[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 387 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 387

    To amend the Internal Revenue Code of 1986 to exclude disaster 
                 mitigation payments from gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2005

Mr. Jindal (for himself, Mr. McCrery, and Mr. Alexander) 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 exclude disaster 
                 mitigation payments from gross income.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disaster Prevention Protection Act 
of 2005''.

SEC. 2. EXCLUSION OF DISASTER MITIGATION PAYMENTS FROM GROSS INCOME.

    (a) In General.--Section 139 of the Internal Revenue Code of 1986 
(relating to disaster relief payments) is amended by adding at the end 
the following new subsection:
    ``(g) Qualified Disaster Mitigation Payments.--
            ``(1) In general.--Gross income shall not include any 
        amount received as a qualified disaster mitigation payment.
            ``(2) Qualified disaster mitigation payment defined.--For 
        purposes of this section, the term `qualified disaster 
        mitigation payment' means any amount which is paid pursuant to 
        the Robert T. Stafford Disaster Relief and Emergency Assistance 
        Act or the National Flood Insurance Act to or for the benefit 
        of the owner of any property for hazard mitigation with respect 
        to such property.
            ``(3) Basis of property not increased by reason of 
        excludable payments.--Notwithstanding any provision of section 
        1016 to the contrary, no adjustment to basis shall be made with 
        respect to property acquired or improved through the use of any 
        qualified disaster mitigation payment to the extent that such 
        adjustment would reflect any amount which is excluded from 
        gross income under paragraph (1).''.
    (b) Conforming Amendments.--
            (1) Subsection (d) of section 139 of such Code is amended 
        by striking ``a qualified disaster relief payment'' and 
        inserting ``qualified disaster relief payments and qualified 
        disaster mitigation payments''.
            (2) Subsection (e) of section 139 of such Code is amended 
        by striking ``and (f)'' and inserting
        ``, (f), and (g)''.
            (3) The heading of section 139 of such Code is amended by 
        striking ``disaster relief'' and inserting ``disaster-
        related''.
            (4) The item in the table of sections for part III of 
        subchapter B of chapter 1 of such Code relating to section 139 
        is amended to read as follows:

``Sec. 139. Disaster-related payments.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received before, on, or after the date of the 
enactment of this Act.
                                 <all>