Earthquake Mitigation Tax Incentive Act of 2016

Bill: 114-hr-5610
Sponsor: full_name: Rep. Thompson, Mike [D-CA-5]
Introduced: 2016-06-28
Policy area: Taxation
Subjects: Building construction

Income tax exclusion

Natural disasters

Residential rehabilitation and home repair
Latest action: action_date: 2016-06-28
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-06-28
action_desc: Introduced in House
text: <p><b>Earthquake Mitigation Tax Incentive Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to exclude from gross income any amount received as a qualified earthquake mitigation payment. A qualified earthquake mitigation payment is any amount received by a residential property owner or occupant under an earthquake loss mitigation program 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. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5610 IN THE HOUSE OF REPRESENTATIVES June 28, 2016 Mr. Thompson of California (for himself and Mr. Cook ) 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 amounts received from State-based earthquake loss mitigation programs.

1. Short title This Act may be cited as the Earthquake Mitigation Tax Incentive Act of 2016 . 2. Exclusion of amounts received from 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 139F the following new section: 139G. State-based earthquake loss mitigation programs (a) In general Gross income shall not include any amount received as a qualified earthquake mitigation payment. (b) Qualified earthquake mitigation payment For purposes of this section— (1) Qualified earthquake mitigation payment The term qualified earthquake mitigation payment means any amount which is received as a loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive pursuant to an earthquake loss mitigation program established by a State, or agency, instrumentality, or political subdivision thereof, by a residential property owner or occupant to assist with expenses paid, or obligations incurred, for earthquake loss mitigation. (2) Earthquake loss mitigation program The term earthquake loss mitigation program includes a program established by a State, or agency, instrumentality, or political subdivision thereof, by itself or together with— (A) an organization described in section 501(c) and exempt from tax under section 501(a), (B) an organization determined to be exempt from State taxes pursuant to the laws of the relevant State, or (C) a public instrumentality of a State pursuant to a joint exercise of powers. (3) Earthquake loss mitigation The term earthquake loss mitigation means an activity that reduces seismic risks to a residential structure or its contents. (4) 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) ). (5) 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. (c) 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 payment 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 139F the following new item: Sec. 139G. State-based earthquake loss mitigation programs. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2015.