,,ii  #aaith ,,congress  #ast ,session  
,s4 #dci  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,february #f        
7legislative day1 ,february #e71        
#bjbe,mr4 ,budd 7for himself and ,mr4   
,kaine7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to exclude from gross income gain 
from the sale of qualified real property
 interests acquired under the authority 
of the ,readiness and ,environmental    
,protection ,integration 7,,repi7       
program administered by the ,department 
of ,defense pursuant to section #bfhd;a 
of title #aj1 ,united ,states ,code1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the          
,incentivizing ,readiness and           
,environmental ,protection ,integration 
,sales ,act of #bjbe4  #b4 ,exclusion of
 gain from sale of qualified real       
property interests acquired for purposes
 related to the readiness and           

environmental protection integration    
program  7a7 ,in general ,part ,,iii of 
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#aci;,i the following new section3      
#aci;,j4 ,gain from sale of qualified   
real property interest for purposes     
related to the readiness and            
environmental protection integration    
program  7a7 ,in general ,gross income  
shall not include any gain from the sale
 of qualified real property interest to 
a qualified organization for ,,repi     
purposes4  7b7 ,definitions ,for        
purposes of this section-- 7#a7         
,qualified real property interest  7,a7 
,in general ,the term qualified real    
property interest means any of the      
following interests in real property3   
7i7 ,the entire interest of the         
taxpayer4  7ii7 ,a remainder interest4  
7iii7 ,a restriction 7granted in        
perpetuity and created pursuant to      
,state real property law7 on the use    

which may be made of the real property4 
7,b7 ,special rule for mineral interests
 ,an interest in real property shall not
 fail to be treated as a qualified real 
property interest solely by reason of a 
retention of a qualified mineral        
interest 7as defined in section         
#agj7;h77#f771 but only if the right to 
access such mineral interest is not     
accomplished by any surface mining      
method4  7#b7 ,qualified organization   
,the term qualified organization has the
 meaning given such term by section     
#agj7;h77#c74  7#c7 ,,repi purposes ,a  
sale of qualified real property interest
 shall be treated as being for ,,repi   
purposes if such sale is pursuant to the
 authority of the ,readiness and        
,environmental ,protection ,integration 
7,,repi7 program administered by the    
,department of ,defense under section   
#bfhd;a of title #aj1 ,united ,states   
,code4  7c7 ,limitation  7#a7 ,in       
general ,in the case of a pass-through  
entity1 no amount shall be excluded from

 gross income under subsection 7a7 with 
respect to a sale if such entity        
acquired the qualified real property    
interest by sale within #c years of the 
date of the sale described in subsection
 7a74  7#b7 ,exception for family       
partnerships or family pass-through     
entities  7,a7 ,in general ,paragraph   
7#a7 shall not apply with respect to any
 sale made by any partnership if        
substantially all of the partnership    
interests in such partnership are held1 
directly or indirectly1 by an individual
 and members of the family of such      
individual4  7,b7 ,members of the family
 ,for purposes of this paragraph1 the   
term members of the family means1 with  
respect to any individual-- 7i7 the     
spouse of such individual1 and  7ii7 any
 individual who bears a relationship to 
such individual which is described in   
subparagraphs 7,a7 through 7,g7 of      
section #aeb7;d77#b74  7,c7 ,application
 to other pass-through entities ,except 
as may be otherwise provided by the     

,secretary1 the rules of this paragraph 
shall apply to ,s corporations and other
 pass-through entities in the same      
manner as such rules apply to           
partnerships4  4  7b7 ,clerical         
amendment ,the table of sections for    
part ,,iii of subchapter ,b of chapter  
#a of the ,internal ,revenue ,code of   
#aihf is amended by inserting after the 
item relating to section #aci;,i the    
following new item3  ,sec4 #aci;,j4     
,gain from sale of qualified real       
property interest for purposes related  
to the readiness and environmental      
protection integration program4  4  7c7 
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4