Large corporations that use investment trusts as a way of collecting payments tax-free would now be breaking the law under a bill that has cleared the Maryland General Assembly.

The House of Delegates and the Senate both passed a bill this week eliminating the tax loophole for captive real estate investment trusts.

Lawmakers expected the closure of the loophole to generate an estimated $10 million in unpaid taxes next year.

Captive real estate investment trusts are used legally as property investments for large businesses. But some companies have used the captive trusts to write off rent payments to themselves.

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A company with multiple large buildings, such as a bank or big-box store, could list its real estate investment trust as the landlord, pay the rent on the individual locations to the trust and take the rent as a business expense.

Earlier this month, Comptroller Peter Franchot said his office would begin to crack down on corporations that take advantage of the loophole.