PRINTER'S NO. 556
No. 84 Session of 2005
INTRODUCED BY WRIGHT, STEIL, DiGIROLAMO, O'NEILL, PETRI AND
WATSON, FEBRUARY 15, 2005
INTRODUCED AS NONCONTROVERSIAL RESOLUTION UNDER RULE 35,
FEBRUARY 15, 2005
A RESOLUTION
1 Memorializing the Congress of the United States to direct the
2 Internal Revenue Service to rescind its decision to include
3 grants received as payment for damage done by a natural
4 disaster to residential homes in the definition of gross
5 income for Federal income tax purposes.
6 WHEREAS, The Internal Revenue Service has recently issued a
7 ruling that grant moneys received by homeowners who incurred
8 damage due to a natural disaster shall include those payments as
9 gross income under section 61 of the Internal Revenue Code and
10 therefore subject the payments to Federal income taxation; and
11 WHEREAS, Many homeowners in the Commonwealth of Pennsylvania
12 incurred flood damage due to the 2004 hurricane season; and
13 WHEREAS, At least 19 homeowners along the Neshaminy Creek
14 have received grants to elevate their homes in accordance with
15 the Federal Emergency Management Agency Hazard Mitigation Grant
16 Program; and
17 WHEREAS, The Federal income tax burden on these homeowners,
18 who are required to include the emergency grant payments in
19 their income, could total several thousand dollars; and
1 WHEREAS, The Internal Revenue Service may try to make its
2 ruling apply retroactively, further impacting homeowners who
3 have received emergency grant payments in the past; therefore be
4 it
5 RESOLVED, That the House of Representatives of the
6 Commonwealth of Pennsylvania urge the Congress to direct the
7 Internal Revenue Service to rescind its ruling that certain
8 emergency grant payments be subject to Federal income tax; and
9 be it further
10 RESOLVED, That copies of this resolution be transmitted to
11 the presiding officers of each house of Congress and to each
12 member of Congress from Pennsylvania.
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