Creates a new tax exclusion that lets taxpayers avoid reporting gain when they sell certain real property interests to a qualified organization for the Department of Defense Readiness and Environmental Protection Integration (REPI) program. The rule defines which property interests and buyers qualify, limits how long pass-through entities can use the exclusion, and exempts family-held pass-throughs from that time limit.

The change is added as a new Internal Revenue Code provision and applies to taxable years beginning after the date of enactment. It is aimed at encouraging land transactions that support DoD readiness and conservation goals by reducing the tax burden on sellers who participate in REPI-purpose sales.