I 
112TH CONGRESS 
2D SESSION 
H. R. 6316 
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 
AUGUST 2, 2012 
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 ex-
change for services. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXCLUSION FROM INCOME AND EMPLOYMENT 
TAXES FOR REAL PROPERTY TAX ABATE-
MENTS IN EXCHANGE FOR SERVICES. 
(a) INCOME TAXES.— 
(1) IN GENERAL.—Part III of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 (re-
VerDate Mar 15 2010 
01:42 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6316.IH
H6316
jbell on DSK7SPTVN1PROD with BILLS
lating to items specifically excluded from gross in-
come) is amended by inserting before section 140 
the following new section: 
‘‘SEC. 139F. REAL PROPERTY TAX ABATEMENTS IN EX-
CHANGE FOR SERVICES. 
‘‘(a) IN GENERAL.—In the case of a qualified indi-
vidual, gross income shall not include any real property 
tax abatement received under a State program, or a local 
program under specific authority of State law, in which 
the taxpayer receives such abatement in exchange for serv-
ices. 
‘‘(b) QUALIFIED INDIVIDUAL.—For purposes of sub-
section (a), the term ‘qualified individual’ means any indi-
vidual who— 
‘‘(1) has attained age 60, or 
‘‘(2) is disabled (within the meaning of section 
72(m)(7)).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part III of subchapter B of chapter 1 of 
such Code is amended by inserting after the item re-
lating to section 139B the following new item: 
‘‘Sec. 139F. Real property tax abatements in exchange for services.’’. 
(b) EMPLOYMENT TAXES.— 
(1) IN
GENERAL.—Paragraph (7) of section 
3121(b) of such Code is amended by striking ‘‘or’’ 
at the end of subparagraph (E), by inserting ‘‘or’’ 
VerDate Mar 15 2010 
01:42 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6316.IH
H6316
jbell on DSK7SPTVN1PROD with BILLS
at the end of subparagraph (F), and by inserting 
after subparagraph (F) the following: 
‘‘(G) service under a State program in 
which the taxpayer in exchange for services re-
ceives an abatement of real property taxes 
which is excluded from income under section 
139F;’’. 
(2) CONFORMING AMENDMENTS TO SOCIAL SE-
CURITY ACT.—Section 210(a)(7) of the Social Secu-
rity Act (42 U.S.C. 410(a)(7)) is amended by strik-
ing ‘‘or’’ at the end of subparagraph (E), by striking 
the period at the end of subparagraph (F) and in-
serting ‘‘,
or’’, and by inserting after subparagraph 
(F) the following: 
‘‘(G) service under a State program in 
which the taxpayer in exchange for services re-
ceives an abatement of real property taxes 
which is excluded from income under section 
139F of the Internal Revenue Code of 1986.’’. 
(c) EFFECTIVE DATES.— 
(1) The amendments made by subsection (a) 
shall apply to taxable years beginning after Decem-
ber 31, 2012. 
VerDate Mar 15 2010 
01:42 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6316.IH
H6316
jbell on DSK7SPTVN1PROD with BILLS
(2) The amendments made by subsection (b) 
shall apply to service performed after December 31, 
2012. 
Æ 
VerDate Mar 15 2010 
01:42 Aug 15, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H6316.IH
H6316
jbell on DSK7SPTVN1PROD with BILLS