119-s439

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 439 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 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

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Incentivizing Readiness and 
Environmental Protection Integration Sales Act of 2025''.

SEC. 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:

``

SEC. 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.
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