I 112th CONGRESS 1st Session H. R. 1033 IN THE HOUSE OF REPRESENTATIVES March 11, 2011 Mr. Broun of Georgia 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 allow a credit for unreimbursed funeral expenses with respect to a deceased indigent individual.

1.

Short title

This Act may be cited as the Indigent Funeral Expense Reimbursement Act of 2011.

2.

Indigent funeral expenses credit

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end following new section:

45S.

Indigent funeral expenses

(a)

In general

For purposes of section 38, the indigent funeral expenses credit for any taxable year is an amount equal to the qualified indigent funeral expenses of the taxpayer for the taxable year. (b)

Limitation

The aggregate amount of qualified indigent funeral expenses which may be taken into account under subsection (a) for a taxable year with respect to a deceased indigent individual shall not exceed $3,000. (c)

Qualified indigent funeral expenses

For purposes of this section— (1)

In general

The term qualified indigent funeral expenses means, with respect to any person in the trade or business of providing funeral or burial goods and services, any unreimbursed amount paid or incurred by such trade or business to provide funeral or burial goods and services for a deceased indigent individual. (2)

Indigent individual

The term deceased indigent individual means any deceased individual with respect to whom the cost of any such funeral or burial goods and services is reimbursable to the taxpayer by a State by reason of the indigent status (as determined under State law) of such individual. (d)

Special rules relating to reimbursement

For purposes of this section— (1)if, by reason of the indigent status of an individual, a credit (other than the credit allowed under subsection (a)) or deduction is allowable with respect to the cost of the funeral or burial goods and services of such individual for purposes of determining the taxpayer’s State income tax liability, such cost shall be treated as reimbursable, and (2)to the extent any such credit or deduction reduces the taxpayer’s State income tax liability, such amount shall be treated as reimbursed. (e)

Aggregation rules

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one person for purposes of this section.

. (b)

Credit made part of general business credit

Subsection (b) of section 38 of such Code is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , plus, and by adding at the end the following new paragraph: (37)the indigent funeral expenses credit determined under section 45S(a). . (c)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Indigent funeral expenses. . (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.