Title: Earthquake Mitigation and Tax Parity Act
Policy area: Taxation

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.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1058 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 1058

To amend the Internal Revenue Code of 1986 to exclude from gross income 
 earthquake loss mitigation received under State-based earthquake loss 
                          mitigation programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 8, 2019

 Ms. Harris (for herself and Mrs. Feinstein) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
 earthquake loss mitigation received under State-based earthquake loss 
                          mitigation programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Earthquake Mitigation and Tax Parity 
Act''.

SEC. 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 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139G the following new section:

``SEC. 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' 
        means any property or service that reduces seismic risks to a 
        residential structure or its contents.
            ``(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' has the meaning given 
        such term by section 4(3) of the Earthquake Hazards Reduction 
        Act of 1977 (42 U.S.C. 7703(3)).
    ``(c) Earthquake Loss Mitigation Program.--For purposes of this 
section, the term `earthquake loss mitigation program' means any 
program which provides residential property owners or occupants with 
earthquake loss mitigation and which is established by a State, or 
agency, instrumentality, or political subdivision thereof, by itself or 
together with--
            ``(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.
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