Internal Revenue Code – Section 139

Sec. 139. Disaster relief payments

-STATUTE-

(a) General rule

Gross income shall not include any amount received by an

individual as a qualified disaster relief payment.

(b) Qualified disaster relief payment defined

For purposes of this section, the term "qualified disaster relief

payment" means any amount paid to or for the benefit of an

individual -

(1) to reimburse or pay reasonable and necessary personal,

family, living, or funeral expenses incurred as a result of a

qualified disaster,

(2) to reimburse or pay reasonable and necessary expenses

incurred for the repair or rehabilitation of a personal residence

or repair or replacement of its contents to the extent that the

need for such repair, rehabilitation, or replacement is

attributable to a qualified disaster,

(3) by a person engaged in the furnishing or sale of

transportation as a common carrier by reason of the death or

personal physical injuries incurred as a result of a qualified

disaster, or

(4) if such amount is paid by a Federal, State, or local

government, or agency or instrumentality thereof, in connection

with a qualified disaster in order to promote the general

welfare,

 

but only to the extent any expense compensated by such payment is

not otherwise compensated for by insurance or otherwise.

(c) Qualified disaster defined

For purposes of this section, the term "qualified disaster" means

-

(1) a disaster which results from a terroristic or military

action (as defined in section 692(c)(2)),

(2) federally (!1) declared disaster (as defined by section

165(h)(3)(C)(i)),

 

(3) a disaster which results from an accident involving a

common carrier, or from any other event, which is determined by

the Secretary to be of a catastrophic nature, or

(4) with respect to amounts described in subsection (b)(4), a

disaster which is determined by an applicable Federal, State, or

local authority (as determined by the Secretary) to warrant

assistance from the Federal, State, or local government or agency

or instrumentality thereof.

(d) Coordination with employment taxes

For purposes of chapter 2 and subtitle C, qualified disaster

relief payments and qualified disaster mitigation payments shall

not be treated as net earnings from self-employment, wages, or

compensation subject to tax.

(e) No relief for certain individuals

Subsections (a), (f), and (g) shall not apply with respect to any

individual identified by the Attorney General to have been a

participant or conspirator in a terroristic action (as so defined),

or a representative of such individual.

(f) Exclusion of certain additional payments

Gross income shall not include any amount received as payment

under section 406 of the Air Transportation Safety and System

Stabilization Act.

(g) Qualified disaster mitigation payments

(1) In general

Gross income shall not include any amount received as a

qualified disaster mitigation payment.

(2) Qualified disaster mitigation payment defined

For purposes of this section, the term "qualified disaster

mitigation payment" means any amount which is paid pursuant to

the Robert T. Stafford Disaster Relief and Emergency Assistance

Act (as in effect on the date of the enactment of this

subsection) or the National Flood Insurance Act (as in effect on

such date) to or for the benefit of the owner of any property for

hazard mitigation with respect to such property. Such term shall

not include any amount received for the sale or disposition of

any property.

(3) No increase in basis

Notwithstanding any other provision of this subtitle, no

increase in the basis or adjusted basis of any property shall

result from any amount excluded under this subsection with

respect to such property.

(h) Denial of double benefit

Notwithstanding any other provision of this subtitle, no

deduction or credit shall be allowed (to the person for whose

benefit a qualified disaster relief payment or qualified disaster

mitigation payment is made) for, or by reason of, any expenditure

to the extent of the amount excluded under this section with

respect to such expenditure.

 

-SOURCE-

(Added Pub. L. 107-134, title I, Sec. 111(a), Jan. 23, 2002, 115

Stat. 2432; amended Pub. L. 109-7, Sec. 1(a), Apr. 15, 2005, 119

Stat. 21; Pub. L. 110-343, div. C, title VII, Sec.

706(a)(2)(D)(iv), Oct. 3, 2008, 122 Stat. 3922.)

 

-REFTEXT-

REFERENCES IN TEXT

Section 406 of the Air Transportation Safety and System

Stabilization Act, referred to in subsec. (f), is section 406 of

Pub. L. 107-42, which is set out as a note under section 40101 of

Title 49, Transportation.

The Robert T. Stafford Disaster Relief and Emergency Assistance

Act, referred to in subsec. (g)(2), is Pub. L. 93-288, May 22,

1974, 88 Stat. 143, as amended, which is classified principally to

chapter 68 (Sec. 5121 et seq.) of Title 42, The Public Health and

Welfare. For complete classification of this Act to the Code, see

Short Title note set out under section 5121 of Title 42 and Tables.

The date of the enactment of this subsection, referred to in

subsec. (g)(2), is the date of enactment of Pub. L. 109-7, which

was approved Apr. 15, 2005.

The National Flood Insurance Act, referred to in subsec. (g)(2),

probably means the National Flood Insurance Act of 1968, title XIII

of Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 572, as amended, which is

classified principally to chapter 50 (Sec. 4001 et seq.) of Title

42, The Public Health and Welfare. For complete classification of

this Act to the Code, see Short Title note set out under section

4001 of Title 42 and Tables.

 

 

-MISC1-

PRIOR PROVISIONS

A prior section 139 was renumbered section 140 of this title.

 

AMENDMENTS

2008 - Subsec. (c)(2). Pub. L. 110-343 amended par. (2)

generally. Prior to amendment, par. (2) read as follows: "a

Presidentially declared disaster (as defined in section

1033(h)(3)),".

2005 - Subsec. (d). Pub. L. 109-7, Sec. 1(a)(2)(A), substituted

"qualified disaster relief payments and qualified disaster

mitigation payments" for "a qualified disaster relief payment".

Subsec. (e). Pub. L. 109-7, Sec. 1(a)(2)(B), substituted ", (f),

and (g)" for "and (f)".

Subsecs. (g), (h). Pub. L. 109-7, Sec. 1(a)(1), added subsecs.

(g) and (h).

 

EFFECTIVE DATE OF 2008 AMENDMENT

Amendment by Pub. L. 110-343 applicable to disasters declared in

taxable years beginning after Dec. 31, 2007, see section 706(d)(1)

of Pub. L. 110-343, set out as a note under section 56 of this

title.

 

EFFECTIVE DATE OF 2005 AMENDMENT

Pub. L. 109-7, Sec. 1(c)(1), Apr. 15, 2005, 119 Stat. 22,

provided that: "The amendments made by subsection (a) [amending

this section] shall apply to amounts received before, on, or after

the date of the enactment of this Act [Apr. 15, 2005]."

 

EFFECTIVE DATE

Pub. L. 107-134, title I, Sec. 111(c), Jan. 23, 2002, 115 Stat.

2433, provided that: "The amendments made by this section [enacting

this section and renumbering former section 139 as section 140 of

this title] shall apply to taxable years ending on or after

September 11, 2001."

 

-FOOTNOTE-

(!1) So in original. Probably should be preceded by "a".

 

 

-End-