S. 439

119 S439 IS: Incentivizing Readiness and Environmental Protection Integration Sales Act of 2025
 U.S. Senate
 2025-02-06
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 439  IN THE SENATE OF THE UNITED STATES   February 6 (legislative day, February 5), 2025   Mr. Budd  (for himself and  Mr. Kaine ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income gain from the sale of qualified real property interests acquired under the authority of the Readiness and Environmental Protection Integration (REPI) program administered by the Department of Defense pursuant to section 2684a of title 10, United States Code, and for other purposes.
1.
Short title
This Act may be cited as the   Incentivizing Readiness and Environmental Protection Integration Sales Act of 2025  .
2.
Exclusion of gain from sale of qualified real property interests acquired for purposes related to the readiness and environmental protection integration program
(a)
In general
Part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
139J.
Gain from sale of qualified real property interest for purposes related to the readiness and environmental protection integration program
(a)
In general
Gross income shall not include any gain from the sale of qualified real property interest to a qualified organization for REPI purposes.
(b)
Definitions
For purposes of this section—
(1)
Qualified real property interest
(A)
In general
The term  qualified real property interest  means any of the following interests in real property:
(i)
The entire interest of the taxpayer.
(ii)
A remainder interest.
(iii)
A restriction (granted in perpetuity and created pursuant to State real property law) on the use which may be made of the real property.
(B)
Special rule for mineral interests
An interest in real property shall not fail to be treated as a qualified real property interest solely by reason of a retention of a qualified mineral interest (as defined in section 170(h)(6)), but only if the right to access such mineral interest is not accomplished by any surface mining method.
(2)
Qualified organization
The term  qualified organization  has the meaning given such term by section 170(h)(3).
(3)
REPI purposes
A sale of qualified real property interest shall be treated as being for REPI purposes if such sale is pursuant to the authority of the Readiness and Environmental Protection Integration (REPI) program administered by the Department of Defense under section 2684a of title 10, United States Code.
(c)
Limitation
(1)
In general
In the case of a pass-through entity, no amount shall be excluded from gross income under subsection (a) with respect to a sale if such entity acquired the qualified real property interest by sale within 3 years of the date of the sale described in subsection (a).
(2)
Exception for family partnerships or family pass-through entities
(A)
In general
Paragraph (1) shall not apply with respect to any sale made by any partnership if substantially all of the partnership interests in such partnership are held, directly or indirectly, by an individual and members of the family of such individual.
(B)
Members of the family
For purposes of this paragraph, the term  members of the family  means, with respect to any individual—
(i)
the spouse of such individual, and
(ii)
any individual who bears a relationship to such individual which is described in subparagraphs (A) through (G) of section 152(d)(2).
(C)
Application to other pass-through entities
Except as may be otherwise provided by the Secretary, the rules of this paragraph shall apply to S corporations and other pass-through entities in the same manner as such rules apply to partnerships.
 .
(b)
Clerical amendment
The table of sections for part III of subchapter B of  chapter 1  of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139I the following new item:
Sec. 139J. Gain from sale of qualified real property interest for purposes related to the readiness and environmental protection integration program.
  .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.