,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bjec  ,,in ,,the ,,house ,,of  
,,representatives  ,april #c1 #bjai,mr4 
,thompson of ,california 7for himself   
and ,mr4 ,calvert7 introduced the       
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to exclude from gross   
income amounts received from            
,state-based earthquake loss mitigation 
programs4  #a4 ,short title ,this ,act  
may be cited as the ,earthquake         
,mitigation ,incentive and ,tax ,parity 
,act of #bjai4  #b4 ,exclusion of       
amounts received from ,state-based      
earthquake loss mitigation programs  7a7
 ,in general ,part ,,iii of subchapter  
,b of chapter #a of the ,internal       
,revenue ,code of #aihf is amended by   
inserting after section #aci;,g the     
following new section3  #aci;,h4        
,state-based earthquake loss mitigation 
programs  7a7 ,in general ,gross income 
shall not include any amount received as

 a qualified earthquake mitigation      
payment4  7b7 ,qualified earthquake     
mitigation payment ,for purposes of this
 section--  7#a7 ,qualified earthquake  
mitigation payment ,the term qualified  
earthquake mitigation payment means any 
amount which is received as a loan1 loan
 forgiveness1 grant1 credit1 rebate1    
voucher1 or other financial incentive   
pursuant to an earthquake loss          
mitigation program established by a     
,state1 or agency1 instrumentality1 or  
political subdivision thereof1 by a     
residential property owner or occupant  
to assist with expenses paid1 or        
obligations incurred1 for earthquake    
loss mitigation4  7#b7 ,earthquake loss 
mitigation program ,the term earthquake 
loss mitigation program includes a      
program established by a ,state1 or     
agency1 instrumentality1 or political   
subdivision thereof1 by itself or       
together with--  7,a7 an organization   
described in section #eja7;c7 and exempt
 from tax under section #eja7;a71  7,b7 

an organization determined to be exempt 
from ,state taxes pursuant to the laws  
of the relevant ,state1 or  7,c7 a      
public instrumentality of a ,state      
pursuant to a joint exercise of powers4 
7#c7 ,earthquake loss mitigation ,the   
term earthquake loss mitigation means an
 activity that reduces seismic risks to 
a residential structure or its contents4
  7#d7 ,seismic ,the term seismic has   
the meaning given such term by section  
#d7c7 of the ,earthquake ,hazards       
,reduction ,act of #aigg 7#db ,u4,s4,c4 
#ggjc7c774  7#e7 ,no increase in basis  
,notwithstanding any other provision of 
this subtitle1 no increase in the basis 
or adjusted basis of any property shall 
result from any amount excluded under   
this subsection with respect to such    
property4  7c7 ,denial of double benefit
 ,notwithstanding any other provision of
 this subtitle1 no deduction or credit  
shall be allowed for1 or by reason of1  
any expenditure to the extent of the    
amount excluded under subsection 7a7 for

 any qualified earthquake mitigation    
payment which was provided with respect 
to such expenditure4  4  7b7 ,clerical  
amendment ,the table of sections for    
part ,,iii of subchapter ,b of chapter  
#a of such ,code is amended by inserting
 after the item relating to section     
#aci;,g the following new item3  ,sec4  
#aci;,h4 ,state-based earthquake loss   
mitigation programs4  4  7c7 ,effective 
date ,the amendments made by this       
section shall apply to taxable years    
beginning after ,december #ca1 #bjah4