Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB439 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 439
5	5	To amend the Internal Revenue Code of 1986 to exclude from gross income
6	6	gain from the sale of qualified real property interests acquired under
7	7	the authority of the Readiness and Environmental Protection Integration
8	8	(REPI) program administered by the Department of Defense pursuant
9	9	to section 2684a of title 10, United States Code, and for other purposes.
10	10	IN THE SENATE OF THE UNITED STATES
11	11	FEBRUARY6 (legislative day, FEBRUARY5), 2025
12	12	Mr. B
13	13	UDD(for himself and Mr. KAINE) introduced the following bill; which
14	14	was read twice and referred to the Committee on Finance
15	15	A BILL
16	16	To amend the Internal Revenue Code of 1986 to exclude
17	17	from gross income gain from the sale of qualified real
18	18	property interests acquired under the authority of the
19	19	Readiness and Environmental Protection Integration
20	20	(REPI) program administered by the Department of De-
21	21	fense pursuant to section 2684a of title 10, United
22	22	States Code, and for other purposes.
23	23	Be it enacted by the Senate and House of Representa-1
24	24	tives of the United States of America in Congress assembled, 2
25	25	VerDate Sep 11 2014 00:11 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S439.IS S439
26	26	kjohnson on DSK7ZCZBW3PROD with $$_JOB 2
27	27	•S 439 IS
28	28	SECTION 1. SHORT TITLE. 1
29	29	This Act may be cited as the ‘‘Incentivizing Readi-2
30	30	ness and Environmental Protection Integration Sales Act 3
31	31	of 2025’’. 4
32	32	SEC. 2. EXCLUSION OF GAIN FROM SALE OF QUALIFIED 5
33	33	REAL PROPERTY INTERESTS ACQUIRED FOR 6
34	34	PURPOSES RELATED TO THE READINESS AND 7
35	35	ENVIRONMENTAL PROTECTION INTEGRA-8
36	36	TION PROGRAM. 9
37	37	(a) I
38	38	NGENERAL.—Part III of subchapter B of chap-10
39	39	ter 1 of the Internal Revenue Code of 1986 is amended 11
40	40	by inserting after section 139I the following new section: 12
41	41	‘‘SEC. 139J. GAIN FROM SALE OF QUALIFIED REAL PROP-13
42	42	ERTY INTEREST FOR PURPOSES RELATED TO 14
43	43	THE READINESS AND ENVIRONMENTAL PRO-15
44	44	TECTION INTEGRATION PROGRAM. 16
45	45	‘‘(a) I
46	46	NGENERAL.—Gross income shall not include 17
47	47	any gain from the sale of qualified real property interest 18
48	48	to a qualified organization for REPI purposes. 19
49	49	‘‘(b) D
50	50	EFINITIONS.—For purposes of this section— 20
51	51	‘‘(1) Q
52	52	UALIFIED REAL PROPERTY INTEREST .— 21
53	53	‘‘(A) I
54	54	N GENERAL.—The term ‘qualified 22
55	55	real property interest’ means any of the fol-23
56	56	lowing interests in real property: 24
57	57	‘‘(i) The entire interest of the tax-25
58	58	payer. 26
59	59	VerDate Sep 11 2014 00:11 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S439.IS S439
60	60	kjohnson on DSK7ZCZBW3PROD with $$_JOB 3
61	61	•S 439 IS
62	62	‘‘(ii) A remainder interest. 1
63	63	‘‘(iii) A restriction (granted in per-2
64	64	petuity and created pursuant to State real 3
65	65	property law) on the use which may be 4
66	66	made of the real property. 5
67	67	‘‘(B) S
68	68	PECIAL RULE FOR MINERAL INTER -6
69	69	ESTS.—An interest in real property shall not 7
70	70	fail to be treated as a qualified real property in-8
71	71	terest solely by reason of a retention of a quali-9
72	72	fied mineral interest (as defined in section 10
73	73	170(h)(6)), but only if the right to access such 11
74	74	mineral interest is not accomplished by any sur-12
75	75	face mining method. 13
76	76	‘‘(2) Q
77	77	UALIFIED ORGANIZATION .—The term 14
78	78	‘qualified organization’ has the meaning given such 15
79	79	term by section 170(h)(3). 16
80	80	‘‘(3) REPI
81	81	PURPOSES.—A sale of qualified real 17
82	82	property interest shall be treated as being for REPI 18
83	83	purposes if such sale is pursuant to the authority of 19
84	84	the Readiness and Environmental Protection Inte-20
85	85	gration (REPI) program administered by the De-21
86	86	partment of Defense under section 2684a of title 10, 22
87	87	United States Code. 23
88	88	‘‘(c) L
89	89	IMITATION.— 24
90	90	VerDate Sep 11 2014 00:11 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S439.IS S439
91	91	kjohnson on DSK7ZCZBW3PROD with $$_JOB 4
92	92	•S 439 IS
93	93	‘‘(1) IN GENERAL.—In the case of a pass- 1
94	94	through entity, no amount shall be excluded from 2
95	95	gross income under subsection (a) with respect to a 3
96	96	sale if such entity acquired the qualified real prop-4
97	97	erty interest by sale within 3 years of the date of the 5
98	98	sale described in subsection (a). 6
99	99	‘‘(2) E
100	100	XCEPTION FOR FAMILY PARTNERSHIPS 7
101	101	OR FAMILY PASS-THROUGH ENTITIES.— 8
102	102	‘‘(A) I
103	103	N GENERAL.—Paragraph (1) shall 9
104	104	not apply with respect to any sale made by any 10
105	105	partnership if substantially all of the partner-11
106	106	ship interests in such partnership are held, di-12
107	107	rectly or indirectly, by an individual and mem-13
108	108	bers of the family of such individual. 14
109	109	‘‘(B) M
110	110	EMBERS OF THE FAMILY .—For 15
111	111	purposes of this paragraph, the term ‘members 16
112	112	of the family’ means, with respect to any indi-17
113	113	vidual— 18
114	114	‘‘(i) the spouse of such individual, and 19
115	115	‘‘(ii) any individual who bears a rela-20
116	116	tionship to such individual which is de-21
117	117	scribed in subparagraphs (A) through (G) 22
118	118	of section 152(d)(2). 23
119	119	‘‘(C) A
120	120	PPLICATION TO OTHER PASS - 24
121	121	THROUGH ENTITIES.—Except as may be other-25
122	122	VerDate Sep 11 2014 00:11 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S439.IS S439
123	123	kjohnson on DSK7ZCZBW3PROD with $$_JOB 5
124	124	•S 439 IS
125	125	wise provided by the Secretary, the rules of this 1
126	126	paragraph shall apply to S corporations and 2
127	127	other pass-through entities in the same manner 3
128	128	as such rules apply to partnerships.’’. 4
129	129	(b) C
130	130	LERICALAMENDMENT.—The table of sections 5
131	131	for part III of subchapter B of chapter 1 of the Internal 6
132	132	Revenue Code of 1986 is amended by inserting after the 7
133	133	item relating to section 139I the following new item: 8
134	134	‘‘Sec. 139J. Gain from sale of qualified real property interest for purposes re-
135	135	lated to the readiness and environmental protection integration
136	136	program.’’.
137	137	(c) EFFECTIVEDATE.—The amendments made by 9
138	138	this section shall apply to taxable years beginning after 10
139	139	the date of the enactment of this Act. 11
140	140	Æ
141	141	VerDate Sep 11 2014 00:11 Mar 06, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S439.IS S439
142	142	kjohnson on DSK7ZCZBW3PROD with $$_JOB