to taxable years ending after the date of the enactment of this Act. (e) Modification of rental exception for taxable REIT subsidiaries (1) In general Section 856(d)(8)(A)(i) of such Code is amended to read as follows: (i) In general The requirements of this subparagraph are met with respect to any property if— (I) not more than 30 percent of the leasable space of such property is rented to taxable REIT subsidiaries and other persons described in paragraph (2)(B) (determined without regard to paragraph (10)), and (II) not more than 50 percent of the leasable space of such property is rented to taxable REIT subsidiaries and other persons described in paragraph (2)(B) (determined after the application of paragraph (10)). . (2) Effective date The amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this Act.