Firpta taxes gains from foreign sales of assets including buildings, land, mines and timber, as well as stock in real-estate companies.

WSJ: Tax Plan May Provide Real-Estate Boost

Firpta had led a number of investors to change their strategies to investing in real-estate debt in the U.S. rather than equity, said Ben Sanderson of Hermes Real Estate Investment Management Ltd.

WSJ: Tax Plan May Provide Real-Estate Boost

Jim Fetgatter, chief executive of the Association of Foreign Investors in Real Estate, said the move to revise the law showed investors for the first time that the White House understands the impact of Firpta.

WSJ: Tax Plan May Provide Real-Estate Boost

In addition, the Administration is proposing changes to the Foreign Investment in Real Property Tax Act (FIRPTA) aimed at enhancing the attractiveness of investment in U.S. infrastructure and real estate to a broader universe of private investors.

WHITEHOUSE: The White House

"For a pension investor who is looking around the world thinking, 'I want a global portfolio, ' quite often the Firpta has stopped them filling in that North American piece, " said Paul Richards, head of European property at consulting firm Mercer.

WSJ: Tax Plan May Provide Real-Estate Boost

Under current law, gains of foreign investors from the disposition of U.S. real property interests are generally subject to U.S. tax under FIRPTA, and foreign investors including large foreign pension funds regularly cite FIRPTA as an impediment to their investment in U.S. infrastructure and real estate assets.

WHITEHOUSE: The White House