A bill to amend the Internal Revenue Code of 1954 to extend from 2 years to 2 1/2 years the period for constructing a new residence to qualify for nonrecognition of gain on the sale of an old residence.

Amends the Internal Revenue Code to extend to two and one- half years the maximum period which may elapse between the sale of a residence and the construction of another in order that gain from such sale will not be recognized for Federal income tax purposes.