[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3605 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3605

  To amend the Internal Revenue Code of 1986 to clarify the exemption 
  from tax for State funds providing coverage for losses on property 
                       arising from earthquakes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 10, 1996

   Mr. Lewis of California 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 clarify the exemption 
  from tax for State funds providing coverage for losses on property 
                       arising from earthquakes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF EXEMPTION FROM TAX FOR STATE FUNDS 
              PROVIDING COVERAGE FOR LOSSES ON PROPERTY ARISING FROM 
              EARTHQUAKES.

    (a) In General.--Subsection (c) of section 501 of the Internal 
Revenue Code of 1986 (relating to exemption from tax on corporations, 
certain trusts, etc.) is amended by adding at the end the following new 
paragraph:
            ``(26) Any organization or fund--
                    ``(A) which is established by a State solely to 
                provide coverage on a not-for-profit basis for losses 
                arising from earthquakes on property located within 
                such State, and
                    ``(B) no part of the net earnings of which inures 
                to the benefit of any private shareholder or 
                individual.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years ending after the date of the enactment of this 
Act.
                                 <all>