[Congressional Record Volume 167, Number 138 (Tuesday, August 3, 2021)]
[Senate]
[Page S5774]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2431. Mrs. FEINSTEIN (for herself, Mr. Burr, and Mr. Padilla) 
submitted an amendment intended to be proposed to amendment SA 2137 
proposed by Mr. Schumer (for Ms. Sinema (for herself, Mr. Portman, Mr. 
Manchin, Mr. Cassidy, Mrs. Shaheen, Ms. Collins, Mr. Tester, Ms. 
Murkowski, Mr. Warner, and Mr. Romney)) to the bill H.R. 3684, to 
authorize funds for Federal-aid highways, highway safety programs, and 
transit programs, and for other purposes; which was ordered to lie on 
the table; as follows:

        On page 2427, between lines 10 and 11, insert the 
     following:

     SEC. 80505. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED 
                   CATASTROPHE LOSS MITIGATION PROGRAMS.

       (a) In General.--Section 139 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (h) as 
     subsection (i) and by inserting after subsection (g) the 
     following new subsection:
       ``(h) State-Based Catastrophe Loss Mitigation Programs.--
       ``(1) In general.--Gross income shall not include any 
     amount received by an individual as a qualified catastrophe 
     mitigation payment under a program established by--
       ``(A) a State,
       ``(B) a political subdivision or instrumentality thereof,
       ``(C) a joint powers authority, or
       ``(D) an entity created by State law to ensure the 
     availability of an adequate market of last resort for 
     essential property insurance, over which a State agency or 
     State department of insurance has regulatory oversight,
     for the purpose of making such payments.
       ``(2) Qualified catastrophe mitigation payment.--For 
     purposes of this section, the term `qualified catastrophe 
     mitigation payment' means any amount which is received by the 
     owner of any property to make improvements to such property 
     for the sole purpose of reducing the damage that would be 
     done to such property by a windstorm, earthquake, or 
     wildfire.
       ``(3) No increase in basis.--Rules similar to the rules of 
     subsection (g)(3) shall apply in the case of this 
     subsection.''.
       (b) Conforming Amendments.--
       (1) Section 139(d) is amended by striking ``and qualified'' 
     and inserting ``, qualified catastrophe mitigation payments, 
     and qualified''.
       (2) Section 139(i) (as redesignated by subsection (a)) is 
     amended by striking ``or qualified'' and inserting ``, 
     qualified catastrophe mitigation payment, or qualified''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2021.
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