H.R. 435 - Excluding Pandemic Unemployment Compensation from Income Act

117TH CONGRESS
1ST SESSION

H.R. 435

To exclude from tax certain payments of Federal pandemic
unemployment compensation, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 21, 2021

Ms. VELÁZQUEZ introduced the following bill;
which was referred to the Committee on _____

A BILL

To exclude from tax certain payments of Federal pandemic unemployment compensation, and for other purposes.

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 "Excluding Pandemic Unemployment Compensation from Income Act".

SEC. 2. CERTAIN PAYMENTS OF FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION NOT INCLUDIBLE IN GROSS INCOME OR TAKEN INTO ACCOUNT IN DETERMINING CERTAIN MEANS-TESTED BENEFITS.

(a) EXCLUSION FROM GROSS INCOME. — For purposes of the Internal Revenue Code of 1986, gross income shall not include the amount specified in section 2104(b)(3) of the CARES Act to the extent such amount is received by the taxpayer pursuant to section 2102, 2104, or 2107 of such Act.

(b) DISREGARDED IN THE ADMINISTRATION OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PROGRAMS. — For purposes of section 6409 of the Internal Revenue Code of 1986, any amount excluded from gross income under subsection (a) shall be treated in the same manner as a refund under such Code.

(c) EFFECTIVE DATES. —

(1) EXCLUSION. — Subsection (a) shall apply to taxable years ending after the date of the enactment of the CARES Act.

(2) DISREGARD. — Subsection (b) shall apply to amounts received after the date of the enactment of the CARES Act.