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
To amend the Internal Revenue Code of 1986 to exclude from gross income earthquake loss mitigation received under State-based earthquake loss mitigation programs.
This Act may be cited as the
Earthquake Mitigation and Tax Parity Act.
Exclusion of earthquake loss mitigation received under State-based earthquake loss mitigation programs
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:
State-based earthquake loss mitigation programs
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.
Earthquake loss mitigation
For purposes of this section—
The term earthquake loss mitigation means any property or service that reduces seismic risks to a residential structure or its contents.
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).
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)).
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—
an organization described in section 501(c) and exempt from tax under section 501(a),
an organization determined to be exempt from State taxes pursuant to the laws of the relevant State, or
a public instrumentality of a State pursuant to a joint exercise of powers.
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.
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.
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.
The amendments made by this section shall apply to taxable years beginning after December 31, 2018.