[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 557 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 557

 To clarify the tax treatment of payments made under the Cerro Grande 
                          Fire Assistance Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 2001

 Mr. Domenici (for himself and Mr. Bingaman) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To clarify the tax treatment of payments made under the Cerro Grande 
                          Fire Assistance Act.

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

SECTION 1. EXCLUSION FROM GROSS INCOME FOR PAYMENTS UNDER CERRO GRANDE 
              FIRE ASSISTANCE ACT.

    (a) In General.--Section 104(d) of the Cerro Grande Fire Assistance 
Act (Public Law 106-246; 114 Stat. 585) is amended by adding at the end 
the following new paragraph:
            ``(5) Payments excluded from gross income.--
                    ``(A) In general.--For purposes of the Internal 
                Revenue Code of 1986, gross income shall not include 
                any amount of any payment under this title not 
                otherwise excludable from gross income under such Code.
                    ``(B) Denial of double benefit.--Subparagraph (A) 
                shall not apply to any amount if under such Code--
                            ``(i) a deduction or credit is allowed with 
                        respect to such amount, or
                            ``(ii) an increase in the adjusted basis of 
                        any property results from such amount.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of the Cerro Grande Fire 
Assistance Act.
                                 <all>