1099MISC for tree damage caused by utility company on an easement. Current year 1099 MISC is for damages that took place on easement. Is damage payment taxable?

Utility company expanded easement and purchased additional footage last year (2106) and provided 1099MISC last year.  Included on tax return in 2016 but will reduce basis of property.  Not taxed.  This year (2017) is for payment of damages to trees and land due to replacement of poles and lines.  Reported to us on 1099MISC.  How do we treat damage payments for tax purposes?