Earthquake Mitigation and Tax Parity Act

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. Short title This Act may be cited as the Earthquake Mitigation and Tax Parity Act 2. Exclusion of earthquake loss mitigation received under State-based earthquake loss mitigation programs (a) In general Part III of subchapter B of chapter 1 139H. State-based earthquake loss mitigation programs (a) In general Gross income shall not include any earthquake loss mitigation received by a residential property owner or occupant under a State-based earthquake loss mitigation program. (b) Earthquake loss mitigation For purposes of this section— (1) In general The term earthquake loss mitigation (2) Treatment of reimbursements, etc Such term shall include any payment, reimbursement, loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive for any property or service described in paragraph (1). (3) Seismic The term seismic 42 U.S.C. 7703(3) (c) Earthquake loss mitigation program For purposes of this section, the term earthquake loss mitigation program (1) an organization described in section 501(c) and exempt from tax under section 501(a), (2) an organization determined to be exempt from State taxes pursuant to the laws of the relevant State, or (3) a public instrumentality of a State pursuant to a joint exercise of powers. (d) Special rules (1) No increase in basis Notwithstanding any other provision of this subtitle, no increase in the basis or adjusted basis of any property shall result from any amount excluded under this subsection with respect to such property. (2) Denial of double benefit Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount excluded under subsection (a) for any qualified earthquake mitigation which was provided with respect to such expenditure. . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139G the following new item: Sec. 139H. State-based earthquake loss mitigation programs. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018.

Summary: Earthquake Mitigation and Tax Parity Act This bill modifies the requirements for calculating taxable income to exclude from gross income any earthquake loss mitigation received by a residential property owner or occupant under a state-based earthquake loss mitigation program. "Earthquake loss mitigation" is any property or service that reduces seismic risks to a residential structure or its contents. The term includes any payment, reimbursement, loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive for the property or service. The bill applies to earthquake loss mitigation programs established by a state (including an agency, instrumentality, or political subdivision of the state) or by a state with a tax-exempt organization or public instrumentality of the state.