Sponsors (15)
The bill encourages conservation near military installations by allowing tax-free sales of qualifying property interests (including protections for many family pass-through transfers), but it reduces federal revenue and leaves gaps and exclusions that can create unexpected tax bills or lower proceeds for some sellers.
Owners of eligible land (individuals and pass-through entities) near military installations can sell qualifying property interests to REPI participants without owing federal income tax on the gain, reducing tax liability on conservation sales.
Conservation-type sales (for example, perpetual use restrictions) and some retained mineral-interest arrangements can be monetized tax-free, increasing financial incentives to protect and conserve land around military sites.
Family-owned pass-through entities are explicitly able to access the exclusion even if the property interest was acquired within three years, protecting common intergenerational land transfers from unintended tax consequences.
Taxpayers who sold interests through pass-through entities within three years (in some cases) may still be denied the exclusion, producing unexpected taxable gains and higher tax bills for affected sellers.
The exclusion reduces federal income tax receipts, modestly lowering government revenue and potentially increasing the deficit or crowding out other spending unless offsets are found.
Owners who retain mineral rights but must allow surface mining (or similar uses) could be disqualified from the exclusion, complicating negotiations and possibly lowering sale proceeds for those landowners.
Based on analysis of 2 sections of legislative text.
Excludes from federal gross income gains from sales of qualifying real property interests to qualified organizations under the DoD REPI program, with a 3-year anti-flip rule for pass-throughs.
Introduced February 6, 2025 by Gregory Francis Murphy · Last progress February 6, 2025
Excludes from federal gross income gains when landowners sell qualifying real property interests to qualified conservation organizations under the Department of Defense Readiness and Environmental Protection Integration (REPI) program. The exclusion covers whole interests, remainder interests, and perpetual use restrictions, allows retention of certain mineral interests if surface mining access is not permitted, and applies anti-flip rules for pass-through entities that resell within three years (with a family-entity exception). The provision adds a new Internal Revenue Code section, directs Treasury to issue rules for S corporations and other pass-through entities, and is effective for taxable years beginning after enactment.