I 

118TH CONGRESS 

1ST SESSION H. R. 5580 

To amend the Internal Revenue Code of 1986 to exclude certain discharges 

of indebtedness secured by real property from income. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 19, 2023 

Ms. TENNEY (for herself, Mr. HIGGINS of New York, Mr. LAWLER, and Mr. 

RYAN) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

certain discharges of indebtedness secured by real property from income. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Saving Our Mainstreet 

5 American Locations for Leisure and Shopping Act of 

6 2023’’. 


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•HR 5580 IH

1 SEC. 2. EXCLUDING DISCHARGE OF COMMERCIAL OR RE2 TAIL INDEBTEDNESS FROM INCOME. 

3 (a) IN GENERAL.—Section 108(a)(1) of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

5 end of subparagraph (D), by striking the period at the 

6 end of subparagraph (E)(ii) and inserting ‘‘, or’’ , and 

7 by adding at the end the following new subparagraph: 

8 ‘‘(F) the indebtedness discharged is quali9 fied commercial or retail indebtedness.’’. 

10 (b) COMMERCIAL OR RETAIL INDEBTEDNESS DE11 FINED.—Section 108 of such code is amended by adding 

12 at the end the following new subsection: 

13 ‘‘(j) COMMERCIAL OR RETAIL INDEBTEDNESS DE14 FINED.—For purposes of this section: 

15 ‘‘(1) IN GENERAL.—The term qualified ‘com16 mercial or retail indebtedness’ means indebtedness 

17 which is— 

18 ‘‘(A) incurred or assumed by the taxpayer 

19 before March 1, 2022, 

20 ‘‘(B) discharged during the period begin21 ning on December 31, 2022, and ending on 

22 January 1, 2027, and 

23 ‘‘(C) secured directly or indirectly by speci24 fied real property of the taxpayer at all times 

25 after such indebtedness was so incurred or as26 sumed and before such discharge. 


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•HR 5580 IH

1 ‘‘(2) SPECIFIED REAL PROPERTY.—The term 

2 ‘specified real property’ means real property which 

3 is— 

4 ‘‘(A) used in a trade or business of the 

5 taxpayer, 

6 ‘‘(B) not described in section 

7 168(b)(3)(B), and 

8 ‘‘(C) not described in section 

9 144(c)(6)(B).’’. 

10 (c) COORDINATION OF EXCLUSIONS.— 

11 (1) Section 108(a)(2)(A) of such Code is 

12 amended by striking ‘‘and (E)’’ and inserting ‘‘(E), 

13 and (F)’’. 

14 (2) Section 108(a)(2)(B) is amended— 

15 (A) in the header, by striking ‘‘AND QUALI16 FIED REAL PROPERTY BUSINESS EXCLUSION’’ 

17 and inserting ‘‘, QUALIFIED REAL PROPERTY

18 BUSINESS EXCLUSION, AND QUALIFIED COM19 MERCIAL OR RETAIL INDEBTEDNESS’’, and 

20 (B) by striking ‘‘and (D)’’ and inserting 

21 ‘‘(D), and (F)’’. 

22 (d) REDUCTION OF TAX ATTRIBUTES.—Section 

23 108(b)(1) is amended by striking ‘‘or (C)’’ and inserting 

24 ‘‘(C), or (F)’’. 


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•HR 5580 IH

1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section apply to discharges of indebtedness occurring 

3 on or after December 31, 2022. 

Æ 


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