H.R.1134 Internal Revenue Code of 1986

On Friday, April 15, 2005, the President signed into law:

H.R.1134, which amends the Internal Revenue Code of 1986 to provide for the proper tax treatment of certain disaster mitigation payments.

# # # For Immediate Release Office of the Press Secretary April 15, 2005 Statement by the Press Secretary

H.R.1134 Bill Summary & Status for the 109th Congress

Amends the Internal Revenue Code to exclude from gross income disaster mitigation payments paid to property owners pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act (as in effect on the date of enactment of this Act). Exempts property for which excludable payments are received from an increase in cost basis.

Treats any sale or transfer of property to the Federal Government, a State or local government, or an Indian tribal government to implement hazard mitigation under the Robert T. Stafford Disaster Relief and Emergency Assistance Act or the National Flood Insurance Act as an involuntary conversion for purposes of determining the taxable gain from such sale or transfer.