CERTS Tax Exemption Act

Bill: 117-hr-7477
Sponsor: full_name: Rep. Panetta, Jimmy [D-CA-20]
Introduced: 2022-04-07
Policy area: Taxation
Subjects: Business expenses

Cardiovascular and respiratory health

Emergency medical services and trauma care

Income tax exclusion

Infectious and parasitic diseases

Marine and inland water transportation

Motor carriers

Transportation programs funding

Wages and earnings
Latest action: action_date: 2022-04-07
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2022-04-07
action_desc: Introduced in House
text: <p><strong>CERTS Tax Exemption Act</strong></p> <p>This bill excludes from income taxation grants to assist providers of transportation services affected by COVID-19.</p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7477 IN THE HOUSE OF REPRESENTATIVES April 7, 2022 Mr. Panetta (for himself, Mr. LaHood , Mr. Sires , and Mr. Rose ) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To exempt grants received under the Coronavirus Economic Relief for Transportation Services (CERTS) Act from Federal taxation.

1. Short title This Act may be cited as the CERTS Tax Exemption Act . 2. Exemption of grants from taxation (a) In general Section 421 of the Coronavirus Economic Relief for Transportation Services Act ( 15 U.S.C. 9111 ) is amended by adding at the end the following new subsection: (g) Tax treatment For purposes of the Internal Revenue Code of 1986— (1) no amount shall be included in the gross income of the eligible provider of transportation services by reason of a grant under this section, (2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and (3) in the case of an eligible provider of transportation services which is a partnership or S corporation— (A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of such Code, and (B) except as provided by the Secretary of the Treasury (or the Secretary's delegate), any increase in the adjusted basis of a partner's interest in a partnership under section 705 of such Code with respect to any amount described in subparagraph (A) shall equal the partner's distributive share of deductions resulting from costs described in subsection (d) which are paid using a grant under this section. . (b) Effective date The amendment made by this section shall apply to taxable years ending after the date of the enactment of the Coronavirus Economic Relief for Transportation Services Act.