To amend the Internal Revenue Code of 1986 to exclude from income and employment taxes real property tax abatements for seniors and disabled individuals in exchange for services.

Amends the Internal Revenue Code to allow individuals who have attained age 60 or are disabled an exemption from income and employment taxes for real property tax abatements received under a state or local program in which such individuals have provided services in exchange for such abatements.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6316 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6316

 To amend the Internal Revenue Code of 1986 to exclude from income and 
employment taxes real property tax abatements for seniors and disabled 
                 individuals in exchange for services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2012

  Mr. Frank of Massachusetts introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to exclude from income and 
employment taxes real property tax abatements for seniors and disabled 
                 individuals in exchange for services.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUSION FROM INCOME AND EMPLOYMENT TAXES FOR REAL PROPERTY 
              TAX ABATEMENTS IN EXCHANGE FOR SERVICES.

    (a) Income Taxes.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 (relating to items 
        specifically excluded from gross income) is amended by 
        inserting before section 140 the following new section:

``SEC. 139F. REAL PROPERTY TAX ABATEMENTS IN EXCHANGE FOR SERVICES.

    ``(a) In General.--In the case of a qualified individual, gross 
income shall not include any real property tax abatement received under 
a State program, or a local program under specific authority of State 
law, in which the taxpayer receives such abatement in exchange for 
services.
    ``(b) Qualified Individual.--For purposes of subsection (a), the 
term `qualified individual' means any individual who--
            ``(1) has attained age 60, or
            ``(2) is disabled (within the meaning of section 
        72(m)(7)).''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        inserting after the item relating to section 139B the following 
        new item:

``Sec. 139F. Real property tax abatements in exchange for services.''.
    (b) Employment Taxes.--
            (1) In general.--Paragraph (7) of section 3121(b) of such 
        Code is amended by striking ``or'' at the end of subparagraph 
        (E), by inserting ``or'' at the end of subparagraph (F), and by 
        inserting after subparagraph (F) the following:
                    ``(G) service under a State program in which the 
                taxpayer in exchange for services receives an abatement 
                of real property taxes which is excluded from income 
                under section 139F;''.
            (2) Conforming amendments to social security act.--Section 
        210(a)(7) of the Social Security Act (42 U.S.C. 410(a)(7)) is 
        amended by striking ``or'' at the end of subparagraph (E), by 
        striking the period at the end of subparagraph (F) and 
        inserting ``,  or'', and by inserting after subparagraph (F) 
        the following:
                    ``(G) service under a State program in which the 
                taxpayer in exchange for services receives an abatement 
                of real property taxes which is excluded from income 
                under section 139F of the Internal Revenue Code of 
                1986.''.
    (c) Effective Dates.--
            (1) The amendments made by subsection (a) shall apply to 
        taxable years beginning after December 31, 2012.
            (2) The amendments made by subsection (b) shall apply to 
        service performed after December 31, 2012.
                                 <all>