1. Short title This Act may be cited as the Retail Revitalization Act of 2023 . 2. Modification of treatment of certain rents received by real estate investment trust from related parties (a) Special rule for distressed tenants (1) In general Section 856(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Special rule for distressed tenants (A) In general Except as otherwise provided by the Secretary, in the case of a real estate investment trust which makes a qualified acquisition of a qualified tenant during the 4-year period beginning on the date of the enactment of this paragraph, paragraph (2)(B) shall be applied with respect to such tenant by substituting 50 percent for 10 percent each place it appears therein. (B) Qualified acquisition For purposes of this paragraph— (i) In general The term qualified acquisition means the acquisition by a real estate investment trust of stock, assets, or net profits in connection with the bankruptcy, insolvency (within the meaning of section 108(d)(3)), or cash flow insolvency of a qualified tenant. (ii) Cash flow insolvency For purposes of clause (i), a qualified tenant shall be treated as having cash flow insolvency following a reasonable determination by the real estate investment trust, based upon an examination of the facts and circumstances, that such tenant’s revenue is insufficient to cover its debt service payments based on such tenant’s applicable financial statement (as defined in section 451(b)(3)). (C) Qualified tenant For purposes of this paragraph— (i) In general The term qualified tenant means, with respect to any acquisition referred to in subparagraph (B), any person from which the real estate investment trust received or accrued rents from real property pursuant to a lease which was in effect on the date of the enactment of this paragraph. (ii) Renewals, etc., of existing leases For purposes of clause (i), a lease shall be treated as in effect on the date of the enactment of this paragraph if the