HB1012 Summary

• Disallows the federal income tax deduction for dividends paid by real estate investment trusts (REITs) for taxable years beginning after December 31, 2017.

• Maintains an exception allowing the deduction for dividends generated from REIT-owned housing that is affordable to households with incomes at or below 140% of the median family income as determined by the U.S. Department of Housing and Urban Development.

• Estimated to generate approximately $36,000,000 in additional annual state corporate income tax revenue based on 2014 data.

• The disallowance is temporary and sunset, with the law repealing on December 31, 2032, and reverting to prior law on that date.

• Takes effect on July 1, 2030, and applies to taxable years beginning after December 31, 2017.