H.R. 2279 — No Tax on LOSAP Act

This section increases the qualified payment exclusion amount under Section 139B(c)(2)(B) of the Internal Revenue Code to $1,000 (from $50). (Section 139B excludes from gross income certain disaster relief payments made by federal, state, or local governments or specified tax-exempt organizations for victims' personal, family, living, or funeral expenses incurred due to a qualified disaster.) The change applies to amounts awarded after the date of enactment.

This section clarifies that payments under any length of service award program (i.e., payments to volunteer firefighters and emergency medical personnel based on years of service) are included in the definition of qualified disaster relief payment under Section 139B of the Internal Revenue Code (i.e., payments excludable from gross income). The amendment applies to amounts awarded after the date of enactment.