,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #ahdi  ,,in ,,the ,,house ,,of  
,,representatives  ,march #e1 #bjbe,mr4 
,la,malfa 7for himself1 ,mr4 ,thompson  
of ,california1 ,mr4 ,murphy1 ,ms4      
,brownley1 ,mr4 ,rouzer1 ,mr4 ,davis of 
,illinois1 ,mr4 ,fitzgerald1 ,ms4       
,pettersen1 ,mr4 ,higgins of ,louisiana1
 ,mr4 ,peters1 ,mr4 ,mullin1 ,ms4 ,chu1 
,ms4 ,sewell1 and ,mr4 ,valadao7        
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    
provide for the exclusion from gross    
income of 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    
#bjbe4  #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 or paid 
for the benefit of an individual as a   
qualified catastrophe mitigation payment
 under a program established by-- 7,a7 a
 ,state or any political subdivision or 
public instrumentality thereof1  7,b7 a 
joint powers authority1 or  7,c7 an     
entity created by ,state law to ensure  
the availability of an adequate market  
of last resort for essential property   
insurance or basic property insurance1  
over which a ,state agency or ,state    
department of insurance has regulatory  
oversight1  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  

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 windstorm1        
earthquake1 or wildfire4  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 of the ,internal ,revenue ,code
 of #aihf is amended by striking and    
qualified and inserting 1 qualified     
catastrophe mitigation payments1 and    
qualified4  7#b7 ,section #aci7;i7 of   
such ,code 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    
,secretary of the ,treasury1 or the     

,secretary's delegate1 shall provide an 
opportunity for individuals to claim the
 exclusion from gross income under      
section #aci7;h7 of the ,internal       
,revenue ,code of #aihf1 as added by    
this section1 including by amended      
return4