II 109th CONGRESS 2d Session S. 4112 IN THE SENATE OF THE UNITED STATES December 8, 2006 Mrs. Feinstein (for herself, Mrs. Boxer, and Mr. Craig) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To treat payments by charitable organizations with respect to certain firefighters as exempt payments.

1.

Short title

This Act may be cited as the Fallen Firefighters Assistance Tax Clarification Act of 2006.

2.

Payments by charitable organizations with respect to certain firefighters treated as exempt payments and excluded from gross income of the recipients

(a)

In general

For purposes of the Internal Revenue Code of 1986— (1)payments made by an organization described in section 501(c)(3) of such Code by reason of the death, injury, wounding, or illness of any firefighter incurred as the result of the October 2006 Esperanza Incident fire in southern California, and before June 1, 2007, shall be treated as related to the purpose or function constituting the basis for such organization's exemption under section 501 of such Code if such payments are made in good faith using a reasonable and objective formula which is consistently applied; (2)in the case of a private foundation (as defined in section 509 of such Code), any payment described in paragraph (1) shall not be treated as made to a disqualified person for purposes of section 4941 of such Code; and (3)the receipt of any payment described in paragraphs (1) or (2), or any payment from any Federal, State, or local government, or agency or instrumentality thereof, by reason of the death, injury, wounding, or illness of any firefighter incurred as the result of the October 2006 Esperanza Incident fire in southern California, shall not be treated as gross income under such Code. (b)

Effective date

This section shall apply to payments made on or after October 26, 2006.