Eminent Domain Relief Act

The Eminent Domain Relief Act (H.R. 2980) proposes changes to the federal tax code regarding property seized by the government through eminent domain. Under current law, property owners who receive compensation for seized land may owe capital gains taxes unless they reinvest that money into a similar "replacement property" within a strict two-year window.

This bill would allow individuals to keep the full amount of their compensation without paying federal taxes on the gain, regardless of whether they purchase a new property. By removing the requirement to reinvest in similar real estate within a specific timeframe, the bill aims to provide greater financial flexibility and tax relief to citizens whose private property is taken for public use.