II 

115TH CONGRESS 

1ST SESSION S. 2104 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

earthquake loss mitigation received under State-based earthquake loss 

mitigation programs. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 8, 2017 

Ms. HARRIS (for herself and Mrs. FEINSTEIN) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income earthquake loss mitigation received 

under State-based earthquake loss mitigation programs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Earthquake Mitigation 

5 Incentive and Tax Parity Act of 2017’’. 


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1 SEC. 2. EXCLUSION OF EARTHQUAKE LOSS MITIGATION RE2 CEIVED UNDER STATE-BASED EARTHQUAKE 

3 LOSS MITIGATION PROGRAMS. 

4 (a) IN GENERAL.—Part III of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting after section 139F the following new section: 

7 ‘‘SEC. 139G. STATE-BASED EARTHQUAKE LOSS MITIGATION 

8 PROGRAMS. 

9 ‘‘(a) IN GENERAL.—Gross income shall not include 

10 any earthquake loss mitigation received by a residential 

11 property owner or occupant under a State-based earth12 quake loss mitigation program. 

13 ‘‘(b) EARTHQUAKE LOSS MITIGATION.—For pur14 poses of this section— 

15 ‘‘(1) IN GENERAL.—The term ‘earthquake loss 

16 mitigation’ means any property or service that re17 duces seismic risks to a residential structure or its 

18 contents. 

19 ‘‘(2) TREATMENT OF REIMBURSEMENTS, 

20 ETC.—Such term shall include any payment, reim21 bursement, loan, loan forgiveness, grant, credit, re22 bate, voucher, or other financial incentive for any 

23 property or service described in paragraph (1). 

24 ‘‘(3) SEISMIC.—The term ‘seismic’ has the 

25 meaning given such term by section 4(3) of the 


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1 Earthquake Hazards Reduction Act of 1977 (42 

2 U.S.C. 7703(3)). 

3 ‘‘(c) EARTHQUAKE LOSS MITIGATION PROGRAM.— 

4 For purposes of this section, the term ‘earthquake loss 

5 mitigation program’ means any program which provides 

6 residential property owners or occupants with earthquake 

7 loss mitigation and which is established by a State, or 

8 agency, instrumentality, or political subdivision thereof, by 

9 itself or together with— 

10 ‘‘(1) an organization described in section 501(c) 

11 and exempt from tax under section 501(a), 

12 ‘‘(2) an organization determined to be exempt 

13 from State taxes pursuant to the laws of the rel14 evant State, or 

15 ‘‘(3) a public instrumentality of a State pursu16 ant to a joint exercise of powers. 

17 ‘‘(d) SPECIAL RULES.— 

18 ‘‘(1) NO INCREASE IN BASIS.—Notwithstanding 

19 any other provision of this subtitle, no increase in 

20 the basis or adjusted basis of any property shall re21 sult from any amount excluded under this subsection 

22 with respect to such property. 

23 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—Notwith24 standing any other provision of this subtitle, no de25 duction or credit shall be allowed for, or by reason 


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1 of, any expenditure to the extent of the amount ex2 cluded under subsection (a) for any qualified earth3 quake mitigation which was provided with respect to 

4 such expenditure.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 for part III of subchapter B of chapter 1 of such Code 

7 is amended by inserting after the item relating to section 

8 139F the following new item: 

‘‘Sec. 139G. State-based earthquake loss mitigation programs.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2016. 

Æ 


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