II 

118TH CONGRESS 

2D SESSION S. 5409 

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 

DECEMBER 3, 2024 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Incentivizing Readi3 ness and Environmental Protection Integration Sales Act 

4 of 2024’’. 

5 SEC. 2. EXCLUSION OF GAIN FROM SALE OF QUALIFIED 

6 REAL PROPERTY INTERESTS ACQUIRED FOR 

7 PURPOSES RELATED TO THE READINESS AND 

8 ENVIRONMENTAL PROTECTION INTEGRA9 TION PROGRAM. 

10 (a) IN GENERAL.—Part III of subchapter B of chap11 ter 1 of the Internal Revenue Code of 1986 is amended 

12 by inserting after section 139I the following new section: 

13 ‘‘SEC. 139J. GAIN FROM SALE OF QUALIFIED REAL PROP14 ERTY INTEREST FOR PURPOSES RELATED TO 

15 THE READINESS AND ENVIRONMENTAL PRO16 TECTION INTEGRATION PROGRAM. 

17 ‘‘(a) IN GENERAL.—Gross income shall not include 

18 any gain from the sale of qualified real property interest 

19 to a qualified organization for REPI purposes. 

20 ‘‘(b) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) QUALIFIED REAL PROPERTY INTEREST.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 real property interest’ means any of the fol24 lowing interests in real property: 

25 ‘‘(i) The entire interest of the tax26 payer. 


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1 ‘‘(ii) A remainder interest. 

2 ‘‘(iii) A restriction (granted in per3 petuity and created pursuant to State real 

4 property law) on the use which may be 

5 made of the real property. 

6 ‘‘(B) SPECIAL RULE FOR MINERAL INTER7 ESTS.—An interest in real property shall not 

8 fail to be treated as a qualified real property in9 terest solely by reason of a retention of a quali10 fied mineral interest (as defined in section 

11 170(h)(6)), but only if the right to access such 

12 mineral interest is not accomplished by any sur13 face mining method. 

14 ‘‘(2) QUALIFIED ORGANIZATION.—The term 

15 ‘qualified organization’ has the meaning given such 

16 term by section 170(h)(3). 

17 ‘‘(3) REPI PURPOSES.—A sale of qualified real 

18 property interest shall be treated as being for REPI 

19 purposes if such sale is pursuant to the authority of 

20 the Readiness and Environmental Protection Inte21 gration (REPI) program administered by the De22 partment of Defense under section 2684a of title 10, 

23 United States Code. 

24 ‘‘(c) LIMITATION.— 


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1 ‘‘(1) IN GENERAL.—In the case of a pass2 through entity, no amount shall be excluded from 

3 gross income under subsection (a) with respect to a 

4 sale if such entity acquired the qualified real prop5 erty interest by sale within 3 years of the date of the 

6 sale described in subsection (a). 

7 ‘‘(2) EXCEPTION FOR FAMILY PARTNERSHIPS

8 OR FAMILY PASS-THROUGH ENTITIES.— 

9 ‘‘(A) IN GENERAL.—Paragraph (1) shall 

10 not apply with respect to any sale made by any 

11 partnership if substantially all of the partner12 ship interests in such partnership are held, di13 rectly or indirectly, by an individual and mem14 bers of the family of such individual. 

15 ‘‘(B) MEMBERS OF THE FAMILY.—For 

16 purposes of this paragraph, the term ‘members 

17 of the family’ means, with respect to any indi18 vidual— 

19 ‘‘(i) the spouse of such individual, and 

20 ‘‘(ii) any individual who bears a rela21 tionship to such individual which is de22 scribed in subparagraphs (A) through (G) 

23 of section 152(d)(2). 

24 ‘‘(C) APPLICATION TO OTHER PASS25 THROUGH ENTITIES.—Except as may be otherVerDate Sep 11 2014 03:45 Dec 11, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S5409.IS S5409

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1 wise provided by the Secretary, the rules of this 

2 paragraph shall apply to S corporations and 

3 other pass-through entities in the same manner 

4 as such rules apply to partnerships.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 for part III of subchapter B of chapter 1 of the Internal 

7 Revenue Code of 1986 is amended by inserting after the 

8 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.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

Æ 


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