I
103D CONGRESS
2D SESSION
H. R. 4634
To amend the Internal Revenue Code of 1986 to provide that a taxpayer
may elect to include in income crop insurance proceeds and disaster
payments in the year of the disaster or in the following year, to provide
for a technical correction regarding indexation of the threshold applicable
to the luxury automobile excise tax, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 23, 1994
Mr. MINGE 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 provide
that a taxpayer may elect to include in income crop
insurance proceeds and disaster payments in the year
of the disaster or in the following year, to provide for
a technical correction regarding indexation of the thresh-
old applicable to the luxury automobile excise tax, 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. SPECIAL RULE FOR CROP INSURANCE PRO-
CEEDS AND DISASTER PAYMENTS.
(a) IN GENERAL.—Section 451(d) of the Internal
Revenue Code of 1986 (relating to special rule for crop
insurance proceeds and disaster payments) is amended to
read as follows:
‘‘(d) SPECIAL RULE FOR CROP INSURANCE PRO-
CEEDS AND DISASTER PAYMENTS.—
‘‘(1) GENERAL RULE.—In the case of any pay-
ment described in paragraph (2), a taxpayer report-
ing on the cash receipts and disbursements method
of accounting—
‘‘(A) may elect to treat any such payment
received in the taxable year of destruction or
damage of crops as having been received in the
following taxable year if the taxpayer estab-
lishes that, under the taxpayer’s practice, in-
come from such crops involved would have been
reported in a following taxable year, or
‘‘(B) may elect to treat any such payment
received in a taxable year following the taxable
year of the destruction or damage of crops as
having been received in the taxable year of de-
struction or damage, if the taxpayer establishes
that, under the taxpayer’s practice, income
from such crops involved would have been re-
ported in the taxable year of destruction or
damage.
‘‘(2) PAYMENTS DESCRIBED.—For purposes of
this subsection, a payment is described in this para-
graph if such payment—
‘‘(A) is insurance proceeds received on ac-
count of destruction or damage to crops, or
‘‘(B) is disaster assistance received under
any Federal law as a result of—
‘‘(i) destruction or damage to crops
caused by drought, flood, or other natural
disaster, or
‘‘(ii) inability to plant crops because
of such a disaster.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to payments received after Decem-
ber 31, 1992, as a result of destruction or damage occur-
ring after such date.
SEC. 2. TECHNICAL CORRECTION REGARDING INDEXATION
OF THRESHOLD APPLICABLE TO LUXURY
AUTOMOBILE EXCISE TAX.
(a) IN GENERAL.—Subsection (e) of section 4001 of
the Internal Revenue Code of 1986 (relating to inflation
adjustment) is amended to read as follows:
‘‘(e) INFLATION ADJUSTMENT.—
‘‘(1) IN GENERAL.—In the case of any calendar
year after 1993, the $30,000 amount in subsection
(a) and section 4003(a) shall be increased by an
amount equal to—
‘‘(A) $30,000, multiplied by
‘‘(B) the cost-of-living adjustment under
section 1(f)(3) for such calendar year, deter-
mined by substituting ‘calendar year 1990’ for
‘calendar year 1992’ in subparagraph (B)
thereof.
‘‘(2) ROUNDING.—If any amount as adjusted
under paragraph (1) is not a multiple of $2,000,
such amount shall be rounded to the next lowest
multiple of $2,000.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1995.
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