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119-hr-4115119th CongressWALLET

Saving Our MALLS Act

Sponsored By: Representative Tenney, Claudia [R-NY-24]

Introduced

Summary

Exclude certain discharged commercial and retail real estate debt from gross income. The Saving Our MALLS Act would create a new tax exclusion for qualifying forgiven debt on commercial or retail property to ease tax burdens when business mortgages are canceled.

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  • Owners of commercial and retail real estate would not have to count forgiven loans as taxable income if the debt was taken out before March 1, 2023 and the discharge happens between December 31, 2023 and January 1, 2028. This applies only to debts secured by the specified real property.
  • Businesses that use property in a trade or business would get relief when qualifying secured debt is forgiven. The exclusion covers debt secured directly or indirectly by that business property and excludes property types listed in existing tax code sections 168(b)(3)(B) and 144(c)(6)(B).
  • Tax administration would change. The bill adds a new definition of “qualified commercial or retail indebtedness” to Section 108 and updates cross references so the new exclusion works with existing discharge-of-indebtedness rules and tax attribute reductions.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Tax break for commercial property debt

If enacted, this bill would let owners exclude certain forgiven commercial or retail debt from taxable income. The debt must have been taken out before March 1, 2023 and forgiven between Dec 31, 2023 and Jan 1, 2028. The debt must have been secured (directly or indirectly) by real property used in your trade or business. The property also must not be the specific types excluded by two other tax rules (sections 168(b)(3)(B) or 144(c)(6)(B)). You who use this exclusion would also need to reduce other tax attributes like losses, credits, or basis under existing rules, which can offset some benefit. The exclusion would apply only to discharges on or after Dec 31, 2023.

Sponsors & CoSponsors

Sponsor

Tenney, Claudia [R-NY-24]

NY • R

Cosponsors

  • Rep. Tonko, Paul [D-NY-20]

    NY • D

    Sponsored 6/24/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 6/24/2025

  • Rep. Ryan, Patrick [D-NY-18]

    NY • D

    Sponsored 6/24/2025

Roll Call Votes

No roll call votes available for this bill.

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