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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.
2/7/2025, 11:56 AM
Summary of Bill S 439
The main purpose of this bill is to provide a tax benefit to individuals or entities who sell real property interests that were acquired through the REPI program. By excluding the gain from the sale of these properties from gross income, the bill aims to incentivize participation in the program and promote environmental protection efforts on military installations.
Overall, the REPI Program Exclusion Act seeks to support the Department of Defense in its efforts to protect natural resources and enhance military readiness, while also providing a tax benefit to those who participate in the program.
Congressional Summary of S 439
Incentivizing Readiness and Environmental Protection Integration Sales Act of 2025
This bill excludes the gain from the sale of a qualified real property interest under the Readiness and Environmental Protection Integration (REPI) Program from gross income for federal tax purposes. (Some limitations apply.)
As background, the REPI Program supports cost-sharing agreements between the Armed Forces, other federal agencies, state and local governments, and certain private organizations to address land use near military installations, address environmental restrictions that limit military activities, and increase military installation resilience.
Under the bill, the exclusion from gross income applies to gain from the sale of a real property interest (pursuant to an agreement under the REPI Program) to
- a state or U.S. possession (or a political subdivision of a state or U.S. possession) or the District of Columbia;
- the United States;
- certain corporations, trusts, community chest, funds, or foundations; or
- certain charitable organizations.
Further, under the bill, the real property interest that is sold may be (1) the entire interest in the real property, (2) a remainder interest in the real property, or (3) a restriction on the use of the real property (e.g., easement) that is granted in perpetuity and created under state law.
However, the bill limits such exclusion from gross income for a partnership or other pass-through entity (other than a family partnership or family pass-through entity) to gain from the sale of a real property interest that is held for at least three years.
