[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5610 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5610

To amend the Internal Revenue Code of 1986 to exclude from gross income 
 amounts received from State-based earthquake loss mitigation programs.


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                    IN THE HOUSE OF REPRESENTATIVES

                             June 28, 2016

 Mr. Thompson of California (for himself and Mr. Cook) 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 
 amounts received from State-based earthquake loss mitigation programs.

    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 ``Earthquake Mitigation Tax Incentive 
Act of 2016''.

SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED EARTHQUAKE LOSS 
              MITIGATION PROGRAMS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139F the following new section:

``SEC. 139G. STATE-BASED EARTHQUAKE LOSS MITIGATION PROGRAMS.

    ``(a) In General.--Gross income shall not include any amount 
received as a qualified earthquake mitigation payment.
    ``(b) Qualified Earthquake Mitigation Payment.--For purposes of 
this section--
            ``(1) Qualified earthquake mitigation payment.--The term 
        `qualified earthquake mitigation payment' means any amount 
        which is received as a loan, loan forgiveness, grant, credit, 
        rebate, voucher, or other financial incentive pursuant to an 
        earthquake loss mitigation program established by a State, or 
        agency, instrumentality, or political subdivision thereof, by a 
        residential property owner or occupant to assist with expenses 
        paid, or obligations incurred, for earthquake loss mitigation.
            ``(2) Earthquake loss mitigation program.--The term 
        `earthquake loss mitigation program' includes a program 
        established by a State, or agency, instrumentality, or 
        political subdivision thereof, by itself or together with--
                    ``(A) an organization described in section 501(c) 
                and exempt from tax under section 501(a),
                    ``(B) an organization determined to be exempt from 
                State taxes pursuant to the laws of the relevant State, 
                or
                    ``(C) a public instrumentality of a State pursuant 
                to a joint exercise of powers.
            ``(3) Earthquake loss mitigation.--The term `earthquake 
        loss mitigation' means an activity that reduces seismic risks 
        to a residential structure or its contents.
            ``(4) Seismic.--The term `seismic' has the meaning given 
        such term by section 4(3) of the Earthquake Hazards Reduction 
        Act of 1977 (42 U.S.C. 7703(3)).
            ``(5) No increase in basis.--Notwithstanding any other 
        provision of this subtitle, no increase in the basis or 
        adjusted basis of any property shall result from any amount 
        excluded under this subsection with respect to such property.
    ``(c) Denial of Double Benefit.--Notwithstanding any other 
provision of this subtitle, no deduction or credit shall be allowed 
for, or by reason of, any expenditure to the extent of the amount 
excluded under subsection (a) for any qualified earthquake mitigation 
payment which was provided with respect to such expenditure.''.
    (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 139F the following new item:

``Sec. 139G. State-based earthquake loss mitigation programs.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.
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