RELATING TO TAXATION OF REAL ESTATE INVESTMENT TRUSTS.

HB 1273 removes a tax deduction that real estate investment trusts (REITs) currently use when they distribute dividends to investors. This change means REITs will pay taxes on a larger portion of their income, as they can no longer subtract these dividend payments from their taxable earnings. The bill applies to tax years starting after December 31, 2025, affecting REITs operating in the state. This is a direct change to how REITs calculate their state tax liability, increasing their taxable income.