118 S1944 IS: CERTS Tax Exemption Act U.S. Senate 2023-06-13 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS1st SessionS. 1944IN THE SENATE OF THE UNITED STATESJune 13, 2023Mrs. Blackburn (for herself, Mr. Reed, Ms. Collins, Mr. Casey, Mr. Daines, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo exempt grants received under the Coronavirus Economic Relief for Transportation Services (CERTS) Act from Federal taxation.

1.

Short title

This Act may be cited as the CERTS Tax Exemption Act.

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.