H.R. 1083 — Incentivizing Readiness and Environmental Protection Integration Sales Act of 2025

This section establishes the short title of the Act as the “Incentivizing Readiness and Environmental Protection Integration Sales Act of 2025.”

This section establishes a new exclusion from gross income under the Internal Revenue Code for gain from the sale of a qualified real property interest to a qualified organization for Readiness and Environmental Protection Integration (REPI) purposes under 10 U.S.C. § 2684a. As background, the REPI program allows the Department of Defense to work with states, local governments, and conservation organizations to limit incompatible development near military installations, preserve habitat, and support military readiness. The provision defines a qualified real property interest as: (1) the taxpayer’s entire interest in the property, (2) a remainder interest, or (3) a perpetual restriction on use created under state real property law. It also provides that a retained qualified mineral interest does not disqualify the property, so long as access to the minerals is not through surface mining. The section limits the exclusion for pass-through entities by denying the tax benefit if the entity acquired the property by sale within 3 years of the sale generating the excluded gain. It creates an exception for family partnerships in which substantially all interests are held by an individual and family members, and applies the same rule to S corporations and other pass-through entities unless the Secretary provides otherwise. The section applies to taxable years beginning after the date of enactment.