H.R. 1179: Chiquita Canyon Tax Relief Act

Introduced Feb 10, 20250 cosponsors

Sponsor

George Whitesides

George Whitesides

Democrat · CA-27

Bill Progress

IntroducedFeb 10
Committee 
Pass House 
Pass Senate 
Signed 
Law 

Latest Action · Feb 10, 2025

Referred to the House Committee on Ways and Means.

Tax break for Chiquita Canyon victims

Why it matters

People paid for harm tied to the Chiquita Canyon landfill event can exclude those payments from federal taxes for amounts received on or after March 1, 2024.

The bill also identifies exactly who can make eligible payments: a Federal, State, or local government agency; Waste Connections, Inc.; or any subsidiary, insurer, or agent of Waste Connections, Inc. or any related person. The effective date is equally precise: it applies to amounts received on or after March 1, 2024. So the practical question is not whether a person suffered harm after May 1, 2022 alone, but whether the payment they received came from one of those listed payors and was received on or after March 1, 2024.

What does H.R. 1179 do?

1

Tax-free treatment starts March 1, 2024

The bill applies to amounts received on or after March 1, 2024, and treats Chiquita Canyon elevated temperature landfill event payments as “qualified disaster relief payments” under section 139(b) of the Internal Revenue Code of 1986.

2

Covers event beginning May 1, 2022

The covered event is defined as the elevated temperature landfill event occurring beneath the Chiquita Canyon Landfill in Los Angeles County, California, beginning on May 1, 2022. That date and location limit the bill to one specific disaster.

3

Includes property loss and relocation costs

Covered payments include compensation for loss, damages, expenses, relocation, suffering, and loss in real property value resulting from the Chiquita Canyon event. The bill explicitly says payments received by or on behalf of an individual qualify.

4

Pays for closing costs, including commissions

The definition of covered payments includes closing costs with respect to real property, including realtor commissions. That is unusually specific and means home-sale transaction costs tied to the event can receive the bill’s tax relief.

5

Covers inconvenience and access problems

The bill says compensation for inconvenience, including access to real property, is covered. So if residents are paid because the event made it harder to use or reach their property in Los Angeles County, California, those amounts can qualify.

6

Limits eligible payors to named entities

Payments qualify only if they come from a Federal, State, or local government agency; Waste Connections, Inc.; or any subsidiary, insurer, or agent of Waste Connections, Inc. or any related person. That list controls who can make tax-favored payments under the bill.

Who benefits from H.R. 1179?

Residents receiving compensation after March 1, 2024

Individuals who receive covered payments on or after March 1, 2024, can benefit from those amounts being treated as qualified disaster relief payments under section 139(b), reducing or eliminating federal tax on money meant to address harm from the Chiquita Canyon event.

Homeowners near Chiquita Canyon Landfill

People paid for loss in real property value, closing costs with respect to real property, or realtor commissions tied to the event beginning on May 1, 2022, would benefit because those housing-related payments are specifically included.

Families forced to move or absorb extra costs

Individuals compensated for relocation, expenses, suffering, or inconvenience, including access to real property, would benefit because the bill expressly covers those categories, not just direct physical damage.

People paid by government or Waste Connections entities

Anyone receiving eligible compensation from a Federal, State, or local government agency, Waste Connections, Inc., or a subsidiary, insurer, or agent of Waste Connections, Inc. could qualify, as long as the payment relates to the Los Angeles County event and is received on or after March 1, 2024.

Who is affected by H.R. 1179?

Waste Connections, Inc.

Waste Connections, Inc. is specifically named as an eligible payor, so compensation it provides for the Chiquita Canyon event beginning on May 1, 2022, can receive the bill’s tax treatment if paid on or after March 1, 2024.

Subsidiaries, insurers, agents, and related persons of Waste Connections, Inc.

The bill extends eligible-payor status beyond the parent company to any subsidiary, insurer, or agent of Waste Connections, Inc. or any related person, meaning those entities may need to structure and document payments to fit the bill’s definitions.

Federal, State, and local government agencies

Government agencies that provide relief tied to the Chiquita Canyon Landfill event in Los Angeles County, California, would be able to make payments that qualify for this tax treatment.

Tax administrators and payment recipients

Both administrators and recipients will need to determine whether a payment fits the bill’s detailed definitions: it must relate to the event beneath the Chiquita Canyon Landfill beginning on May 1, 2022, come from a listed payor, and be received on or after March 1, 2024.

H.R. 1179 Common Questions

Are Chiquita Canyon settlement payments taxable if received after March 1 2024?

No. Under the Chiquita Canyon Tax Relief Act (SEC. 2(a), 2(d)), eligible Chiquita Canyon event payments received on or after March 1, 2024 are treated as qualified disaster relief payments.

Can Chiquita Canyon payments for reduced home value be tax free?

Yes. Under the Chiquita Canyon Tax Relief Act (SEC. 2(b)), payments for loss in real property value from the landfill event are covered if they come from an authorized payor.

Can Chiquita Canyon relocation payments be excluded from federal taxes?

Yes. Under the Chiquita Canyon Tax Relief Act (SEC. 2(b)), amounts for relocation tied to the covered landfill event qualify if received from a listed payor.

Does the Chiquita Canyon tax relief cover closing costs and realtor commissions?

Yes. The Chiquita Canyon Tax Relief Act specifically includes closing costs for real property, including realtor commissions, in covered payments (SEC. 2(b)).

Can Chiquita Canyon payments for inconvenience or property access problems be tax free?

Yes. Under the Chiquita Canyon Tax Relief Act (SEC. 2(b)), compensation for inconvenience, including access to real property, is included in covered payments.

Which companies or agencies can make tax-free Chiquita Canyon relief payments?

According to HR1179 SEC. 2(b), eligible payors are federal, state, or local agencies; Waste Connections, Inc.; and any subsidiary, insurer, or agent of Waste Connections or related person.

Does the Chiquita Canyon tax break apply to payments from Waste Connections insurers or agents?

Yes. Under the Chiquita Canyon Tax Relief Act (SEC. 2(b)), payments can qualify if made by a subsidiary, insurer, or agent of Waste Connections, Inc., or a related person.

What date does the Chiquita Canyon landfill event have to start for the tax relief to apply?

The bill ties coverage to the elevated temperature landfill event beneath Chiquita Canyon Landfill in Los Angeles County beginning May 1, 2022 (SEC. 2(c)).

Does the Chiquita Canyon tax relief only apply in Los Angeles County California?

Yes. Under the Chiquita Canyon Tax Relief Act (SEC. 2(c)), the covered event is specifically the elevated temperature landfill event beneath the Chiquita Canyon Landfill in Los Angeles County, California.

Can payments received on behalf of an individual qualify for Chiquita Canyon tax relief?

Yes. According to HR1179 SEC. 2(b), covered amounts include payments received by or on behalf of an individual for specified harms from the Chiquita Canyon event.

Based on H.R. 1179 bill text

HR1179 Legislative Journey

1 actions

House: Committee Action

Feb 10, 2025

Referred to the House Committee on Ways and Means.

About the Sponsor

George Whitesides

George Whitesides

Democrat, California's 27th congressional district · 1 years in Congress

Committees: Science, Space, and Technology, Armed Services

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Committee Sponsors

Ways and Means Committee

19D26R
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0 of 45 committee members cosponsored

No committee members have cosponsored this bill

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H.R. 1179 Quick Facts

Cosponsors
0
Committee
Ways and Means
Chamber
House
Policy
Emergency Management
Introduced
Feb 10, 2025

Referred to the House Committee on Ways and Means.

Feb 10, 2025

Constituent Resources

Get notified when this bill moves

Official Sources

H.R. 1179 on Congress.gov

Official bill page with text, status, sponsors, and actions for the Chiquita Canyon Tax Relief Act.

26 U.S. Code § 139 - Disaster relief payments

The bill expressly treats eligible Chiquita Canyon payments as qualified disaster relief payments under Internal Revenue Code section 139(b).

IRS Publication 525 - Taxable and Nontaxable Income

IRS guidance on taxable versus nontaxable income can help explain how excluded disaster relief payments are generally treated for federal tax purposes.

IRS Tax Relief in Disaster Situations

Official IRS disaster tax relief page provides context for how the federal tax system handles disaster-related relief and exclusions.

EPA Superfund Site Profile - Chiquita Canyon Landfill

EPA's official site profile provides government background on the Chiquita Canyon Landfill and its regulatory status.

Los Angeles County Public Health - Chiquita Canyon Landfill Odor Response

Los Angeles County's official public health page documents the local government response to the Chiquita Canyon landfill incident referenced in the bill.

GovInfo - Internal Revenue Code of 1986

GovInfo provides official federal legal materials, including the U.S. Code, relevant to the bill's reference to section 139 of the Internal Revenue Code.

CBO Cost Estimates

Congressional Budget Office cost estimates are the official source if a score is later published for this bill.

H.R. 1179 Bill Text

PDF

To exclude from gross income certain relief payments to the victims of the Chiquita Canyon elevated temperature landfill event.

Source: U.S. Government Publishing Office

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