I 111th CONGRESS 2d Session H. R. 4697 IN THE HOUSE OF REPRESENTATIVES February 25, 2010 Mr. Cao (for himself, Mr. Nye, Mr. Cassidy, Mr. Taylor, and Mr. Posey) 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 from gross income remediation payments for hazardous drywall.

1.

Hazardous drywall remediation payment excluded from gross income

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139C the following new section:

139D.

Hazardous drywall remediation payments

Gross income shall not include any payment received from the Federal Government, or any State or local government, for the replacement of, or remediation relating to, hazardous or defective drywall installed in the principal residence (within the meaning of section 121) of the taxpayer after September 1, 2006, and before the date of the enactment of this Act.

. (b)

Clerical amendment

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 139C the following new item: 139D. Hazardous drywall remediation payments. . (c)

Effective date

The amendments made by this section shall apply to payments received after December 21, 2009.