Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1306 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1306
5	5	To amend the Internal Revenue Code of 1986 to exclude from gross income
6	6	any judgments, awards, and settlements with respect to sexual assault
7	7	or sexual harassment claims, and for other purposes.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	FEBRUARY13, 2025
10	10	Ms. L
11	11	OISFRANKELof Florida (for herself and Ms. TENNEY) introduced the
12	12	following bill; which was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to exclude
15	15	from gross income any judgments, awards, and settle-
16	16	ments with respect to sexual assault or sexual harass-
17	17	ment claims, and for other purposes.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Tax Fairness for Sur-4
22	22	vivors Act’’. 5
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25	25	•HR 1306 IH
26	26	SEC. 2. EXEMPTING FROM FEDERAL INCOME TAXATION 1
27	27	PAYMENTS ALLOCABLE TO SEXUAL ASSAULT 2
28	28	OR SEXUAL HARASSMENT CLAIMS. 3
29	29	(a) I
30	30	NGENERAL.—Part III of subchapter B of chap-4
31	31	ter 1 of the Internal Revenue Code of 1986 is amended 5
32	32	by inserting before section 140 the following new section: 6
33	33	‘‘SEC. 139J. AMOUNTS RECEIVED AS JUDGMENTS, AWARDS, 7
34	34	AND SETTLEMENTS WITH RESPECT TO SEX-8
35	35	UAL ASSAULT OR SEXUAL HARASSMENT 9
36	36	CLAIMS. 10
37	37	‘‘(a) I
38	38	NGENERAL.—In the case of an individual, 11
39	39	gross income shall not include any amount received as a 12
40	40	judgment, award, or settlement (including backpay, 13
41	41	frontpay, punitive damages, reimbursement of attorney’s 14
42	42	fees, or any payments made in connection with a release 15
43	43	of claims or to resolve or settle claims) whether by lump 16
44	44	sum or periodic payments from— 17
45	45	‘‘(1) a claim involving the individual as the vic-18
46	46	tim of an alleged nonconsensual sexual act or sexual 19
47	47	contact, as such terms are defined in section 2246 20
48	48	of title 18, United States Code, or similar applicable 21
49	49	Tribal, State, or local law, including when the victim 22
50	50	lacks capacity to consent, or 23
51	51	‘‘(2) a claim involving conduct that is alleged to 24
52	52	constitute sexual harassment of the individual under 25
53	53	applicable Federal, Tribal, State, or local law. 26
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56	56	•HR 1306 IH
57	57	‘‘(b) REGULATIONS.—The Secretary shall prescribe 1
58	58	such regulations and other guidance as are necessary to 2
59	59	carry out the purposes of section, including regulations 3
60	60	and other guidance to distinguish amounts received in con-4
61	61	nection with a claim described in subsection (a) from other 5
62	62	amounts received.’’. 6
63	63	(b) S
64	64	OCIALSECURITYTAXES.—Section 3121(a) of 7
65	65	such Code is amended by striking ‘‘or’’ at the end of para-8
66	66	graph (22), by striking the period at the end of paragraph 9
67	67	(23) and inserting ‘‘; or’’, and by inserting after para-10
68	68	graph (23) the following new paragraph: 11
69	69	‘‘(24) any amount received which is excludable 12
70	70	from the gross income of the employee under section 13
71	71	139J.’’. 14
72	72	(c) R
73	73	AILROADRETIREMENTTAX.—Section 3231(e) 15
74	74	of such Code is amended by adding at the end the fol-16
75	75	lowing new paragraph: 17
76	76	‘‘(13) A
77	77	MOUNTS RECEIVED AS JUDGMENTS , 18
78	78	AWARDS, AND SETTLEMENTS WITH RESPECT TO 19
79	79	SEXUAL ASSAULT OR SEXUAL HARASSMENT 20
80	80	CLAIMS.—The term ‘compensation’ shall not include 21
81	81	any amount received which is excludable from the 22
82	82	gross income of the employee under section 139J.’’. 23
83	83	(d) U
84	84	NEMPLOYMENT TAXES.—Section 3306(b) of 24
85	85	such Code is amended by striking ‘‘or’’ at the end of para-25
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88	88	•HR 1306 IH
89	89	graph (19), by striking the period at the end of paragraph 1
90	90	(20) and inserting ‘‘, or’’, and by inserting after para-2
91	91	graph (20) the following new paragraph: 3
92	92	‘‘(21) any amount received which is excludable 4
93	93	from the gross income of the employee under section 5
94	94	139J.’’. 6
95	95	(e) W
96	96	AGEWITHHOLDING.—Section 3401 of such 7
97	97	Code is amended by striking ‘‘or’’ at the end of paragraph 8
98	98	(22), by striking the period at the end of paragraph (23) 9
99	99	and inserting ‘‘, or’’, and by inserting after paragraph 10
100	100	(23) the following new paragraph: 11
101	101	‘‘(24) any amount received which is excludable 12
102	102	from the gross income of the employee under section 13
103	103	139J.’’. 14
104	104	(f) C
105	105	LERICALAMENDMENT.—The table of sections 15
106	106	for part III of subchapter B of chapter 1 of the Internal 16
107	107	Revenue Code of 1986 is amended by inserting before the 17
108	108	item relating to section 140 the following new item: 18
109	109	‘‘Sec. 139J. Amounts received as judgments, awards, and settlements with re-
110	110	spect to sexual assault or sexual harassment claims.’’.
111	111	(g) EFFECTIVEDATE.—The amendments made by 19
112	112	this section shall apply to taxable years beginning after 20
113	113	the date of the enactment of this Act. 21
114	114	Æ
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