RELATING TO TAXATION OF REAL ESTATE INVESTMENT TRUSTS.

HB 947 would change how real estate investment trusts (REITs) are taxed by eliminating their ability to deduct dividends paid to shareholders. This policy change directly affects REITs operating in the state, increasing their taxable income starting in 2026. The bill removes a specific tax deduction currently allowed for REITs, meaning these entities would pay more tax on their earnings beginning with taxable years after December 31, 2025. The bill is currently pending in committee review for the 2026 legislative session and has not yet been enacted.