RELATING TO TAXATION OF REAL ESTATE INVESTMENT TRUSTS.

SB 592 would remove a specific tax deduction currently available to real estate investment trusts (REITs) in the state. It disallows the "dividends-paid deduction," meaning REITs would no longer be able to reduce their taxable income by the amount they pay out as dividends to shareholders. This change directly affects REITs operating within the state, impacting their tax liability starting for taxable years beginning after December 31, 2025. The bill makes a concrete policy change to the state's tax code by eliminating this deduction for REITs.