I 
110TH CONGRESS 
2D SESSION 
H. R. 6348 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
gain from the conversion of property by reason of eminent domain. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 23, 2008 
Mr. GINGREY (for himself, Mr. HUNTER, Mr. LINDER, Mr. WESTMORELAND, 
Mr. PRICE of Georgia, Mr. BROUN of Georgia, Mrs. DRAKE, Ms. FALLIN, 
Mr. FEENEY, Mr. MARCHANT, Mr. KLINE of Minnesota, Mr. SHADEGG, 
Mr. GOHMERT, Mr. DAVIS of Kentucky, Mrs. BACHMANN, Mr. PITTS, 
Mr. BARTLETT of Maryland, Mr. PENCE, Mr. HENSARLING, Mr. KING 
of Iowa, Mr. LATTA, Mr. DAVID DAVIS of Tennessee, Mr. GARRETT of 
New Jersey, Mr. SULLIVAN, Mr. WAMP, Mr. ROGERS of Kentucky, Mr. 
ALEXANDER, Mr. GALLEGLY, Mr. PAUL, Mr. SOUDER, and Mr. CAL-
VERT) 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 
from gross income gain from the conversion of property 
by reason of eminent domain. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Eminent Domain Tax 
Relief Act of 2008’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME FOR GAIN FROM 
DISPOSITION OF PROPERTY BY REASON OF 
EMINENT DOMAIN. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
items specifically excluded from gross income) is amended 
by inserting after section 139B the following new section: 
‘‘SEC. 139C. GAIN FROM DISPOSITION OF PROPERTY BY 
REASON OF EMINENT DOMAIN. 
‘‘(a) IN GENERAL.—Gross income shall not include 
gain from the conversion (or threat or imminence thereof) 
of property in the United States by reason of the exercise 
of eminent domain by a governmental unit having the 
power to exercise eminent domain. 
‘‘(b) COORDINATION WITH OTHER NONRECOGNI-
TION PROVISIONS.— 
‘‘(1) GAIN.—Gain excluded under subsection 
(a) shall not be treated as gain recognized or an 
amount realized for purposes of sections 467, 
637(d), 1033, 1245, 1250, 1252, 1254, 1255, and 
1402. 
‘‘(2) SECTION 1231.—Section 1231 shall be ap-
plied without regard to this section. 
‘‘(3) HOLDING PERIOD.—Section 1223(1) shall 
not apply. 
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‘‘(c) ELECTION NOT TO CLAIM CREDIT.—This sec-
tion shall not apply to a taxpayer for any taxable year 
if such taxpayer elects to have this section not apply for 
such taxable year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such part is amended by inserting after the item relat-
ing to section 139B the following new item: 
‘‘Sec. 139C. Gain from disposition of property by reason of eminent domain.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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