1. Short title This Act may be cited as the Saving Our Mainstreet American Locations for Leisure and Shopping Act of 2023 . 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, 2022, (B) discharged during the period beginning on December 31, 2022, and ending on January 1, 2027, 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