This bill proposes an amendment to the Internal Revenue Code of 1986 , specifically targeting the asset limitations for real estate investment trusts (REITs) . Its primary purpose is to increase the permissible percentage of a REIT's total assets that can be held within taxable REIT subsidiaries (TRSs) . The legislation would raise this limitation from the current 20 percent to 25 percent . This adjustment aims to provide REITs with greater flexibility in structuring their investments and operations through their subsidiary entities. The proposed change is slated to take effect for all taxable years beginning after December 31, 2025 .