RELATING TO TAXATION OF REAL ESTATE INVESTMENT TRUSTS.

HB 947 eliminates a specific tax deduction for real estate investment trusts (REITs), meaning these entities will no longer be able to subtract dividends paid to shareholders when calculating their taxable income. The bill directly affects REITs operating in the state, changing how they are taxed on their dividend distributions. This policy change takes effect for taxable years beginning after December 31, 2025, applying to all qualifying REITs moving forward. The key provision removes the existing deduction, altering REITs' tax calculation method without specifying new tax rates or additional requirements.