I 

114TH CONGRESS 

1ST SESSION H. R. 2885 

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

employment taxes real property tax abatements for seniors and disabled 

individuals in exchange for services. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2015 

Ms. TSONGAS (for herself, Mr. NEAL, Mr. MCGOVERN, Mr. KENNEDY, Ms. 

CLARK of Massachusetts, Mr. MOULTON, Mr. CAPUANO, Mr. LYNCH, and 

Mr. KEATING) 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 income and employment taxes real property tax 

abatements for seniors and disabled individuals in exchange for services. 

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 ‘‘Senior and Retired 

5 Volunteers Act of 2015’’. 


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1 SEC. 2. EXCLUSION FROM INCOME AND EMPLOYMENT 

2 TAXES FOR REAL PROPERTY TAX ABATE3 MENTS IN EXCHANGE FOR SERVICES. 

4 (a) INCOME TAXES.— 

5 (1) IN GENERAL.—Part III of subchapter B of 

6 chapter 1 of the Internal Revenue Code of 1986 (re7 lating to items specifically excluded from gross in8 come) is amended by inserting before section 140 

9 the following new section: 

10 ‘‘SEC. 139F. REAL PROPERTY TAX ABATEMENTS IN EX11 CHANGE FOR SERVICES. 

12 ‘‘(a) IN GENERAL.—In the case of a qualified indi13 vidual, gross income shall not include any real property 

14 tax abatement received under a State program, or a local 

15 program under specific authority of State law, in which 

16 the taxpayer receives such abatement in exchange for serv17 ices. 

18 ‘‘(b) QUALIFIED INDIVIDUAL.—For purposes of sub19 section (a), the term ‘qualified individual’ means any indi20 vidual who— 

21 ‘‘(1) has attained age 60, or 

22 ‘‘(2) is disabled (within the meaning of section 

23 72(m)(7)).’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions for part III of subchapter B of chapter 1 of 


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1 such Code is amended by inserting before the item 

2 relating to section 140 the following new item: 

‘‘Sec. 139F. Real property tax abatements in exchange for services.’’. 

3 (b) EMPLOYMENT TAXES.— 

4 (1) IN GENERAL.—Section 3121(b)(7) of such 

5 Code is amended by striking ‘‘or’’ at the end of sub6 paragraph (E), by inserting ‘‘or’’ at the end of sub7 paragraph (F), and by inserting after subparagraph 

8 (F) the following: 

9 ‘‘(G) service under a State program in 

10 which the taxpayer in exchange for services re11 ceives an abatement of real property taxes 

12 which is excluded from income under section 

13 139F;’’. 

14 (2) CONFORMING AMENDMENTS TO SOCIAL SE15 CURITY ACT.—Section 210(a)(7) of the Social Secu16 rity Act (42 U.S.C. 410(a)(7)) is amended by strik17 ing ‘‘or’’ at the end of subparagraph (E), by striking 

18 the period at the end of subparagraph (F) and in19 serting ‘‘, or’’, and by inserting after subparagraph 

20 (F) the following: 

21 ‘‘(G) service under a State program in 

22 which the taxpayer in exchange for services re23 ceives an abatement of real property taxes 

24 which is excluded from income under section 

25 139F of the Internal Revenue Code of 1986.’’. 


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1 (c) EFFECTIVE DATES.— 

2 (1) The amendments made by subsection (a) 

3 shall apply to taxable years beginning after Decem4 ber 31, 2015. 

5 (2) The amendments made by subsection (b) 

6 shall apply to services performed after December 31, 

7 2015. 

Æ 


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