Saving Our MALLS Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4115 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4115

     To amend the Internal Revenue Code of 1986 to exclude certain 
    discharges of indebtedness secured by real property from income.


_______________________________________________________________________


                    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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 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''.

SEC. 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.
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