S. 1334 would modify tax rules for Real Estate Investment Trusts (REITs) by increasing the percentage of assets they can hold in taxable REIT subsidiaries from 20 percent to 25 percent. REITs are companies that own and manage real estate portfolios and pass income to investors; taxable REIT subsidiaries are related companies that handle non-real estate business activities. This change would give REIT companies more flexibility in structuring their operations and finances. The bill, introduced by Senator Tillis and Senator Warnock in April 2025, would take effect for tax years beginning after December 31, 2025. The legislation contains no specific funding provisions, as it is a tax code amendment rather than a spending bill.