119 HR 7687 IH: No Tax on Takings Act U.S. House of Representatives 2026-02-25 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS2d SessionH. R. 7687IN THE HOUSE OF REPRESENTATIVESFebruary 25, 2026Mr. 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 MeansA BILLTo amend the Internal Revenue Code of 1986 to exclude from gross income gain from the conversion of property by reason of eminent domain.

1.

Short title

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

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:

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.