II
119THCONGRESS
1
STSESSION S. 439
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.
IN THE SENATE OF THE UNITED STATES
FEBRUARY6 (legislative day, FEBRUARY5), 2025
Mr. B
UDD(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 De-
fense pursuant to section 2684a of title 10, United
States Code, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
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•S 439 IS
SECTION 1. SHORT TITLE. 1
This Act may be cited as the ‘‘Incentivizing Readi-2
ness and Environmental Protection Integration Sales Act 3
of 2025’’. 4
SEC. 2. EXCLUSION OF GAIN FROM SALE OF QUALIFIED 5
REAL PROPERTY INTERESTS ACQUIRED FOR 6
PURPOSES RELATED TO THE READINESS AND 7
ENVIRONMENTAL PROTECTION INTEGRA-8
TION PROGRAM. 9
(a) I
NGENERAL.—Part III of subchapter B of chap-10
ter 1 of the Internal Revenue Code of 1986 is amended 11
by inserting after section 139I the following new section: 12
‘‘SEC. 139J. GAIN FROM SALE OF QUALIFIED REAL PROP-13
ERTY INTEREST FOR PURPOSES RELATED TO 14
THE READINESS AND ENVIRONMENTAL PRO-15
TECTION INTEGRATION PROGRAM. 16
‘‘(a) I
NGENERAL.—Gross income shall not include 17
any gain from the sale of qualified real property interest 18
to a qualified organization for REPI purposes. 19
‘‘(b) D
EFINITIONS.—For purposes of this section— 20
‘‘(1) Q
UALIFIED REAL PROPERTY INTEREST .— 21
‘‘(A) I
N GENERAL.—The term ‘qualified 22
real property interest’ means any of the fol-23
lowing interests in real property: 24
‘‘(i) The entire interest of the tax-25
payer. 26
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•S 439 IS
‘‘(ii) A remainder interest. 1
‘‘(iii) A restriction (granted in per-2
petuity and created pursuant to State real 3
property law) on the use which may be 4
made of the real property. 5
‘‘(B) S
PECIAL RULE FOR MINERAL INTER -6
ESTS.—An interest in real property shall not 7
fail to be treated as a qualified real property in-8
terest solely by reason of a retention of a quali-9
fied mineral interest (as defined in section 10
170(h)(6)), but only if the right to access such 11
mineral interest is not accomplished by any sur-12
face mining method. 13
‘‘(2) Q
UALIFIED ORGANIZATION .—The term 14
‘qualified organization’ has the meaning given such 15
term by section 170(h)(3). 16
‘‘(3) REPI
PURPOSES.—A sale of qualified real 17
property interest shall be treated as being for REPI 18
purposes if such sale is pursuant to the authority of 19
the Readiness and Environmental Protection Inte-20
gration (REPI) program administered by the De-21
partment of Defense under section 2684a of title 10, 22
United States Code. 23
‘‘(c) L
IMITATION.— 24
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•S 439 IS
‘‘(1) IN GENERAL.—In the case of a pass- 1
through entity, no amount shall be excluded from 2
gross income under subsection (a) with respect to a 3
sale if such entity acquired the qualified real prop-4
erty interest by sale within 3 years of the date of the 5
sale described in subsection (a). 6
‘‘(2) E
XCEPTION FOR FAMILY PARTNERSHIPS 7
OR FAMILY PASS-THROUGH ENTITIES.— 8
‘‘(A) I
N GENERAL.—Paragraph (1) shall 9
not apply with respect to any sale made by any 10
partnership if substantially all of the partner-11
ship interests in such partnership are held, di-12
rectly or indirectly, by an individual and mem-13
bers of the family of such individual. 14
‘‘(B) M
EMBERS OF THE FAMILY .—For 15
purposes of this paragraph, the term ‘members 16
of the family’ means, with respect to any indi-17
vidual— 18
‘‘(i) the spouse of such individual, and 19
‘‘(ii) any individual who bears a rela-20
tionship to such individual which is de-21
scribed in subparagraphs (A) through (G) 22
of section 152(d)(2). 23
‘‘(C) A
PPLICATION TO OTHER PASS - 24
THROUGH ENTITIES.—Except as may be other-25
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•S 439 IS
wise provided by the Secretary, the rules of this 1
paragraph shall apply to S corporations and 2
other pass-through entities in the same manner 3
as such rules apply to partnerships.’’. 4
(b) C
LERICALAMENDMENT.—The table of sections 5
for part III of subchapter B of chapter 1 of the Internal 6
Revenue Code of 1986 is amended by inserting after the 7
item relating to section 139I the following new item: 8
‘‘Sec. 139J. Gain from sale of qualified real property interest for purposes re-
lated to the readiness and environmental protection integration
program.’’.
(c) EFFECTIVEDATE.—The amendments made by 9
this section shall apply to taxable years beginning after 10
the date of the enactment of this Act. 11
Æ
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