CONGRESS FOR VOTERS

RepublicanBill · H.R. 7687· House(119-HR-7687)

No Tax on Takings Act

Rep. Cline
Age: 54 years
Virginia
Introduced
2/25/2026
Last activity
2/25/2026 — Referred to the House Committee on Ways and Means.
Sponsored by
Ben Cline
Cosponsors
Republican - 10Democrat - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

This bill, titled the "No Tax on Takings Act," proposes an amendment to the Internal Revenue Code of 1986. It aims to exclude gain from gross income when property located in the United States is converted due to the exercise of eminent domain. This exclusion also covers property sold or exchanged under the threat or imminence of eminent domain. The act specifies that Section 1033 will not apply to these specific conversions. Taxpayers have the option to elect not to use this exclusion. These changes would apply to conversions in taxable years ending after the Act is enacted.

Yes· 3 of 12

  • Does this cut the tax on profits from selling investments?+5

    The bill effectively reduces the tax burden on capital gains realized through property conversion via eminent domain.

  • Would farmers be better off under this?+4

    Farmers whose land is frequently subject to eminent domain for infrastructure will see improved financial outcomes.

  • Would high-income households be better off under this?+3

    High-income property owners can utilize this exclusion to mitigate significant tax liabilities from eminent domain.

The opposite

  • Does this reduce what the federal government owes?-1

    By excluding certain gains from gross income, the bill may slightly reduce federal tax revenue.