Heartland Emergency Assistance Relief from Tax Act of 2024

“139J. Compensation for losses or damages resulting from certain severe storms, straight-line winds, and tornadoes

“(a) In general—Gross income shall not include any amount received by an individual as a qualified severe storms, straight-line winds, and tornadoes relief payment.

“(b) Qualified severe storms, straight-Line winds, and tornadoes relief payment—For purposes of this section—

“(1) In general—The term “qualified severe storms, straight-line winds, and tornadoes relief payment” means any amount received by or on behalf of an individual as compensation for losses, expenses, or damages (including compensation for additional living expenses, lost wages (other than compensation for lost wages paid by the employer which would have otherwise paid such wages), personal injury, death, or emotional distress) incurred as a result of a qualified severe storms, straight-line winds, or tornadoes disaster, but only to the extent the losses, expenses, or damages compensated by such payment are not compensated for by insurance or otherwise.

“(2) Qualified severe storms, straight line winds, or tornadoes disaster—The term “qualified severe storms, straight lines, or tornado disaster” means any federally declared disaster (as defined in section 165(i)(5)(A) of the Internal Revenue Code of 1986) declared, after December 31, 2023, as a result severe storms, straight-line winds, or tornadoes.

“(c) Denial of double benefit—Notwithstanding any other provision of this chapter—

“(1) no deduction or credit shall be allowed (to the person for whose benefit a qualified severe storms, straight-line winds, and tornadoes relief 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, and

“(2) 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.”