Landowners who sell property or conservation easements to the Department of Defense under the Readiness and Environmental Protection Integration (REPI) program — which protects land around military bases from incompatible development — would no longer have to pay federal income tax on the gain from that sale. The tax break is designed to encourage more private landowners to participate in the program voluntarily. There's a safeguard to prevent flipping: pass-through entities like partnerships that acquired the land within three years can't claim the exclusion, unless it's a family partnership.
Corporate Benefits
- Federal income tax on REPI-program land sales — Capital gain excluded from gross income for qualifying sales to DoD-affiliated qualified organizations
- Eligibility for the exclusion via family pass-through entities — Anti-flip three-year holding rule waived for family partnerships
Congressional Summary
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) toa 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; orcertain 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.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-02-06
- Date Added
- 2026-04-09
- Source
- Congress.gov →
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