I 

110TH CONGRESS 

2D SESSION H. R. 5484 

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 

FEBRUARY 25, 2008 

Mr. FRANK of Massachusetts 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. EXCLUSION FROM INCOME AND EMPLOYMENT 

4 TAXES FOR REAL PROPERTY TAX ABATE5 MENTS IN EXCHANGE FOR SERVICES. 

6 (a) INCOME TAXES.— 

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

8 chapter 1 of the Internal Revenue Code of 1986 (reVerDate Aug 31 2005 20:49 Feb 26, 2008 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5484.IH H5484

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1 lating to items specifically excluded from gross in2 come) is amended by inserting after section 139B 

3 the following new section: 

4 ‘‘SEC. 139C. REAL PROPERTY TAX ABATEMENTS IN EX5 CHANGE FOR SERVICES. 

6 ‘‘(a) IN GENERAL.—In the case of a qualified indi7 vidual, gross income shall not include any real property 

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

9 program under specific authority of State law, in which 

10 the taxpayer receives such abatement in exchange for serv11 ices. 

12 ‘‘(b) QUALIFIED INDIVIDUAL.—For purposes of sub13 section (a), the term ‘qualified individual’ means any indi14 vidual who— 

15 ‘‘(1) has attained age 60, or 

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

17 72(m)(7)).’’. 

18 (2) CLERICAL AMENDMENT.—The table of sec19 tions for part III of subchapter B of chapter 1 of 

20 such Code is amended by inserting after the item re21 lating to section 139B the following new item: 

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

22 (b) EMPLOYMENT TAXES.— 

23 (1) IN GENERAL.—Paragraph (7) of section 

24 3121(b) of such Code is amended by striking ‘‘or’’ 

25 at the end of subparagraph (E), by inserting ‘‘or’’ 


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1 at the end of subparagraph (F), and by inserting 

2 after subparagraph (F) the following: 

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

4 which the taxpayer in exchange for services re5 ceives an abatement of real property taxes 

6 which is excluded from income under section 

7 139C;’’. 

8 (2) CONFORMING AMENDMENTS TO SOCIAL SE9 CURITY ACT.—Section 210(a)(7) of the Social Secu10 rity Act (42 U.S.C. 410(a)(7)) is amended by strik11 ing ‘‘or’’ at the end of subparagraph (E), by striking 

12 the period at the end of subparagraph (F) and in13 serting ‘‘, or’’, and by inserting after subparagraph 

14 (F) the following: 

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

16 which the taxpayer in exchange for services re17 ceives an abatement of real property taxes 

18 which is excluded from income under section 

19 139C of the Internal Revenue Code of 1986.’’. 

20 (c) EFFECTIVE DATES.— 

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

22 shall apply to taxable years beginning after Decem23 ber 31, 2007. 


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

2 shall apply to service performed after December 31, 

3 2007. 

Æ 


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