[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3510 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 3510

  To exempt grants received under the Coronavirus Economic Relief for 
       Transportation Services (CERTS) Act from Federal taxation.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2023

 Mr. LaHood (for himself, Mr. Panetta, Mr. Rose, Mr. Golden of Maine, 
Mr. Kelly of Pennsylvania, and Mr. Blumenauer) introduced the following 
      bill; which was referred to the Committee on Ways and Means

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                                 A BILL


 
  To exempt grants received under the Coronavirus Economic Relief for 
       Transportation Services (CERTS) Act from Federal taxation.

    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 ``CERTS Tax Exemption Act''.

SEC. 2. EXEMPTION OF GRANTS FROM TAXATION.

    (a) In General.--Section 421 of the Coronavirus Economic Relief for 
Transportation Services Act (15 U.S.C. 9111) is amended by adding at 
the end the following new subsection:
    ``(g) Tax Treatment.--For purposes of the Internal Revenue Code of 
1986--
            ``(1) no amount shall be included in the gross income of 
        the eligible provider of transportation services by reason of a 
        grant under this section,
            ``(2) no deduction shall be denied, no tax attribute shall 
        be reduced, and no basis increase shall be denied, by reason of 
        the exclusion from gross income provided by paragraph (1), and
            ``(3) in the case of an eligible provider of transportation 
        services which is a partnership or S corporation--
                    ``(A) any amount excluded from income by reason of 
                paragraph (1) shall be treated as tax exempt income for 
                purposes of sections 705 and 1366 of such Code, and
                    ``(B) except as provided by the Secretary of the 
                Treasury (or the Secretary's delegate), any increase in 
                the adjusted basis of a partner's interest in a 
                partnership under section 705 of such Code with respect 
                to any amount described in subparagraph (A) shall equal 
                the partner's distributive share of deductions 
                resulting from costs described in subsection (d) which 
                are paid using a grant under this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of the 
Coronavirus Economic Relief for Transportation Services Act.
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