119-s336

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 336 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 336

To amend the Internal Revenue Code of 1986 to exclude from gross income 
amounts received from State-based catastrophe loss mitigation programs.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 January 30, 2025

 Mr. Tillis (for himself, Mr. Padilla, Mr. Cassidy, Mr. Schiff, Mr. 
 Kennedy, Mr. Hickenlooper, Mr. Budd, Ms. Klobuchar, Mr. Wicker, Mr. 
Bennet, and Mr. Merkley) 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 exclude from gross income 
amounts received from State-based catastrophe loss mitigation programs.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Disaster Mitigation and Tax Parity 
Act of 2025''.

SEC. 2. 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 or paid for the benefit of an individual as 
 a qualified catastrophe mitigation payment under a program 
 established by--
 ``
        (A) a State or any political subdivision or 
 public instrumentality thereof,
 ``
        (B) a joint powers authority, or
 ``
            (C) an entity created by State law to ensure the 
 availability of an adequate market of last resort for 
 essential property insurance or basic property 
 insurance, over which a State agency or State 
 department of insurance has regulatory oversight,
 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 (other than the amount of 
 any qualified disaster mitigation payment) which is received by 
 or paid for the benefit of 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, flood, 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) of the Internal Revenue Code of 1986 is 
 amended by striking ``and qualified'' and inserting ``, 
 qualified catastrophe mitigation payments, and qualified''.

    (2) Section 139
            (i) of such Code (as redesignated by 
 subsection

    (a) ) is amended by striking ``or qualified'' and 
 inserting ``, qualified catastrophe mitigation payment, or 
 qualified''.
            (c) Effective Date.--

    (1) In general.--The amendments made by this section shall 
 apply to taxable years beginning after December 31, 2021.

    (2) Retroactive applicability.--The Secretary of the 
 Treasury, or the Secretary's delegate, shall provide an 
 opportunity for individuals to claim the exclusion from gross 
 income under 

section 139

    (h) of the Internal Revenue Code of 
 1986, as added by this section, including by amended return.
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