USING REITS FOR INFRASTRUCTURE REVITALIZATION AND DEVELOPMENT-PART 1

The first part of a two-part article discusses the use of real estate investment trusts (REITs) for infrastructure revitalization and development. Large deficits are being incurred by federal, state, and local governments, notwithstanding the $130 billion of funding earmarked in The American Recover...

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Bibliographic Details
Published in:Real Estate Taxation 2009-04, Vol.36 (3), p.100
Main Author: Aksamit, Roger D
Format: Article
Language:English
Subjects:
American Recovery & Reinvestment Act 2009-US
Bailouts
Bridges
Capital expenditures
Federal legislation
Infrastructure
Internal Revenue Code
Letter rulings
Mortgages
Property taxes
REITs
Renovation & restoration
Roads & highways
Taxation
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Summary:The first part of a two-part article discusses the use of real estate investment trusts (REITs) for infrastructure revitalization and development. Large deficits are being incurred by federal, state, and local governments, notwithstanding the $130 billion of funding earmarked in The American Recovery and Re-Investment Act of 2009 (Stimulus Bill) for infrastructure and energy. As most of the categories of infrastructure assets are either real estate or improvements to real estate, it is the author's belief that REITs may offer a particularly desirable vehicle for raising and investing capital due to the effective single level of taxation that REITs offer. In addition to the legislation in the REIT area, the IRS has slowly expanded through the rulings process what is considered to be real estate under Section 856. The expansion of the definition of real property in recent private letter rulings is likely to create new opportunities for REITs to hold infrastructure assets.
ISSN:1538-3792