S. 336

119 S336 IS: Disaster Mitigation and Tax Parity Act of 2025
 U.S. Senate
 2025-01-30
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 II  119th CONGRESS  1st Session  S. 336  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.
1.
Short title
This Act may be cited as the   Disaster Mitigation and Tax Parity Act of 2025  .
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.