Bill > S1233

Introduced Session

This bill, designated as the Holocaust Reparations Tax Exemption Act, provides an exemption from the transfer inheritance tax for an amount equal to the value of certain payments and distributions received by Holocaust survivors and their eligible descendants. The purpose of the bill is to alleviate the tax burden on the value of restitution payments and distributions received by Holocaust survivors and eligible descendants during their lifetime and passed along at death for the benefit of future generations. Under the bill, the restitution payments and distributions that are eligible for the exemption are broadly defined to include any payment or distribution that: (1) is paid to the decedent during the life of the decedent by reason of the decedent's status as an individual who was persecuted by the Nazi regime or by reason of the decedent's status as an eligible descendant of an individual persecuted by the Nazi regime, including any amount paid by a foreign country, the United States of America, or any other foreign or domestic entity, or a fund established by any country or entity, any amount paid as a result of a final resolution of a legal action, and any amount paid under a law providing for payments or restitution of property; (2) constitutes the direct or indirect return to the decedent of, or compensation or reparation paid to the decedent for, assets stolen, hidden, or otherwise lost to an individual who was persecuted by the Nazi regime before, during, or immediately after World War II by reason of the decedent's status as a persecuted individual or by reason of the decedent's status as an eligible descendant of a persecuted individual, including any proceeds of insurance under policies issued on persecuted individuals by European insurance companies immediately before and during World War II; or (3) consists of interest that is paid as part of any payment or distribution described by (1) or (2) above. Under the bill, the value of the eligible restitution payments or distributions is determined based on the value when received. The bill provides that the value of each eligible payment or distribution is determined for purposes of the exemption based upon the clear market value of the payment or distribution on the date the payment or distribution is received by the decedent. The bill defines an eligible descendant of an individual persecuted by the Nazi regime as an individual who is lineally related to a persecuted individual, by blood, affinity, or adoption, and who is not more than two generations removed in descent from the individual who was persecuted. The bill takes effect immediately and provides for the exemption to apply to transfers associated with deaths occurring on or after the 90th day next following the date of enactment.

Committee Categories

Jim Beach (D)*,  Patrick Diegnan (D), 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/09/2024)

Official Document