I
107TH CONGRESS
1ST SESSION
H. R. 925
To amend the Internal Revenue Code of 1986 to exclude from gross income
the value of certain real property tax reduction vouchers received by
senior citizens who provide volunteer services under a State program.
IN THE HOUSE OF REPRESENTATIVES
MARCH 7, 2001
Mr. NEAL of Massachusetts (for himself, Mr. MOAKLEY, Mr. TIERNEY, Mr.
FRANK, Mr. MCGOVERN, Mr. CAPUANO, and Mr. MARKEY) 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 gross income the value of certain real property
tax reduction vouchers received by senior citizens who
provide volunteer services under a State program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. EXCLUSION FROM GROSS INCOME FOR CER-
TAIN 
REAL 
PROPERTY 
TAX 
REDUCTION
VOUCHERS RECEIVED BY SENIOR CITIZENS
WHO PROVIDE VOLUNTEER SERVICES UNDER
A STATE PROGRAM.
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
items specifically excluded from gross income) is amended
by redesignating section 139 as section 139A and by in-
serting after section 138 the following new section:
‘‘SEC. 139. REAL PROPERTY TAX REDUCTION VOUCHERS
RECEIVED BY SENIOR CITIZENS WHO PRO-
VIDE VOLUNTEER SERVICES UNDER A STATE
PROGRAM.
‘‘(a) EXCLUSION.—In the case of an individual who
has attained age 65, gross income shall not include the
value of any real property tax reduction voucher received
during the taxable year for services performed by such in-
dividual.
‘‘(b) MAXIMUM EXCLUSION.—The amount excluded
from gross income under subsection (a) for the taxable
year by each individual receiving a real property tax reduc-
tion voucher shall not exceed $500.
‘‘(c) REAL PROPERTY TAX REDUCTION VOUCHER.—
For purposes of this section, the term ‘real property tax
reduction voucher’ means any voucher—
‘‘(1) which is issued by a governmental unit as
part of a program under which individuals who have
attained age 65 perform volunteer services for the
benefit of such governmental unit in exchange for
such voucher, and
‘‘(2) which may be used by such individuals
only toward satisfying their liability for real property
taxes imposed by such governmental unit.
‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction
shall be allowed under this chapter for any real property
tax paid using any real property tax reduction voucher to
the extent that the amount of such voucher is excluded
from gross income under this section.’’
(b) EXEMPTION FROM EMPLOYMENT TAXES.—
(1) SOCIAL SECURITY TAXES.—
(A) Paragraph (20) of section 3121(a) of
such Code is amended by striking ‘‘or 132’’ and
inserting ‘‘132, or 139’’.
(B) Paragraph (17) of section 209(a) of
the Social Security Act is amended by striking
‘‘or 132’’ and inserting ‘‘132, or 139’’.
(2) UNEMPLOYMENT
COMPENSATION
TAX.—
Paragraph (16) of section 3306(b) of such Code is
amended by striking ‘‘or 132’’ and inserting ‘‘132,
or 139’’.
(3) WAGE WITHHOLDING.—Paragraph (19) of
section 3401(a) of such Code is amended by striking
‘‘or 132’’ and inserting ‘‘132, or 139’’.
(c) CLERICAL AMENDMENT.—The table of sections
for part III of subchapter B of chapter 1 of such Code
is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 139. Real property tax reduction vouchers received by sen-
ior citizens who provide volunteer services under a
State program.
‘‘Sec. 139A. Cross references to other Acts.’’
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
shall apply to taxable years beginning after Decem-
ber 31, 2001.
(2) EMPLOYMENT
TAXES.—The amendments
made by subsection (b) shall apply to remuneration
paid after December 31, 2001.
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