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I
116TH CONGRESS
1ST SESSION H. R. 5494
To amend the Internal Revenue Code of 1986 to exclude from gross income
amounts received from State-based catastrophe loss mitigation programs.
IN THE HOUSE OF REPRESENTATIVES
DECEMBER 19, 2019
Mr. THOMPSON of California (for himself, Mr. CALVERT, Ms. SEWELL of Ala-
bama, Mr. RICE of South Carolina, Mr. ROUZER, Mr. GARAMENDI, Ms.
SPEIER, Mr. GOMEZ, Ms. JUDY CHU of California, Mr. PANETTA, Mr.
COOK, Mr. BERA, Ms. SA´NCHEZ, and Mr. AGUILAR) introduced the fol-
lowing 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
catastrophe loss mitigation programs.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Catastrophe Loss Miti-
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gation Incentive and Tax Parity Act of 2019’’.
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•HR 5494 IH
SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-
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BASED
CATASTROPHE
LOSS
MITIGATION
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PROGRAMS.
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(a) IN GENERAL.—Section 139 of the Internal Rev-
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enue Code of 1986 is amended by redesignating subsection
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(h) as subsection (i) and by inserting after subsection (g)
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the following new subsection:
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‘‘(h) STATE-BASED CATASTROPHE LOSS MITIGATION
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PROGRAMS.—
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‘‘(1) IN GENERAL.—Gross income shall not in-
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clude any amount received by an individual as a
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qualified catastrophe mitigation payment under a
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program established by a State, or a political sub-
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division or instrumentality thereof, for the purpose
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of making such payments.
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‘‘(2) QUALIFIED
CATASTROPHE
MITIGATION
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PAYMENT.—For purposes of this section, the term
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‘qualified catastrophe mitigation payment’ means
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any amount which is received by an individual to
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make improvements to such individual’s residence
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for the sole purpose of reducing the damage that
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would be done to such residence by a windstorm,
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earthquake, or wildfire.
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‘‘(3) NO INCREASE IN BASIS.—Rules similar to
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the rules of subsection (g)(3) shall apply in the case
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of this subsection.’’.
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•HR 5494 IH
(b) CONFORMING AMENDMENTS.—
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(1) Section 139(d) is amended by striking ‘‘and
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qualified’’ and inserting ‘‘, qualified catastrophe
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mitigation payments, and qualified’’.
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(2) Section 139(i) (as redesignated by sub-
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section (a)) is amended by striking ‘‘or qualified’’
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and inserting ‘‘, qualified catastrophe mitigation
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payment, or qualified’’.
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(c) EFFECTIVE DATE.—The amendments made by
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this section shall apply to taxable years beginning after
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December 31, 2019.
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Æ
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