,,ii  #aagth ,,congress  #b;d ,session  
,s4 #eagf  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #a1  
#bjbb,mr4 ,cassidy 7for himself and     
,mrs4 ,feinstein7 introduced the        
following bill2 which was read twice and
 referred to the ,committee on ,finance 
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to exclude from 
gross income amounts received from      
,state-based catastrophe loss mitigation
 programs4  #a4 ,short title ,this ,act 
may be cited as the ,disaster           
,mitigation and ,tax ,parity ,act of    
#bjbb4  #b4 ,exclusion of amounts       
received from state-based catastrophe   
loss mitigation programs  7a7 ,in       
general ,section #aci of the ,internal  
,revenue ,code of #aihf is amended by   
redesignating subsection 7h7 as         
subsection 7i7 and by inserting after   
subsection 7g7 the following new        
subsection3  7h7 ,state-,based          
catastrophe loss mitigation programs    
7#a7 ,in general ,gross income shall not

 include any amount received by an      
individual as a qualified catastrophe   
mitigation payment under a program      
established by-- 7,a7 a ,state1  7,b7 a 
political subdivision or instrumentality
 thereof1 or  7,c7 an entity established
 under ,state charter1  for the purpose 
of making such payments4  7#b7          
,qualified catastrophe mitigation       
payment ,for purposes of this section1  
the term qualified catastrophe          
mitigation payment means any amount     
which is received by an individual to   
make improvements to such individual's  
residence for the sole purpose of       
reducing the damage that would be done  
to such residence by a windstorm1       
earthquake1 wildfire1 or flooding4  7#c7
 ,no increase in basis ,rules similar to
 the rules of subsection 7g77#c7 shall  
apply in the case of this subsection4  4
  7b7 ,conforming amendments  7#a7      
,section #aci7;d7 is amended by striking
 and qualified and inserting 1 qualified
 catastrophe mitigation payments1 and   

qualified4  7#b7 ,section #aci7;i7 7as  
redesignated by subsection 7a77 is      
amended by striking or qualified and    
inserting 1 qualified catastrophe       
mitigation payment1 or qualified4  7c7  
,effective date  7#a7 ,in general ,the  
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjbj4  7#b7 ,retroactive
 applicability ,the exclusion under     
section #aci7;h7 of the ,internal       
,revenue ,code of #aihf1 as added by    
this section1 may be claimed for taxable
 years beginning after ,december #ca1   
#bjbj1 including by amended return4