CERTS Tax Exemption Act

II 118TH CONGRESS 1ST SESSION S. 1944 To exempt grants received under the Coronavirus Economic Relief for Transportation Services (CERTS) Act from Federal taxation. IN THE SENATE OF THE UNITED STATES JUNE 13, 2023 Mrs. BLACKBURN (for herself, Mr. REED, Ms. COLLINS, Mr. CASEY, Mr. DAINES, and Mrs. SHAHEEN) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To exempt grants received under the Coronavirus Economic Relief for Transportation Services (CERTS) Act from Federal taxation. 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 ‘‘CERTS Tax Exemp- 4 tion Act’’. 5 SEC. 2. EXEMPTION OF GRANTS FROM TAXATION. 6 (a) IN GENERAL.—Section 421 of the Coronavirus 7 Economic Relief for Transportation Services Act (15 8 VerDate Sep 11 2014 23:08 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1944.IS S1944 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1944 IS U.S.C. 9111) is amended by adding at the end the fol- 1 lowing new subsection: 2 ‘‘(g) TAX TREATMENT.—For purposes of the Inter- 3 nal Revenue Code of 1986— 4 ‘‘(1) no amount shall be included in the gross 5 income of the eligible provider of transportation 6 services by reason of a grant under this section, 7 ‘‘(2) no deduction shall be denied, no tax at- 8 tribute shall be reduced, and no basis increase shall 9 be denied, by reason of the exclusion from gross in- 10 come provided by paragraph (1), and 11 ‘‘(3) in the case of an eligible provider of trans- 12 portation services which is a partnership or S cor- 13 poration— 14 ‘‘(A) any amount excluded from income by 15 reason of paragraph (1) shall be treated as tax 16 exempt income for purposes of sections 705 and 17 1366 of such Code, and 18 ‘‘(B) except as provided by the Secretary 19 of the Treasury (or the Secretary’s delegate), 20 any increase in the adjusted basis of a partner’s 21 interest in a partnership under section 705 of 22 such Code with respect to any amount described 23 in subparagraph (A) shall equal the partner’s 24 distributive share of deductions resulting from 25 VerDate Sep 11 2014 23:08 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1944.IS S1944 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1944 IS costs described in subsection (d) which are paid 1 using a grant under this section.’’. 2 (b) EFFECTIVE DATE.—The amendment made by 3 this section shall apply to taxable years ending after the 4 date of the enactment of the Coronavirus Economic Relief 5 for Transportation Services Act. 6 Æ VerDate Sep 11 2014 23:08 Jul 06, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1944.IS S1944 pbinns on DSKJLVW7X2PROD with $$_JOB