation, organization, or 
                        arrangement is deferred or such income is taxed 
                        at a reduced rate.
            ``(3) Regulations.--The Secretary may prescribe such 
        regulations as are necessary to carry out the purposes of this 
        subsection.''.
    (b) Withholding.--Paragraph (3) of section 1445(f) of such Code is 
amended by adding at the end the following: ``Such term shall not 
include a qualified foreign pension fund (as defined in section 
897(k)).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to dispositions of United States real property interests more 
than 90 days after the date of the enactment of this Act.
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