Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1134) to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of certain disaster mitigation payments. Mr. Speaker, I ask unanimous consent that…
Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1134) to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of certain disaster mitigation payments.
Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and include extraneous material on the bill under consideration.
Mr. Speaker, I yield myself such time as I may consume.
First, let me thank the gentleman from California (Mr. Thomas), chairman of the Committee on Ways and Means, for his consideration and expeditious handling of this bill in allowing us to bring it to the floor. I will include for the Record the statement of the gentleman from California (Chairman Thomas), but first let me read two paragraphs which crystallize the need for the debate.
The gentleman from California states: ``Mr. Speaker, I strongly support H.R. 1134 which embodies the President's budget proposal to provide tax relief to those who will and who have accepted Federal Emergency Management Agency disaster mitigation grants. The bill is necessary to promote effective use of the mitigation grants. These mitigation grants alleviate the severity of the damage caused by unpredictable but anticipated natural disasters. These grants save taxpayer dollars by reducing future Federal disaster relief payments resulting from such disasters.''
If I can read the last paragraph of the statement of the gentleman from California (Mr. Thomas): ``H.R. 1134 will cut taxes by $105 million over the next decade. FEMA estimates that mitigation projects over the past several years have saved our Nation nearly $3 billion in disaster-related costs. Clearly, when one compares the price of H.R. 1134 with what we might pay in future relief efforts, this bill is worth moving forward and passing into law.''
Mr. Speaker, I rise personally in strong support of H.R. 1134. As a member of Florida who has experienced three hurricanes which made landfall in my district and a fourth which came through the panhandle, out across North Carolina, back into the Atlantic, and made its way back to my district, my congressional district in essence suffered four disasters this past year.
I strongly support H.R. 1134 and ask and thank my colleagues on both sides of the aisle for their help and efforts in bringing this to fruition on the floor. It is a very simple bill. It simply says those taxpayers who receive help under FEMA's hazard mitigation grant program will not be penalized under the Tax Code for receiving that help. It exempts these grants from being considered income for tax purposes.
The FEMA mitigation program has been around for 15 years. It has helped property owners who live in disaster-prone areas avoid future disaster damage through mitigation projects in conjunction with State and local government agencies. In its 15 years, it has helped more than 2,500 properties and saved $2.9 billion in property losses. Never once have these grants been taxed, nor were they ever intended to be.
But the IRS decided last summer that unfortunately nothing specifically in tax law allows the tax exemption, and it let people know these FEMA grants would be considered taxable unless Congress directed otherwise. Therein lies the urgency of our effort. That is why 87 Members of the House have signed onto H.R. 1134; and that is why we are here today, to ensure that those who participate in mitigation projects are not punished for doing so.
Mr. Speaker, these grants help save both property and lives from the wrath of tornadoes, hurricanes, floods, earthquake, and other disasters. They also help save the Federal Government money in the long run through emergency disaster spending. To penalize taxpayers for accepting help in mitigating future and costly property damage is simply penny wise but pound foolish. Fifteen years ago Congress authorized these programs, but unwittingly neglected to spell out that they are, indeed, tax exempt, like many, many other disaster grant programs. We are here today to correct that oversight.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Portman), a member of the Committee on Ways and Means.
Mr. Speaker, I yield 2 minutes to the gentleman from Oklahoma (Mr. Istook) who has been extraordinarily helpful in the promulgation of both this bill and, of course, working with the State of Oklahoma in creating safe rooms and other mitigation grant programs.
Mr. Speaker, I yield 2 minutes to the gentleman from Louisiana (Mr. Jindal), a new Member of Congress who has been a very active participant in helping us bring this legislation to the floor.
Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman from Washington (Mr. Reichert), a new Member and former sheriff of King County.
Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. Fitzpatrick), a member of the Committee on Financial Services, another active participant in our efforts to get the bill on the floor today.
Mr. Speaker, I yield myself such time as I may consume.
Let me again personally thank the gentleman from Maryland (Mr. Cardin) for both his co-sponsorship and his helping us in bringing this bill to the floor today. I want to thank the gentlewoman from New York (Mrs. Maloney) in her considered comments. I want to thank the gentleman from Ohio (Mr. Portman); the gentleman from Louisiana (Mr. Jindal); the gentleman from Washington State (Mr. Reichert); the gentleman from Pennsylvania (Mr. Fitzpatrick) for their comments; and of course the gentleman from Oklahoma (Mr. Istook), who has worked with me side by side on this measure, bringing it to the floor today.
I think we have heard from all of the speakers the reasons for this important legislation; so I thank my colleagues for taking an active participating interest in this legislation. I thank the 87 co-sponsors who joined with us in urging the leadership to bring this measure to the floor. Again, thanks to the gentleman from Texas (Mr. DeLay) for allowing the bill to be scheduled for consideration; and of course the gentleman from California (Mr. Thomas), the chairman of the Committee on Ways and Means, without whose guidance and help this bill would not be possible.
We know it is important. We believe it helps mitigate against future losses. The record is clear how much we save as a government by providing these mitigation grants that never were intended for taxable treatment. This bill makes that record clear. I underscore and underline the gentleman from Oklahoma's (Mr. Istook) comments concerning reactivity. We believe once this bill is passed into law and signed by the President that those prior acts of governments working together to mitigate disasters will not be taxable items. That should be coming from the Treasury to instruct the IRS relative to that procedure.
Mr. Speaker, I want to also thank my staff, Liz Nicolson. I want to thank the Members of the Ways and Means staff: Bob Winters, Chris Giosa, Shahira Knight, Allison Giles; and of course my colleagues on the Senate side, Senators Bond and Landrieu, for their efforts in bringing this bill to the Senate.
Mr. Speaker, I yield back the balance of my time.