The revitalization act is important because it will remove several tax impediments for foreign investors to invest in US real estate.Currently, the rules governing foreign companies' investments--orrather, the tax treatment of their investments when they try toexpatriate their capital--is governed by Foreign Investment in RealProperty Tax Act of 1980, which is seen as unfair and undulyonerous to foreign investors.

The burden intensified in 2007, when the IRS issued a ruling that anyforeigner that sold stock in a real estate corporation or REIT thatwas liquidated with the intent of distributing funds--a commonstructure for such scenarios--would have to pay taxes subject toFIRPTA instead of having it treated as though it were a stock sale.

The Real Estate Revitalization Act will rectify this and other issues, which is why it is waiting anxiously for the tax score, Real Estate Roundtable Counsel David Pearce tells GlobeSt.com. The lower it is, obviously, the greater change the legislation has of being passed.

It is not just the act that is in limbo; the protracted health caredebate has held up similar assessments on other legislation. According to Pearce, one industry measure for the act is a loss of $3billion to $6 billion over the next 10 years in revenue to the USgovernment. In exchange, though, the act would result in far greaterinvestment flows.

Much also depends on the size of the package on which the act isattached. Obviously, Pearce says, if it were attached to a largemultibillion dollar package it would be easier to go through. First, though, the score is needed. "Until we get that number it isdifficult to strategize," he says.