I

103D CONGRESS

2D SESSION H. R. 4634

To amend the Internal Revenue Code of 1986 to provide that a taxpayer

may elect to include in income crop insurance proceeds and disaster

payments in the year of the disaster or in the following year, to provide

for a technical correction regarding indexation of the threshold applicable

to the luxury automobile excise tax, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 23, 1994

Mr. MINGE 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 provide

that a taxpayer may elect to include in income crop

insurance proceeds and disaster payments in the year

of the disaster or in the following year, to provide for

a technical correction regarding indexation of the threshold applicable to the luxury automobile excise tax, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SPECIAL RULE FOR CROP INSURANCE PRO2 CEEDS AND DISASTER PAYMENTS.

3 (a) IN GENERAL.—Section 451(d) of the Internal

4 Revenue Code of 1986 (relating to special rule for crop

5 insurance proceeds and disaster payments) is amended to

6 read as follows:

7 ‘‘(d) SPECIAL RULE FOR CROP INSURANCE PRO8 CEEDS AND DISASTER PAYMENTS.—

9 ‘‘(1) GENERAL RULE.—In the case of any pay10 ment described in paragraph (2), a taxpayer report11 ing on the cash receipts and disbursements method

12 of accounting—

13 ‘‘(A) may elect to treat any such payment

14 received in the taxable year of destruction or

15 damage of crops as having been received in the

16 following taxable year if the taxpayer estab17 lishes that, under the taxpayer’s practice, in18 come from such crops involved would have been

19 reported in a following taxable year, or

20 ‘‘(B) may elect to treat any such payment

21 received in a taxable year following the taxable

22 year of the destruction or damage of crops as

23 having been received in the taxable year of de24 struction or damage, if the taxpayer establishes

25 that, under the taxpayer’s practice, income

26 from such crops involved would have been re-
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1 ported in the taxable year of destruction or

2 damage.

3 ‘‘(2) PAYMENTS DESCRIBED.—For purposes of

4 this subsection, a payment is described in this para5 graph if such payment—

6 ‘‘(A) is insurance proceeds received on ac7 count of destruction or damage to crops, or

8 ‘‘(B) is disaster assistance received under

9 any Federal law as a result of—

10 ‘‘(i) destruction or damage to crops

11 caused by drought, flood, or other natural

12 disaster, or

13 ‘‘(ii) inability to plant crops because

14 of such a disaster.’’.

15 (b) EFFECTIVE DATE.—The amendment made by

16 subsection (a) applies to payments received after Decem17 ber 31, 1992, as a result of destruction or damage occur18 ring after such date.

19 SEC. 2. TECHNICAL CORRECTION REGARDING INDEXATION

20 OF THRESHOLD APPLICABLE TO LUXURY

21 AUTOMOBILE EXCISE TAX.

22 (a) IN GENERAL.—Subsection (e) of section 4001 of

23 the Internal Revenue Code of 1986 (relating to inflation

24 adjustment) is amended to read as follows:

25 ‘‘(e) INFLATION ADJUSTMENT.—
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1 ‘‘(1) IN GENERAL.—In the case of any calendar

2 year after 1993, the $30,000 amount in subsection

3 (a) and section 4003(a) shall be increased by an

4 amount equal to—

5 ‘‘(A) $30,000, multiplied by

6 ‘‘(B) the cost-of-living adjustment under

7 section 1(f)(3) for such calendar year, deter8 mined by substituting ‘calendar year 1990’ for

9 ‘calendar year 1992’ in subparagraph (B)

10 thereof.

11 ‘‘(2) ROUNDING.—If any amount as adjusted

12 under paragraph (1) is not a multiple of $2,000,

13 such amount shall be rounded to the next lowest

14 multiple of $2,000.’’

15 (b) EFFECTIVE DATE.—The amendment made by

16 subsection (a) shall take effect on January 1, 1995.

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