I 

114TH CONGRESS 

2D SESSION H. R. 5610 

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 

JUNE 28, 2016 

Mr. THOMPSON of California (for himself and Mr. COOK) 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. 

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 Tax Incentive Act of 2016’’. 


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1 SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE2 BASED EARTHQUAKE LOSS MITIGATION PRO3 GRAMS. 

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 amount received as a qualified earthquake mitigation 

11 payment. 

12 ‘‘(b) QUALIFIED EARTHQUAKE MITIGATION PAY13 MENT.—For purposes of this section— 

14 ‘‘(1) QUALIFIED EARTHQUAKE MITIGATION

15 PAYMENT.—The term ‘qualified earthquake mitiga16 tion payment’ means any amount which is received 

17 as a loan, loan forgiveness, grant, credit, rebate, 

18 voucher, or other financial incentive pursuant to an 

19 earthquake loss mitigation program established by a 

20 State, or agency, instrumentality, or political sub21 division thereof, by a residential property owner or 

22 occupant to assist with expenses paid, or obligations 

23 incurred, for earthquake loss mitigation. 

24 ‘‘(2) EARTHQUAKE LOSS MITIGATION PRO25 GRAM.—The term ‘earthquake loss mitigation pro26 gram’ includes a program established by a State, or 


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1 agency, instrumentality, or political subdivision 

2 thereof, by itself or together with— 

3 ‘‘(A) an organization described in section 

4 501(c) and exempt from tax under section 

5 501(a), 

6 ‘‘(B) an organization determined to be ex7 empt from State taxes pursuant to the laws of 

8 the relevant State, or 

9 ‘‘(C) a public instrumentality of a State 

10 pursuant to a joint exercise of powers. 

11 ‘‘(3) EARTHQUAKE LOSS MITIGATION.—The 

12 term ‘earthquake loss mitigation’ means an activity 

13 that reduces seismic risks to a residential structure 

14 or its contents. 

15 ‘‘(4) SEISMIC.—The term ‘seismic’ has the 

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

17 Earthquake Hazards Reduction Act of 1977 (42 

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

19 ‘‘(5) NO INCREASE IN BASIS.—Notwithstanding 

20 any other provision of this subtitle, no increase in 

21 the basis or adjusted basis of any property shall re22 sult from any amount excluded under this subsection 

23 with respect to such property. 

24 ‘‘(c) DENIAL OF DOUBLE BENEFIT.—Notwith25 standing any other provision of this subtitle, no deduction 


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1 or credit shall be allowed for, or by reason of, any expendi2 ture to the extent of the amount excluded under sub3 section (a) for any qualified earthquake mitigation pay4 ment which was provided with respect to such expendi5 ture.’’. 

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

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

8 is amended by inserting after the item relating to section 

9 139F the following new item: 

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

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2015. 

Æ 


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