II
109th CONGRESS
1st Session
S. 583
IN THE SENATE OF THE UNITED STATES
March 9, 2005
Ms. Landrieu introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of certain disaster mitigation payments.
Proper tax treatment of certain disaster mitigation payments
Qualified disaster mitigation payments excluded from gross income
In general
Section 139 of the Internal Revenue Code of 1986 (relating to disaster relief payments) is amended by adding at the end the following new subsections:
Qualified disaster mitigation payments
In general
Gross income shall not include any amount received as a qualified disaster mitigation payment.
Qualified disaster mitigation payment defined
For purposes of this
section, the term qualified disaster mitigation payment
means
any amount which is paid pursuant to the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (as in effect on the date of the enactment of this
subsection) or the National Flood Insurance Act (as in effect on such date) to
or for the benefit of the owner of any property for hazard mitigation with
respect to such property. Such term shall not include any amount received for
the sale or disposition of any property.
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.
Denial of double benefit
Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed (to the person for whose benefit a qualified disaster relief payment or qualified disaster mitigation payment is made) for, or by reason of, any expenditure to the extent of the amount excluded under this section with respect to such expenditure.
.
Conforming amendments
Subsection (d) of section 139
of such Code is amended by striking a qualified disaster relief
payment
and inserting qualified disaster relief payments and
qualified disaster mitigation payments
.
Subsection (e) of section 139
of such Code is amended by striking and (f)
and inserting
, (f), and (g)
.
Certain dispositions of property under hazard mitigation programs treated as involuntary conversions
Section 1033 of such Code (relating to involuntary conversions) is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection:
Sales or exchanges under certain hazard mitigation programs
For purposes of this subtitle, if property is sold or otherwise transferred to the Federal Government, a State or local government, or an Indian tribal government to implement hazard mitigation under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (as in effect on the date of the enactment of this subsection) or the National Flood Insurance Act (as in effect on such date), such sale or transfer shall be treated as an involuntary conversion to which this section applies.
.
Effective date
Qualified disaster mitigation payments
The amendments made by subsection (a) shall apply to amounts received in taxable years ending after December 31, 2003.
Dispositions of property under hazard mitigation programs
The amendments made by subsection (b) shall apply to sales or other dispositions in taxable years ending after December 31, 2003.