Section 1 Short title
This Act may be cited as the “CERTS Tax Exemption Act”.
CERTS Tax Exemption Act
A BILL
To exempt grants received under the Coronavirus Economic Relief for Transportation Services (CERTS) Act from Federal taxation.
Sec. 2 Exemption of grants from taxation
In general— Section 421 of the Coronavirus Economic Relief for Transportation Services Act (15 U.S.C. 9111) is amended by adding at the end the following new subsection:
“(g) Tax treatment—For purposes of the Internal Revenue Code of 1986—
“(1) no amount shall be included in the gross income of the eligible provider of transportation services by reason of a grant under this section,
“(2) no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by paragraph (1), and
“(3) in the case of an eligible provider of transportation services which is a partnership or S corporation—
“(A) any amount excluded from income by reason of paragraph (1) shall be treated as tax exempt income for purposes of sections 705 and 1366 of such Code, and
“(B) except as provided by the Secretary of the Treasury (or the Secretary's delegate), any increase in the adjusted basis of a partner's interest in a partnership under section 705 of such Code with respect to any amount described in subparagraph (A) shall equal the partner's distributive share of deductions resulting from costs described in subsection (d) which are paid using a grant under this section.”
Effective date— The amendment made by this section shall apply to taxable years ending after the date of the enactment of the Coronavirus Economic Relief for Transportation Services Act.