1. Short title This Act may be cited as the Earthquake Mitigation Incentive and Tax Parity Act of 2017 . 2. Exclusion of amounts received from State-based earthquake loss mitigation programs (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139F the following new section: 139G. State-based earthquake loss mitigation programs (a) In general Gross income shall not include any amount received as a qualified earthquake mitigation payment. (b) Qualified earthquake mitigation payment For purposes of this section— (1) Qualified earthquake mitigation payment The term qualified earthquake mitigation payment means any amount which is received as a loan, loan forgiveness, grant, credit, rebate, voucher, or other financial incentive pursuant to an earthquake loss mitigation program established by a State, or agency, instrumentality, or political subdivision thereof, by a residential property owner or occupant to assist with expenses paid, or obligations incurred, for earthquake loss mitigation. (2) Earthquake loss mitigation program The term earthquake loss mitigation program includes a program established by a State, or agency, instrumentality, or political subdivision thereof, by itself or together with— (A) an organization described in section 501(c) and exempt from tax under section 501(a), (B) an organization determined to be exempt from State taxes pursuant to the laws of the relevant State, or (C) a public instrumentality of a State pursuant to a joint exercise of powers. (3) Earthquake loss mitigation The term earthquake loss mitigation means an activity that reduces seismic risks to a residential structure or its contents. (4) Seismic The term seismic has the meaning given such term by section 4(3) of the Earthquake Hazards Reduction Act of 1977 ( 42 U.S.C. 7703(3) ). (5) No increase in basis Notwithstanding any other provision of this subtitle, no increase in the basis or adjusted basis of any property shall result from any amount