Earthquake Mitigation Incentive and Tax Parity Act of 2019

I 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Earthquake Mitigation 4 Incentive and Tax Parity Act of 2019’’. 5 VerDate Sep 11 2014 04:32 Apr 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2053.IH H2053 kjohnson on DSK79L0C42 with BILLS 2 •HR 2053 IH SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE- 1 BASED EARTHQUAKE LOSS MITIGATION PRO- 2 GRAMS. 3 (a) IN GENERAL.—Part III of subchapter B of chap- 4 ter 1 of the Internal Revenue Code of 1986 is amended 5 by inserting after section 139G the following new section: 6 ‘‘SEC. 139H. STATE-BASED EARTHQUAKE LOSS MITIGATION 7 PROGRAMS. 8 ‘‘(a) IN GENERAL.—Gross income shall not include 9 any amount received as a qualified earthquake mitigation 10 payment. 11 ‘‘(b) QUALIFIED EARTHQUAKE MITIGATION PAY- 12 MENT.—For purposes of this section— 13 ‘‘(1) QUALIFIED EARTHQUAKE MITIGATION 14 PAYMENT.—The term ‘qualified earthquake mitiga- 15 tion payment’ means any amount which is received 16 as a loan, loan forgiveness, grant, credit, rebate, 17 voucher, or other financial incentive pursuant to an 18 earthquake loss mitigation program established by a 19 State, or agency, instrumentality, or political sub- 20 division thereof, by a residential property owner or 21 occupant to assist with expenses paid, or obligations 22 incurred, for earthquake loss mitigation. 23 ‘‘(2) EARTHQUAKE LOSS MITIGATION PRO- 24 GRAM.—The term ‘earthquake loss mitigation pro- 25 gram’ includes a program established by a State, or 26 VerDate Sep 11 2014 04:32 Apr 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2053.IH H2053 kjohnson on DSK79L0C42 with BILLS 3 •HR 2053 IH agency, instrumentality, or political subdivision 1 thereof, by itself or together with— 2 ‘‘(A) an organization described in section 3 501(c) and exempt from tax under section 4 501(a), 5 ‘‘(B) an organization determined to be ex- 6 empt from State taxes pursuant to the laws of 7 the relevant State, or 8 ‘‘(C) a public instrumentality of a State 9 pursuant to a joint exercise of powers. 10 ‘‘(3) EARTHQUAKE LOSS MITIGATION.—The 11 term ‘earthquake loss mitigation’ means an activity 12 that reduces seismic risks to a residential structure 13 or its contents. 14 ‘‘(4) SEISMIC.—The term ‘seismic’ has the 15 meaning given such term by section 4(3) of the 16 Earthquake Hazards Reduction Act of 1977 (42 17 U.S.C. 7703(3)). 18 ‘‘(5) NO INCREASE IN BASIS.—Notwithstanding 19 any other provision of this subtitle, no increase in 20 the basis or adjusted basis of any property shall re- 21 sult from any amount excluded under this subsection 22 with respect to such property. 23 ‘‘(c) DENIAL OF DOUBLE BENEFIT.—Notwith- 24 standing any other provision of this subtitle, no deduction 25 VerDate Sep 11 2014 04:32 Apr 13, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2053.IH H2053 kjohnson on DSK79L0C42 with BILLS 4 •HR 2053 IH or credit shall be allowed for, or by reason of, any expendi- 1 ture to the extent of the amount excluded under sub- 2 section (a) for any qualified earthquake mitigation pay- 3 ment which was provided with respect to such expendi- 4 ture.’’. 5 (b) CLERICAL AMENDMENT.—The table of sections 6 for part III of subchapter B of chapter 1 of such Code 7 is amended by inserting after the item relating to section 8 139G the following new item: 9 ‘‘Sec. 139H. State-based earthquake loss mitigation programs.’’. (c) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to taxable years beginning after 11 December 31, 2018. 12 Æ VerDate Sep 11 2014 04:32 Apr 13, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H2053.IH H2053 kjohnson on DSK79L0C42 with BILLS