H.R. 1691 - Earthquake Mitigation Incentive and Tax Parity Act of 2017

115TH CONGRESS
1ST SESSION

H.R. 1691

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

MARCH 22, 2017

Mr. THOMPSON of California (for himself, Mr. COOK, Mr. SCHIFF, and Mr. AGUILAR)
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 Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Earthquake Mitigation Incentive and Tax Parity Act of 2017”.

SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED EARTHQUAKE LOSS MITIGATION PROGRAMS.

(a) IN GENERAL. — Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139F the following new section:

“SEC. 139G. STATE-BASED EARTHQUAKE LOSS MITIGATION PROGRAMS.

“(a) IN GENERAL. — Gross income shall not include any amount received as a qualified earthquake mitigation payment.

“(b) QUALIFIED EARTHQUAKE MITIGATION PAYMENT. — For purposes of this section —

“(1) QUALIFIED EARTHQUAKE MITIGATION PAYMENT. — The term ‘qualified earthquake mitigation payment’ means any amount which is received as a loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive pursuant to an earthquake loss mitigation program established by a State, or agency, instrumentality, or political subdivision thereof, by a residential property owner or occupant to assist with expenses paid, or obligations incurred, for earthquake loss mitigation.

“(2) EARTHQUAKE LOSS MITIGATION PROGRAM. — The term ‘earthquake loss mitigation program’ includes a program established by a State, or agency, instrumentality, or political subdivision thereof, by itself or together with —

“(A) an organization described in section 501(c) and exempt from tax under section 501(a),

“(B) an organization determined to be exempt from State taxes pursuant to the laws of the relevant State, or

“(C) a public instrumentality of a State pursuant to a joint exercise of powers.

“(3) EARTHQUAKE LOSS MITIGATION. — The term ‘earthquake loss mitigation’ means an activity that reduces seismic risks to a residential structure or its contents.

“(4) SEISMIC. — The term ‘seismic’ has the meaning given such term by section 4(3) of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7703(3)).

“(5) NO INCREASE IN BASIS. — Notwithstanding any other provision of this subtitle, no increase in the basis or adjusted basis of any property shall result from any amount excluded under this subsection with respect to such property.

“(c) DENIAL OF DOUBLE BENEFIT. — Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount excluded under subsection (a) for any qualified earthquake mitigation payment which was provided with respect to such expenditure.”.

(b) CLERICAL AMENDMENT. — The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139F the following new item:

“Sec. 139G. State-based earthquake loss mitigation programs.”.

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2016.