H.R. 4115

119 HR 4115 IH: Saving Our Mainstreet American Locations for Leisure and Shopping Act of 2025
 U.S. House of Representatives
 2025-06-24
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  1st Session  H. R. 4115  IN THE HOUSE OF REPRESENTATIVES   June 24, 2025   Ms. Tenney  (for herself,  Mr. Tonko ,  Mr. Lawler , and  Mr. Ryan ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to exclude certain discharges of indebtedness secured by real property from income.
1.
Short title
This Act may be cited as the   Saving Our Mainstreet American Locations for Leisure and Shopping Act of 2025  , or the   Saving Our MALLS Act  .
2.
Excluding discharge of commercial or retail indebtedness from income
(a)
In general
 Section 108(a)(1)  of the Internal Revenue Code of 1986 is amended by striking  or  at the end of subparagraph (D), by striking the period at the end of subparagraph (E)(ii) and inserting  , or , and by adding at the end the following new subparagraph:
(F)
the indebtedness discharged is qualified commercial or retail indebtedness.
 .
(b)
Commercial or retail indebtedness defined
Section 108 of such code is amended by adding at the end the following new subsection:
(j)
Commercial or retail indebtedness defined
For purposes of this section:
(1)
In general
The term qualified  commercial or retail indebtedness  means indebtedness which is—
(A)
incurred or assumed by the taxpayer before March 1, 2023,
(B)
discharged during the period beginning on December 31, 2023, and ending on January 1, 2028, and
(C)
secured directly or indirectly by specified real property of the taxpayer at all times after such indebtedness was so incurred or assumed and before such discharge.
(2)
Specified real property
The term  specified real property  means real property which is—
(A)
used in a trade or business of the taxpayer,
(B)
not described in section 168(b)(3)(B), and
(C)
not described in section 144(c)(6)(B).
 .
(c)
Coordination of exclusions
(1)
Section 108(a)(2)(A) of such Code is amended by striking  and (E)  and inserting  (E), and (F) .
(2)
 Section 108(a)(2)(B)  is amended—
(A)
in the header, by striking
and qualified real property business exclusion   and inserting
, qualified real property business exclusion, and qualified commercial or retail indebtedness  , and
(B)
by striking  and (D)  and inserting  (D), and (F) .
(d)
Reduction of tax attributes
 Section 108(b)(1)  is amended by striking  or (C)  and inserting  (C), or (F) .
(e)
Effective date
The amendments made by this section apply to discharges of indebtedness occurring on or after December 31, 2023.