# 119-s-798: Capital Gains Inflation Relief Act of 2025

119-s-798, Capital Gains Inflation Relief Act of 2025, is a 119th Congress bill sponsored by Sen. Cruz, Ted [R-TX] (R-TX); status introduced; PRIA reads it as touching household money (as of 2026-05-23).

- Canonical: https://policyrisk.com/legislation/119-s-798
- As of: 2026-05-23
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-798
- Congress: 119
- Title: Capital Gains Inflation Relief Act of 2025
- Status: introduced
- Introduced: 2025-02-27
- Sponsor: Sen. Cruz, Ted [R-TX] (R-TX)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-05-23

## Summary

**This bill would index certain assets for inflation so non-corporate taxpayers pay tax on smaller, inflation-adjusted gains for long-held property.** It substitutes an inflation-adjusted basis for assets held more than three years when calculating gain or loss. - Individual investors and households could see lower taxable gains on long-term holdings like C corporation common stock, qualifying digital assets, and business property. The rule applies only when taxpayers have written documentation of the original purchase price and the holding period exceeds three years. - Regulated investment companies (RICs) and real estate investment trusts (REITs) get entity-level indexing that flows through to owners. The bill builds exceptions and adjustments to limit or adjust benefits for corporate shareholders and to change how capital gain dividends are measured. - Partnerships, S corporations, and common trust funds pass through indexing adjustments to partners and shareholders. The measure adds rules for transfers, section 754 elections, short sales, and applies to assets acquired after December 31, 2025.

## Cosponsors (1)

- Sen. Tillis, Thomas [R-NC] (R-NC), 2025-02-27T00:00:00.000Z

## Provisions PRIA read

- Lower capital gains tax for long-term investors: benefit, high. If enacted, this bill would let non-corporate taxpayers who bought qualifying assets after December 31, 2025 and held them more than three years use an inflation-adjusted ("indexed") basis when computing taxable gain. The indexed basis increases your adjusted basis by the percent change in the GDP…
- Indexing rules for funds and partners: mixed, medium. If enacted, qualified investment entities (for example, mutual funds structured as RICs and REITs) could apply indexing at the entity level and pass indexing adjustments to investors. A fund counts indexed stock each quarter by a ratio of indexed assets to all assets: RICs use average month-end val…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-524: Coast Guard Authorization Act of 2025
- 119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026
- 119-s-4744: Take Care of America’s Veterans Act
- 119-s-4668: Protect College Sports Act of 2026
- 119-s-2975: PIPELINE Safety Act of 2025

## Sources
- [119-s-798 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/798)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-524: Coast Guard Authorization Act of 2025](https://policyrisk.com/legislation/119-s-524)
- [119-s-3923: Weather Research and Forecasting Innovation Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-3923)
- [119-s-4744: Take Care of America’s Veterans Act](https://policyrisk.com/legislation/119-s-4744)
- [119-s-4668: Protect College Sports Act of 2026](https://policyrisk.com/legislation/119-s-4668)
- [119-s-2975: PIPELINE Safety Act of 2025](https://policyrisk.com/legislation/119-s-2975)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-798 (as of 2026-05-23).