H.R. 7687

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7687 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 7687

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

February 25, 2026

Mr. Cline (for himself, Mr. Fleischmann, Mr. Perry, Mr. Moore of 
Alabama, and Mr. Ogles) 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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``No Tax on Takings Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR GAIN FROM CONVERSION OF 
PROPERTY BY REASON OF EMINENT DOMAIN.

(a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139L the following new section:

``SEC. 139M. GAIN FROM CONVERSION OF PROPERTY BY REASON OF EMINENT 
DOMAIN.

``(a) In General.--Gross income shall not include gain from the 
conversion of property located in the United States by reason of the 
exercise of eminent domain (including the sale or exchange of such 
property under threat or imminence of such exercise).
``(b) Coordination With Rule for Involuntary Conversions.--Section 
1033 shall not apply to any conversion to which this section applies.
``(c) Election Not To Claim Exclusion.--This section shall not 
apply to any conversion if the taxpayer elects (at such time and in 
such manner as the Secretary may provide) to have this section not 
apply to such conversion.
``(d) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.
(b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139L the following new item:

``Sec. 139M. Gain from conversion of real property by reason of eminent 
domain.''.
(c) Effective Date.--The amendments made by this section shall 
apply to conversions in taxable years ending after the date of the 
enactment of this Act.
<all>