I
107TH CONGRESS
1ST SESSION
H. R. 1940
To provide that no Federal income tax shall be imposed on amounts received
by victims of the Nazi regime or their heirs or estates, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 22, 2001
Mr. 
NADLER
(for 
himself, 
Mr. 
WELLER, 
Ms. 
SCHAKOWSKY, 
Mr.
LATOURETTE, Mr. WEINER, Mr. CARDIN, Mr. BERMAN, Mr. ENGEL, and
Mr. WAXMAN) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Government Reform, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To provide that no Federal income tax shall be imposed
on amounts received by victims of the Nazi regime or
their heirs or estates, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Holocaust Victims Tax
Fairness Act of 2001’’.
SEC. 2. NO FEDERAL INCOME TAX ON RESTITUTION RE-
CEIVED BY VICTIMS OF THE NAZI REGIME OR
THEIR HEIRS OR ESTATES.
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, any excludable restitution payments
received by an eligible individual (or the individual’s heirs
or estate)—
(1) shall not be included in gross income; and
(2) shall not be taken into account for purposes
of applying any provision of such Code which takes
into account excludable income in computing ad-
justed gross income, including section 86 of such
Code (relating to taxation of Social Security bene-
fits).
For purposes of such Code, the basis of any property re-
ceived by an eligible individual (or the individual’s heirs
or estate) as part of an excludable restitution payment
shall be the fair market value of such property as of the
time of the receipt.
(b) COORDINATION WITH FEDERAL MEANS-TESTED
PROGRAMS.—
(1) IN
GENERAL.—Any excludable restitution
payment shall be disregarded in determining eligi-
bility for, and the amount of benefits or services to
be provided under, any Federal or federally assisted
proved August 1, 1994 (Public Law 103–286; 42
U.S.C. 1437a note), and nothing in that Act shall
be construed to override any right or requirement
under this Act.
(c) ELIGIBLE INDIVIDUAL.—For purposes of this sec-
tion, the term ‘‘eligible individual’’ means a person who
was persecuted for racial or religious reasons by Nazi Ger-
many, any other Axis regime, or any other Nazi-controlled
or Nazi-allied country.
(d) EXCLUDABLE
RESTITUTION
PAYMENT.—For
purposes of this section, the term ‘‘excludable restitution
payment’’ means any payment or distribution to an indi-
vidual (or the individual’s heirs or estate) which—
(1) is payable by reason of the individual’s sta-
tus as an eligible individual, including any amount
payable by any foreign country, the United States of
America, or any other foreign or domestic entity, or
a fund established by any such country or entity,
any amount payable as a result of a final resolution
of a legal action, and any amount payable under a
law providing for payments or restitution of prop-
erty;
(2) constitutes the direct or indirect return of,
or compensation or reparation for, assets stolen or
hidden from, or otherwise lost to, the individual be-
fore, during, or immediately after World War II by
reason of the individual’s status as an eligible indi-
vidual, including any proceeds of insurance under
policies issued on eligible individuals by European
insurance companies immediately before and during
World War II; or
(3) consists of interest which is payable as part
of any payment or distribution described in para-
graph (1) or (2).
(e) EFFECTIVE DATE.—
(1) IN GENERAL.—This section shall apply to
any amount received on or after January 1, 2000.
(2) NO INFERENCE.—Nothing in this Act shall
be construed to create any inference with respect to
the proper tax treatment of any amount received be-
fore January 1, 2000.
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