S.Amdt. 2174

SA 2174. 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 which is exempt from
taxation under section 501(a) and is overseen by a State
agency or State department of insurance,
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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