| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 336 |
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| 5 | 5 | | To amend the Internal Revenue Code of 1986 to exclude from gross income |
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| 6 | 6 | | amounts received from State-based catastrophe loss mitigation programs. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | JANUARY30, 2025 |
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| 9 | 9 | | Mr. T |
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| 10 | 10 | | ILLIS(for himself, Mr. PADILLA, Mr. CASSIDY, Mr. SCHIFF, Mr. KEN- |
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| 11 | 11 | | NEDY, Mr. HICKENLOOPER, Mr. BUDD, Ms. KLOBUCHAR, Mr. WICKER, |
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| 12 | 12 | | Mr. B |
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| 13 | 13 | | ENNET, and Mr. MERKLEY) introduced the following bill; which was |
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| 14 | 14 | | read twice and referred to the Committee on Finance |
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| 15 | 15 | | A BILL |
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| 16 | 16 | | To amend the Internal Revenue Code of 1986 to exclude |
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| 17 | 17 | | from gross income amounts received from State-based |
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| 18 | 18 | | catastrophe loss mitigation programs. |
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| 19 | 19 | | Be it enacted by the Senate and House of Representa-1 |
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| 20 | 20 | | tives of the United States of America in Congress assembled, 2 |
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| 21 | 21 | | SECTION 1. SHORT TITLE. 3 |
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| 22 | 22 | | This Act may be cited as the ‘‘Disaster Mitigation 4 |
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| 23 | 23 | | and Tax Parity Act of 2025’’. 5 |
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| 24 | 24 | | VerDate Sep 11 2014 02:53 Feb 26, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S336.IS S336 |
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| 25 | 25 | | ssavage on LAPJG3WLY3PROD with BILLS 2 |
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| 26 | 26 | | •S 336 IS |
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| 27 | 27 | | SEC. 2. EXCLUSION OF AMOUNTS RECEIVED FROM STATE- 1 |
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| 28 | 28 | | BASED CATASTROPHE LOSS MITIGATION 2 |
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| 29 | 29 | | PROGRAMS. 3 |
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| 30 | 30 | | (a) I |
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| 31 | 31 | | NGENERAL.—Section 139 of the Internal Rev-4 |
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| 32 | 32 | | enue Code of 1986 is amended by redesignating subsection 5 |
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| 33 | 33 | | (h) as subsection (i) and by inserting after subsection (g) 6 |
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| 34 | 34 | | the following new subsection: 7 |
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| 35 | 35 | | ‘‘(h) S |
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| 36 | 36 | | TATE-BASEDCATASTROPHELOSSMITIGATION 8 |
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| 37 | 37 | | P |
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| 38 | 38 | | ROGRAMS.— 9 |
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| 39 | 39 | | ‘‘(1) I |
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| 40 | 40 | | N GENERAL.—Gross income shall not in-10 |
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| 41 | 41 | | clude any amount received by or paid for the benefit 11 |
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| 42 | 42 | | of an individual as a qualified catastrophe mitigation 12 |
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| 43 | 43 | | payment under a program established by— 13 |
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| 44 | 44 | | ‘‘(A) a State or any political subdivision or 14 |
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| 45 | 45 | | public instrumentality thereof, 15 |
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| 46 | 46 | | ‘‘(B) a joint powers authority, or 16 |
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| 47 | 47 | | ‘‘(C) an entity created by State law to en-17 |
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| 48 | 48 | | sure the availability of an adequate market of 18 |
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| 49 | 49 | | last resort for essential property insurance or 19 |
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| 50 | 50 | | basic property insurance, over which a State 20 |
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| 51 | 51 | | agency or State department of insurance has 21 |
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| 52 | 52 | | regulatory oversight, 22 |
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| 53 | 53 | | for the purpose of making such payments. 23 |
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| 54 | 54 | | ‘‘(2) Q |
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| 55 | 55 | | UALIFIED CATASTROPHE MITIGATION 24 |
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| 56 | 56 | | PAYMENT.—For purposes of this section, the term 25 |
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| 57 | 57 | | ‘qualified catastrophe mitigation payment’ means 26 |
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| 58 | 58 | | VerDate Sep 11 2014 02:53 Feb 26, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S336.IS S336 |
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| 59 | 59 | | ssavage on LAPJG3WLY3PROD with BILLS 3 |
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| 60 | 60 | | •S 336 IS |
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| 61 | 61 | | any amount (other than the amount of any qualified 1 |
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| 62 | 62 | | disaster mitigation payment) which is received by or 2 |
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| 63 | 63 | | paid for the benefit of the owner of any property to 3 |
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| 64 | 64 | | make improvements to such property for the sole 4 |
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| 65 | 65 | | purpose of reducing the damage that would be done 5 |
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| 66 | 66 | | to such property by a windstorm, earthquake, flood, 6 |
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| 67 | 67 | | or wildfire. 7 |
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| 68 | 68 | | ‘‘(3) N |
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| 69 | 69 | | O INCREASE IN BASIS.—Rules similar to 8 |
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| 70 | 70 | | the rules of subsection (g)(3) shall apply in the case 9 |
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| 71 | 71 | | of this subsection.’’. 10 |
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| 72 | 72 | | (b) C |
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| 73 | 73 | | ONFORMINGAMENDMENTS.— 11 |
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| 74 | 74 | | (1) Section 139(d) of the Internal Revenue 12 |
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| 75 | 75 | | Code of 1986 is amended by striking ‘‘and qualified’’ 13 |
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| 76 | 76 | | and inserting ‘‘, qualified catastrophe mitigation 14 |
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| 77 | 77 | | payments, and qualified’’. 15 |
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| 78 | 78 | | (2) Section 139(i) of such Code (as redesig-16 |
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| 79 | 79 | | nated by subsection (a)) is amended by striking ‘‘or 17 |
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| 80 | 80 | | qualified’’ and inserting ‘‘, qualified catastrophe 18 |
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| 81 | 81 | | mitigation payment, or qualified’’. 19 |
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| 82 | 82 | | (c) E |
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| 83 | 83 | | FFECTIVEDATE.— 20 |
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| 84 | 84 | | (1) I |
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| 85 | 85 | | N GENERAL.—The amendments made by 21 |
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| 86 | 86 | | this section shall apply to taxable years beginning 22 |
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| 87 | 87 | | after December 31, 2021. 23 |
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| 88 | 88 | | (2) R |
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| 89 | 89 | | ETROACTIVE APPLICABILITY .—The Sec-24 |
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| 90 | 90 | | retary of the Treasury, or the Secretary’s delegate, 25 |
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| 91 | 91 | | VerDate Sep 11 2014 02:53 Feb 26, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S336.IS S336 |
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| 92 | 92 | | ssavage on LAPJG3WLY3PROD with BILLS 4 |
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| 93 | 93 | | •S 336 IS |
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| 94 | 94 | | shall provide an opportunity for individuals to claim 1 |
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| 95 | 95 | | the exclusion from gross income under section 2 |
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| 96 | 96 | | 139(h) of the Internal Revenue Code of 1986, as 3 |
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| 97 | 97 | | added by this section, including by amended return. 4 |
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| 98 | 98 | | Æ |
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| 99 | 99 | | VerDate Sep 11 2014 02:53 Feb 26, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S336.IS S336 |
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| 100 | 100 | | ssavage on LAPJG3WLY3PROD with BILLS |
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