Federal

To exclude certain amounts relating to compensating victims of the East Palestine train derailment, and for other purposes.

Source: Congress.gov · 359 words in original text

What This Bill Does

This bill treats the East Palestine train derailment as a qualified disaster for tax purposes. It allows people and businesses who receive compensation for lost income from the derailment to exclude that money from their taxable income (meaning they don't have to pay federal income taxes on those payments).

Who It Affects

Taxpayers who receive compensation for lost business income from the East Palestine train derailment. This includes payments from federal, state or local government agencies, Norfolk Southern Railway, or their subsidiaries, insurers, agents or related entities.

Key Provisions

• The East Palestine train derailment is classified as a qualified disaster under federal tax law (Sec. 1(a)) • Compensation money received for lost business income does not count as taxable income when it comes from government agencies, Norfolk Southern Railway, or their subsidiaries, insurers, agents or related persons (Sec. 1(b)) • The bill applies to compensation received on or after February 3, 2023 (Sec. 1(d))

What Changes

If this bill becomes law, people and businesses receiving compensation for lost income from the East Palestine train derailment will not have to count those payments as income when calculating their federal income taxes.

Important Definitions

The bill defines the "East Palestine train derailment" as the derailment of a train in East Palestine, Ohio, on February 3, 2023.

Effective Date

February 3, 2023

I 118TH CONGRESS 1ST SESSION H. R. 1270 To exclude certain amounts relating to compensating victims of the East Palestine train derailment, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 1, 2023 Mr. JOHNSON of Ohio (for himself, Mr. BALDERSON, Mr. MILLER of Ohio, Mr. LATTA, Mr. DAVIDSON, Mr. JOYCE of Ohio, Mr. WENSTRUP, Mrs. SYKES, Mr. TURNER, Mr. JORDAN, and Mr. CAREY) introduced the fol- lowing bill; which was referred to the Committee on Ways and Means A BILL To exclude certain amounts relating to compensating victims of the East Palestine train derailment, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. EAST PALESTINE DISASTER RELIEF PAYMENTS. 3 (a) DISASTER RELIEF PAYMENTS TO VICTIMS OF 4 EAST PALESTINE TRAIN DERAILMENT.—The East Pal- 5 estine train derailment is hereby deemed to be a qualified 6 disaster for the purposes of section 139(c) of the Internal 7 Revenue Code of 1986. 8 VerDate Sep 11 2014 04:59 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1270.IH H1270 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1270 IH (b) EXCLUSION FROM GROSS INCOME OF BUSINESS 1 INTERRUPTION PAYMENTS.—For purposes of the Internal 2 Revenue Code of 1986, gross income does not include any 3 amounts provided to a taxpayer to compensate such tax- 4 payer for lost business income resulting from the East 5 Palestine train derailment by a— 6 (1) Federal, State, or local government agency, 7 (2) Norfolk Southern Railway, or 8 (3) any subsidiary, insurer, or agent of Norfolk 9 Southern Railway or any related person. 10 (c) TRAIN DERAILMENT.—For purposes of this sec- 11 tion, the term ‘‘East Palestine train derailment’’ means 12 the derailment of a train in East Palestine, Ohio, on Feb- 13 ruary 3, 2023. 14 (d) EFFECTIVE DATE.—This section shall apply to 15 amounts received on or after February 3, 2023. 16 Æ VerDate Sep 11 2014 04:59 Mar 16, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\H1270.IH H1270 kjohnson on DSK79L0C42PROD with BILLS

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