No Tax on Takings Act

The No Tax on Takings Act would amend the Internal Revenue Code to exclude from gross income any gain realized from the conversion of property due to eminent domain, including sales or exchanges made under threat of such action. This exclusion would apply to property located in the United States and would not apply if the taxpayer elects to opt out of the provision. The bill also clarifies that Section 1033 (involuntary conversion rules) would not apply to conversions covered by this new exclusion, and the Secretary of the Treasury would be authorized to issue regulations to implement the change. The amendment would take effect for taxable years ending after the date of enactment.

No official summary is available here. This one was written by AI from the bill’s text.