Bill Summary
This legislation, known as the "Earthquake Mitigation Incentive and Tax Parity Act of 2019," aims to amend the Internal Revenue Code of 1986 by excluding certain amounts received from State-based earthquake loss mitigation programs from gross income. This means that individuals or residential property owners who receive financial assistance from these programs to mitigate earthquake risk will not have to pay taxes on these funds. The legislation defines terms such as "qualified earthquake mitigation payment" and "earthquake loss mitigation program" to specify the types of financial assistance that would be excluded from gross income. It also includes a provision that prevents individuals from receiving a double benefit by both excluding the amount from gross income and claiming a deduction or credit for the same expenditure. This legislation would go into effect for taxable years beginning after December 31, 2018.
Possible Impacts
- Individuals who have incurred expenses for earthquake loss mitigation may now receive financial assistance through state-based programs without having to include the amount as part of their gross income for tax purposes. This could potentially save them money and make it easier for them to afford necessary mitigation measures.
- States may be incentivized to establish earthquake loss mitigation programs in order to receive tax benefits for their residents. This could lead to more resources and support being available for individuals and communities at risk of earthquakes.
- Organizations eligible for tax-exempt status may now have the opportunity to participate in earthquake loss mitigation programs and receive financial incentives, potentially expanding their scope of work and reach in the community.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2053 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 2053
To amend the Internal Revenue Code of 1986 to exclude from gross income
amounts received from State-based earthquake loss mitigation programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 3, 2019
Mr. Thompson of California (for himself and Mr. Calvert) 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 from gross income
amounts received from State-based earthquake loss mitigation programs.
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 ``Earthquake Mitigation Incentive and
Tax Parity Act of 2019''.
SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED EARTHQUAKE LOSS
MITIGATION PROGRAMS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139G the following new section:
``SEC. 139H. STATE-BASED EARTHQUAKE LOSS MITIGATION PROGRAMS.
``(a) In General.--Gross income shall not include any amount
received as a qualified earthquake mitigation payment.
``(b) Qualified Earthquake Mitigation Payment.--For purposes of
this section--
``(1) Qualified earthquake mitigation payment.--The term
`qualified earthquake mitigation payment' means any amount
which is received as a loan, loan forgiveness, grant, credit,
rebate, voucher, or other financial incentive pursuant to an
earthquake loss mitigation program established by a State, or
agency, instrumentality, or political subdivision thereof, by a
residential property owner or occupant to assist with expenses
paid, or obligations incurred, for earthquake loss mitigation.
``(2) Earthquake loss mitigation program.--The term
`earthquake loss mitigation program' includes a program
established by a State, or agency, instrumentality, or
political subdivision thereof, by itself or together with--
``(A) an organization described in section 501(c)
and exempt from tax under section 501(a),
``(B) an organization determined to be exempt from
State taxes pursuant to the laws of the relevant State,
or
``(C) a public instrumentality of a State pursuant
to a joint exercise of powers.
``(3) Earthquake loss mitigation.--The term `earthquake
loss mitigation' means an activity that reduces seismic risks
to a residential structure or its contents.
``(4) Seismic.--The term `seismic' has the meaning given
such term by section 4(3) of the Earthquake Hazards Reduction
Act of 1977 (42 U.S.C. 7703(3)).
``(5) No increase in basis.--Notwithstanding any other
provision of this subtitle, no increase in the basis or
adjusted basis of any property shall result from any amount
excluded under this subsection with respect to such property.
``(c) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, no deduction or credit shall be allowed
for, or by reason of, any expenditure to the extent of the amount
excluded under subsection (a) for any qualified earthquake mitigation
payment which was provided with respect to such expenditure.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 139G the following new item:
``Sec. 139H. State-based earthquake loss mitigation programs.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2018.
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