Disaster Mitigation and Tax Parity Act of 2021

Bill: 117-s-2432
Sponsor: full_name: Sen. Feinstein, Dianne [D-CA]
Introduced: 2021-07-22
Policy area: Taxation
Subjects: Disaster relief and insurance

Income tax exclusion

Natural disasters

Residential rehabilitation and home repair

State and local government operations
Latest action: action_date: 2022-09-08
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.

Summaries:
action_date: 2021-07-22
action_desc: Introduced in Senate
text: <p><b>Disaster Mitigation and Tax Parity Act of 2021</b></p> <p>This bill excludes from gross income, for income tax purposes, any qualified catastrophe mitigation payment made under a state-based catastrophe loss mitigation program. A <i>qualified catastrophe mitigation payment</i> means any amount received for making improvements to an individual's residence for the sole purpose of reducing the damage that would be done to such residence by a windstorm, earthquake, or wildfire.</p>

tv_txt: II 117th CONGRESS 1st Session S. 2432 IN THE SENATE OF THE UNITED STATES July 22, 2021 Mrs. Feinstein (for herself, Mr. Burr , Mr. Padilla , and Mr. Tillis ) 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 amounts received from State-based catastrophe loss mitigation programs.

1. Short title This Act may be cited as the Disaster Mitigation and Tax Parity Act of 2021 . 2. Exclusion of amounts received from state-based catastrophe loss mitigation programs (a) In general Section 139 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h) State-Based catastrophe loss mitigation programs (1) In general Gross income shall not include any amount received by an individual as a qualified catastrophe mitigation payment under a program established by— (A) a State, (B) a political subdivision or instrumentality thereof, or (C) an entity established under State charter, for the purpose of making such payments. (2) Qualified catastrophe mitigation payment For purposes of this section, the term qualified catastrophe mitigation payment means any amount which is received by an individual to make improvements to such individual’s residence for the sole purpose of reducing the damage that would be done to such residence by a windstorm, earthquake, or wildfire. (3) No increase in basis Rules similar to the rules of subsection (g)(3) shall apply in the case of this subsection. . (b) Conforming amendments (1) Section 139(d) is amended by striking and qualified and inserting , qualified catastrophe mitigation payments, and qualified . (2) Section 139(i) (as redesignated by subsection (a)) is amended by striking or qualified and inserting , qualified catastrophe mitigation payment, or qualified . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021.