Calendar No. 398

103D CONGRESS

2D SESSION S. 1814

[Report No. 103–244]

A BILL

To amend the Internal Revenue Code of 1986 to

ing year.ments in the year of the disaster or in the followincome crop insurance proceeds and disaster payprovide that a taxpayer may elect to include in

APRIL 5, 1994

Reported under authority of the order of the Senate of

amendments and an amendment to the title.March 22 (legislative day, February 22), 1994, with
Calendar No. 398

103D CONGRESS

2D SESSION S. 1814

[Report No. 103–244]

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.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 1 (legislative day, JANUARY 25), 1993

Mr. DASCHLE (for himself, Mr. HARKIN, Mr. GRASSLEY, Mr. FEINGOLD, Mr.

BOREN, Mr. WELLSTONE, Mr. BREAUX, Mr. KOHL, Mr. DOLE, Mr.

CONRAD, Mr. DORGAN, Mr. DURENBERGER, Mr. LEAHY, Mrs. KASSEBAUM, Mr. EXON, Mr. PRESSLER, Mr. BUMPERS, and Mr. LOTT) introduced the following bill; which was read twice and referred to the Committee on Finance

APRIL 5, 1994

Reported under authority of the order of the Senate of March 22 (legislative

day, February 22), 1994, by Mr. MOYNIHAN, with amendments and an

amendment to the title

[Omit the part struck through and insert the part printed in italic]

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.
2

•S 1814 RS

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

3 SECTION 1. SPECIAL RULE FOR CROP INSURANCE PRO4 CEEDS AND DISASTER PAYMENTS.

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

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

7 insurance proceeds and disaster payments) is amended to

8 read as follows:

9 ‘‘(d) SPECIAL RULE FOR CROP INSURANCE PRO10 CEEDS AND DISASTER PAYMENTS.—

11 ‘‘(1) GENERAL RULE.—In the case of any pay12 ment described in paragraph (2), a taxpayer report13 ing on the cash receipts and disbursements method

14 of accounting—

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

16 received in the taxable year of destruction or

17 damage of crops as having been received in the

18 following taxable year if the taxpayer estab19 lishes that, under the taxpayer’s practice, in20 come from such crops involved would have been

21 reported in the a following taxable year, or

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

23 received in the a taxable year following the tax24 able year of the destruction or damage of crops

25 as having been received in the taxable year of
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•S 1814 RS

1 destruction or damage, if the taxpayer estab2 lishes that, under the taxpayer’s practice, in3 come from such crops involved would have been

4 reported in the taxable year of destruction or

5 damage.

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

7 this subsection, a payment is described in this para8 graph if such payment—

9 ‘‘(A) is insurance proceeds received on ac10 count of destruction or damage to crops, or

11 ‘‘(B) is disaster assistance received under

12 any Federal law as a result of—

13 ‘‘(i) destruction or damage to crops

14 caused by drought, flood, or other natural

15 disaster, or

16 ‘‘(ii) inability to plant crops because

17 of such a disaster.’’.

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

19 subsection (a) applies to payments received after Decem20 ber 31, 1992, as a result of destruction or damage occur21 ring after such date.
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•S 1814 RS

1 SEC. 2. TECHNICAL CORRECTION REGARDING INDEXATION

2 OF THRESHOLD APPLICABLE TO LUXURY

3 AUTOMOBILE EXCISE TAX.

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

5 the Internal Revenue Code of 1986 (relating to inflation ad6 justment) is amended to read as follows:

7 ‘‘(e) INFLATION ADJUSTMENT.—

8 ‘‘(1) IN GENERAL.—In the case of any calendar

9 year after 1993, the $30,000 amount in subsection (a)

10 and section 4003(a) shall be increased by an amount

11 equal to—

12 ‘‘(A) $30,000, multiplied by

13 ‘‘(B) the cost-of-living adjustment under sec14 tion 1(f)(3) for such calendar year, determined

15 by substituting ‘calendar year 1990’ for ‘cal16 endar year 1992’ in subparagraph (B) thereof.

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

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

19 amount shall be rounded to the next lowest multiple

20 of $2,000.’’

21 (b) EFFECTIVE DATE.—The amendment made by sub22 section (a) shall take effect on January 1, 1995.

Amend the title so as to read: ‘‘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 correc-
5

•S 1814 RS

tion regarding indexation of the threshold applicable to

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