This bill proposes an amendment to the Internal Revenue Code of 1986, specifically targeting the rules governing real estate investment trusts (REITs). Its primary purpose is to restore and modify the taxable REIT subsidiary asset test . The amendment seeks to adjust the percentage of assets a REIT can hold in its taxable REIT subsidiaries. Under the proposed change, section 856(c)(4)(B)(ii) of the Code would be modified to increase the asset test threshold from 20 percent to 25 percent . This adjustment would allow REITs to hold a larger proportion of their total assets in taxable REIT subsidiaries. The amendment is slated to take effect for all taxable years beginning after December 31, 2025 .