Section 1. Short title
This Act may be cited as the No Tax on Takings Act.
(a) In general
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:
(a) In general
Gross income shall not include gain from the conversion of property located in the United States by reason of the exercise of eminent domain (including the sale or exchange of such property under threat or imminence of such exercise).
(b) Coordination with rule for involuntary conversions
Section 1033 shall not apply to any conversion to which this section applies.
(c) Election not To claim exclusion
This section shall not apply to any conversion if the taxpayer elects (at such time and in such manner as the Secretary may provide) to have this section not apply to such conversion.
(d) Regulations
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.
(a) In general
.
(b) Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139L the following new item:
(b) Clerical amendment
.
(c) Effective date
The amendments made by this section shall apply to conversions in taxable years ending after the date of the enactment of this Act.