What does Preamble of HR 7687 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would exclude gain from the conversion of property by reason of eminent domain from gross income.

What does SHORT TITLE. of HR 7687 do?

This bill is formally titled the ``No Tax on Takings Act''.

What does EXCLUSION FROM GROSS INCOME FOR GAIN FROM CONVERSION OF of HR 7687 do?

This section amends the Internal Revenue Code of 1986 to add section 139M. Section 139M excludes gain from the conversion of property in the United States due to eminent domain from gross income. This exclusion applies to sales or exchanges of property under the threat or imminence of eminent domain. Section 1033 of the Internal Revenue Code does not apply to conversions covered by section 139M. Taxpayers can elect not to claim this exclusion. The Secretary of the Treasury is authorized to issue regulations to implement this section. The amendments apply to conversions in taxable years ending after the date of enactment of this Act.

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No Tax on Takings Act — HR. 7687

Last updated: 2/25/2026 · Introduced: 2/25/2026

Author: Ben Cline (R-VA)

TL;DR (AI)

This bill excludes from federal income tax any financial gain resulting from the sale or exchange of property taken through eminent domain.
The exclusion also applies to property sales occurring under the threat of eminent domain proceedings.
Taxpayers can choose to opt out of this exclusion, and existing rules regarding involuntary conversions (section 1033) will not apply to property taken through eminent domain.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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