Disaster Mitigation and Tax Parity Act of 2022

Bill: 117-s-5176
Sponsor: full_name: Sen. Cassidy, Bill [R-LA]
Introduced: 2022-12-01
Policy area: Taxation
Latest action: action_date: 2022-12-01
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2022-12-01
action_desc: Introduced in Senate
text: <p><b>Disaster Mitigation and Tax Parity Act of 2022</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, wildfire, or flooding.</p> <p>This tax exclusion is retroactive to taxable years beginning after 2020, including by amended return.</p>

tv_txt: II 117th CONGRESS 2d Session S. 5176 IN THE SENATE OF THE UNITED STATES December 1, 2022 Mr. Cassidy (for himself 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 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 2022 . 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, wildfire, or flooding. (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 (1) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2020. (2) Retroactive applicability The exclusion under section 139(h) of the Internal Revenue Code of 1986, as added by this section, may be claimed for taxable years beginning after December 31, 2020, including by amended return.