WASHINGTON, DC—The Senate Finance Committee approved a part of the reform measure to the Foreign Investment in Real Property Tax Act in a markup on Wednesday.

Specifically, it approved a proposal to double the FIRPTA free investment that a foreigner can make in a publicly traded REIT to 10%. The committee did not approve a part of the proposal that would allow foreign tax exempt pension funds to invest in US without FIRPTA. However, as one of the bill's sponsors, Senator Bob Menendez (D-NJ), said during the markup, support is building for that particular provision. "The exclusion of the pension provision in this markup does not mean it is controversial in any way," he said, noting that it has bipartisan support and was included in President Obama's budget. Indeed, Sen. Rob Portman (R-Ohio) pointed out during the markup that FIRPTA was originally put in place in reaction to the Time magazine article fretting about Japan Inc.'s growing ownership of US property.

Going forward, Menendez also said, he "intends to seek comprehensive relief for obstacles" that foreign investors face when they place money in the US.

"It is important reform measure that will infuse additional investment in the US." Advocates of the measure, needless to say, were pleased by Wednesday's action. It "is an important step toward modernizing the taxation of foreign investment in US real estate," Jeff DeBoer, CEO of The Real Estate Roundtable, tells GlobeSt.com. "This is about jobs, infrastructure and economic growth. More can and should be done but the step today is significant."

The committee also approved an investment tax credit of 10% for "waste heat-to-power" systems, or combined heat and power systems. These CHP systems are used to capture heat that would otherwise be wasted and use it to power a building's electrical systems. Says DeBoer about this measure: "This bill is good for both improved energy efficiency as well as safety and productivity as on-site CHP improves the ability of buildings to stay 'up and running' during storms or other catastrophic events that take out centralized grid infrastructure."