113 HR 5082 IH: National Disaster Tax Relief Act of 2014 U.S. House of Representatives 2014-07-11 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 113th CONGRESS 2d Session H. R. 5082 IN THE HOUSE OF REPRESENTATIVES July 11, 2014 Mr. Reed (for himself, Mr. Gardner, Mr. Gibson, Mr. Cole, Mr. Griffin of Arkansas, Mr. Harper, Mr. Runyan, Mrs. Capito, Mr. McAllister, Mr. King of New York, Mr. Cassidy, Mr. Gerlach, Mr. Fitzpatrick, Mr. Schock, Mr. Pascrell, Mr. Butterfield, Ms. DelBene, Mr. Polis, Mr. Pallone, Mr. Crowley, Mr. Holt, Mr. Larson of Connecticut, Mr. Rangel, Mr. Richmond, Mr. Israel, Mr. Bishop of New York, Mr. Larsen of Washington, Mr. Sires, Mrs. McCarthy of New York, and Mr. Rodney Davis of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide tax relief for major disaster areas declared in 2012, 2013, and 2014, and for other purposes.
1.
Short title; table of contents
(a)
Short title
This Act may be cited as the National Disaster Tax Relief Act of 2014. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Title I—Tax relief relating to disasters in 2012, 2013, and 2014 Sec. 101. Expensing of qualified disaster expenses. Sec. 102. Increased limitation on charitable contributions for disaster relief. Sec. 103. Losses attributable to disasters in 2012, 2013, and 2014. Sec. 104. Net operating losses attributable to disasters in 2012, 2013, and 2014. Sec. 105. Waiver of certain mortgage revenue bond requirements following 2012, 2013, and 2014 disasters. Sec. 106. Increased expensing and bonus depreciation for qualified disaster assistance property following 2012, 2013, and 2014 disasters. Sec. 107. Increase in new markets tax credit for investments in community development entities serving 2012, 2013, and 2014 disaster areas. Sec. 108. Special rules for use of retirement funds in connection with federally declared disasters in 2012, 2013, or 2014. Sec. 109. Additional exemption for housing qualified disaster displaced individuals. Sec. 110. Exclusions of certain cancellations of indebtedness by reason of 2012, 2013, or 2014 disasters. Sec. 111. Special rule for determining earned income of individuals affected by federally declared disasters. Sec. 112. Increase in rehabilitation credit for buildings in 2012, 2013, and 2014 disaster areas. Sec. 113. Advanced refundings of certain tax-exempt bonds. Sec. 114. Qualified disaster area recovery bonds. Sec. 115. Additional low-income housing credit allocations. Sec. 116. Facilitation of transfer of water leasing and water by mutual ditch or irrigation companies in disaster areas. Title II—Other disaster tax relief provisions Sec. 201. Exclusion for disaster mitigation payments received from State and local governments. Sec. 202. Natural disaster funds.
<enum>I</enum><header>Tax relief relating to disasters in 2012, 2013, and 2014</header> <section id="HD98BD3A023E84378A2073A8DEC056841"><enum>101.</enum><header>Expensing of qualified disaster expenses</header> <subsection id="HF3101EEEBE9E4056A714837D829E681E"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/198A">Section 198A(b)(2)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="H4B5FD542582646808900E1F854A809CE"><enum>(1)</enum><text>by striking <quote>before January 1, 2010</quote> in subparagraph (A) and inserting <quote>during the period beginning after December 31, 2007, and before January 1, 2010, or during the period beginning after December 31, 2011, and before January 1, 2015</quote>, and</text> </paragraph><paragraph id="H8D1C74A215E041C49E206F6E0A8B15A9"><enum>(2)</enum><text>by striking <quote>before such date</quote> each place it appears in subparagraphs (B) and (C) and inserting <quote>during any such period</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8D2261DF6F0D4DF1BB37AC49E76E7226"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to amounts paid or incurred after December 31, 2011, in connection with disasters declared after such date.</text> </subsection></section><section id="H3E0EF795EE794E0C8A0B42F194D97F73"><enum>102.</enum><header>Increased limitation on charitable contributions for disaster relief</header> <subsection id="HBCFA0E71BC5A4A6E8EF722B6E18A7FC5"><enum>(a)</enum><header>Individuals</header><text display-inline="yes-display-inline">Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170(b)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively, and by inserting after subparagraph (E) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H58A6DDDB0CC241C6A618A3C977E1E855" style="OLC"> <subparagraph id="H8653C2EF25D64916BC829D193FA61A45"><enum>(F)</enum><header>Qualified disaster contributions</header> <clause id="H4034C49D75084A28A290906DD6299125"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 80 percent of the taxpayer's contribution base over the amount of all other charitable contributions allowable under this paragraph.</text> </clause><clause id="H9693A86F18E04C4B958D486292F35E87"><enum>(ii)</enum><header>Carryover</header><text>If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time.</text> </clause><clause id="HAC606A9948D347E8BD789A1A1FCF8976"><enum>(iii)</enum><header>Coordination with other subparagraphs</header><text>For purposes of applying this subsection and subsection (d)(1), contributions described in clause (i) shall not be treated as described in subparagraph (A) and such subparagraph shall be applied without regard to such contributions.</text> </clause><clause id="H266FD5C004B44AAA8B3F221FDDFBCFB9"><enum>(iv)</enum><header>Qualified disaster contributions</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>qualified disaster contribution</term> means any charitable contribution if—</text> <subclause id="H3AFC3283B7844EAC863B8EA797F209C9"><enum>(I)</enum><text>such contribution is for relief efforts related to a federally declared disaster (as defined in section 165(h)(3)(C)(i)),</text> </subclause><subclause id="HAE53EBDB787A4A419533DE9B6CA66DFC"><enum>(II)</enum><text display-inline="yes-display-inline">such contribution is made during the period beginning on the applicable disaster date with respect to the disaster described in subclause (I) and ending on December 31, 2014, and</text> </subclause><subclause id="H862BD6312CD9426FAAFDDB6E1A16145E"><enum>(III)</enum><text display-inline="yes-display-inline">such contribution is made in cash to an organization described in subparagraph (A) (other than an organization described in section 509(a)(3)).</text></subclause><continuation-text continuation-text-level="clause">Such term shall not include a contribution if the contribution is for establishment of a new, or maintenance in an existing, donor advised fund (as defined in section 4966(d)(2)).</continuation-text></clause><clause commented="no" display-inline="no-display-inline" id="H26FEBE4EDB3C41DB92CC82A84526B8D1"><enum>(v)</enum><header display-inline="yes-display-inline">Applicable disaster date</header><text display-inline="yes-display-inline">For purposes of clause (iv)(II), the term <term>applicable disaster date</term> means, with respect to any federally declared disaster described in clause (iv)(I), the date on which the disaster giving rise to the Presidential declaration described in section 165(h)(3)(C)(i) occurred.</text> </clause><clause id="HE7289AECFCFC4244898D1EFD0F4D5795"><enum>(vi)</enum><header>Substantiation requirement</header><text display-inline="yes-display-inline">This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in clause (iv)(III).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF1EB225A57FD4B3EA189C23ECE3EBA63"><enum>(b)</enum><header>Corporations</header> <paragraph id="HA13CB27179EB4C089926911CB893E700"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170(b)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H8BDEE090CDC44CEC87723C834D78DE76" style="OLC"> <subparagraph id="HF25748C40A0643D680EE65C47D007E6E"><enum>(C)</enum><header>Qualified disaster contributions</header> <clause id="HB0782C0BFA5D46DCBB1A11B27036872D"><enum>(i)</enum><header>In general</header><text>Any qualified disaster contribution shall be allowed to the extent that the aggregate of such contributions does not exceed the excess of 20 percent of the taxpayer's taxable income over the amount of charitable contributions allowed under subparagraph (A).</text> </clause><clause id="H02A1C44F4728473F9B46140ADD1D4470"><enum>(ii)</enum><header>Carryover</header><text>If the aggregate amount of contributions described in clause (i) exceeds the limitation under clause (i), such excess shall be treated (in a manner consistent with the rules of subsection (d)(1)) as a charitable contribution to which clause (i) applies in each of the 5 succeeding years in order of time.</text> </clause><clause id="H682C15D69BCC43C2B53E38CE5BA42534"><enum>(iii)</enum><header>Qualified disaster contribution</header><text>The term <term>qualified disaster contribution</term> has the meaning given such term under paragraph (2)(F)(iv).</text> </clause><clause id="H26D115049988400F96168B0CA3DF7A79"><enum>(iv)</enum><header>Substantiation requirement</header><text display-inline="yes-display-inline">This paragraph shall not apply to any qualified disaster contribution unless the taxpayer obtains from such organization to which the contribution was made a contemporaneous written acknowledgment (within the meaning of subsection (f)(8)) that such contribution was used (or is to be used) for a purpose described in paragraph (1)(F)(iv)(III).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H19B851C860044562BC055D80270F5401"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="H3CC62F402C5A45D29D45DA5E36DFAEA2"><enum>(A)</enum><text>Subparagraph (A) of section 170(b)(2) of such Code is amended by striking <quote>subparagraph (B) applies</quote> and inserting <quote>subparagraphs (B) and (C) apply</quote>.</text> </subparagraph><subparagraph id="HE6CC9A3AC8D3412AAEAC0BCB762F0BCF"><enum>(B)</enum><text>Subparagraph (B) of section 170(b)(2) of such Code is amended by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraphs (A) and (C)</quote>.</text> </subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H68F86EEC99CA4EEBA2B2D2579E898B45"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to disasters arising in taxable years ending after December 31, 2011.</text> </subsection></section><section id="H52E6E82DBBD8487C917430B9853D7255"><enum>103.</enum><header>Losses attributable to disasters in 2012, 2013, and 2014</header> <subsection id="H7286C8DED59B425E80DBBD1C7C09C474"><enum>(a)</enum><header>Waiver of adjusted gross income limitation; increase in standard deduction by disaster casualty loss</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/165">section 165(h)(3)(B)(i)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>before January 1, 2010</quote> and inserting <quote>during the period beginning after December 31, 2007, and before January 1, 2010, or during the period beginning after December 31, 2011, and before January 1, 2015</quote>.</text> </subsection><subsection id="HF3CD9E9B779443F097920FE1437CF8F1"><enum>(b)</enum><header>Loss allowed whether or not individual itemized deductions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/62">Section 62(a)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after paragraph (21) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H1AAC58ABF93242CAB9357DD9A97045E3" style="OLC"> <paragraph id="HE719F4D1E89F4BFBBC050D9ACCA4C7D0"><enum>(22)</enum><header>Disaster casualty losses</header><text>Any net disaster loss (as defined in section 165(h)(3)(B)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H3E5B11B0E17E410A9EA083DE24CA76D4"><enum>(c)</enum><header>Technical amendment</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/165">section 165(h)(3)(C)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>major</quote> after <quote>means any</quote>.</text> </subsection><subsection id="H9423A168C7A8443294723AA26EC2B063"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to disasters declared in taxable years beginning after December 31, 2011.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF435DFCA8B0D484FBBFB71FA19F059B8"><enum>(e)</enum><header display-inline="yes-display-inline">Use of amended income tax returns To take into account receipt of certain casualty loss grants by disallowing previously taken casualty loss deductions</header> <paragraph commented="no" display-inline="no-display-inline" id="HF8025D93B4994663A11E4537BBB30D55"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of the Internal Revenue Code of 1986, if a taxpayer—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H3F138ACD41654D5C85C9894CAD2FA8CB"><enum>(A)</enum><text display-inline="yes-display-inline">claims a deduction for any taxable year with respect to a casualty loss to a principal residence (within the meaning of section 121 of such Code) resulting from any federally declared disaster (as defined in section 165(h)(3)(C) of such Code) occurring during the period beginning after December 31, 2011, and before January 1, 2015, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD3167A6A01CC4683BBB63D0D64BA431A"><enum>(B)</enum><text display-inline="yes-display-inline">in a subsequent taxable year receives a grant under any Federal or State program as reimbursement for such loss,</text></subparagraph><continuation-text continuation-text-level="paragraph">such taxpayer may elect to file an amended income tax return for the taxable year in which such deduction was allowed (and for any taxable year to which such deduction is carried) and reduce (but not below zero) the amount of such deduction by the amount of such reimbursement.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA0E6065DB4F04B4CA41092DA49A2C1E1"><enum>(2)</enum><header display-inline="yes-display-inline">Time of filing amended return</header><text display-inline="yes-display-inline">Paragraph (1) shall apply with respect to any grant only if any amended income tax returns with respect to such grant are filed not later than the later of—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H4F3438B44C0A46AF88459627F78D10A3"><enum>(A)</enum><text display-inline="yes-display-inline">the due date for filing the tax return for the taxable year in which the taxpayer receives such grant, or</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HDDFD06118F3C407CA2C03027E895990B"><enum>(B)</enum><text display-inline="yes-display-inline">the date which is 1 year after the date of the enactment of this Act.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB4A4E199404241D5903C82A3A6BA1429"><enum>(3)</enum><header display-inline="yes-display-inline">Waiver of penalties and interest</header><text display-inline="yes-display-inline">Any underpayment of tax resulting from the reduction under paragraph (1) of the amount otherwise allowable as a deduction shall not be subject to any penalty or interest under such Code if such tax is paid not later than 1 year after the filing of the amended return to which such reduction relates.</text> </paragraph></subsection></section><section id="H74D4BE0E1EC64FCE85E9192F899861B0"><enum>104.</enum><header>Net operating losses attributable to disasters in 2012, 2013, and 2014</header> <subsection id="H5B115BEB020246D0B0725D302957A68E"><enum>(a)</enum><header>In general</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/172">section 172(j)(1)(A)(i)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>before January 1, 2010</quote> and inserting <quote>during the period beginning after December 31, 2007, and before January 1, 2010, or during the period beginning after December 31, 2011, and before January 1, 2015</quote>.</text> </subsection><subsection id="HCA2FF21DEE3643EEA3B3364D67EB109B"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to losses arising in taxable years beginning after December 31, 2011, in connection with disasters declared after such date.</text> </subsection></section><section id="H631B75AA66D14CBFAC6955785A466A9C"><enum>105.</enum><header>Waiver of certain mortgage revenue bond requirements following 2012, 2013, and 2014 disasters</header> <subsection id="H88E80CF4832D4447B0F1CDC064FC6CC4"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/143">Section 143(k)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="H3A1C8DF9BEDB424E8FD6B2FBE3EF77F4"><enum>(1)</enum><text>by redesignating paragraph (12), as added by section 709(a) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008, as paragraph (13), and</text> </paragraph><paragraph id="HF736AB5F68E94DC094037320124AC2FF"><enum>(2)</enum><text>by striking <quote>before January 1, 2010</quote> in subparagraphs (A)(i) and (B)(i) of such paragraph and inserting <quote>during the period beginning after December 31, 2007, and before January 1, 2010, or during the period beginning after December 31, 2011, and before January 1, 2015</quote>.</text> </paragraph></subsection><subsection id="HF4DED2437BDD482EA37194C985534145"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to disasters occurring after December 31, 2011.</text> </subsection></section><section commented="no" id="H33792D4979AD49DC800E1FAF8FBD4ED1"><enum>106.</enum><header>Increased expensing and bonus depreciation for qualified disaster assistance property following 2012, 2013, and 2014 disasters</header> <subsection commented="no" id="HEFBF15706D9B4650A3358914533F705A"><enum>(a)</enum><header>In general</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(n)(2)(A)(ii)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>before January 1, 2010</quote> and inserting <quote>during the period beginning after December 31, 2007, and before January 1, 2010, or during the period beginning after December 31, 2011, and before January 1, 2015</quote>.</text> </subsection><subsection commented="no" id="H68BB4C8C61FD441FB8122C8DA3AF5360"><enum>(b)</enum><header>Removal of exclusion</header><text>Section 168(n)(2)(B)(i) of such Code is amended by inserting <quote>and</quote> at the end of subclause (I), by striking <quote>, and</quote> at the end of subclause (II) and inserting a period, and by striking subclause (III).</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="H620C2971F29F41A484B61955F11DB6EB"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2011, with respect to disasters declared after such date.</text> </subsection></section><section id="H6B544A8122D4444DB3FC2B02695FBB17"><enum>107.</enum><header>Increase in new markets tax credit for investments in community development entities serving 2012, 2013, and 2014 disaster areas</header> <subsection id="H207A1E32906944A28C8FA1425A26BBDC"><enum>(a)</enum><header>In general</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/45D">section 45D</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HB099167D6FCF4F20BB0CBEED7AE2FB91" style="OLC"> <paragraph id="HBC02E0EEF4D74229B1BF2B09B3B3B343"><enum>(4)</enum><header>Increased special allocation for community development entities serving 2012, 2013, and 2014 disaster areas</header> <subparagraph id="H661206C3DAD147D7AF1877AF75EE307E"><enum>(A)</enum><header>In general</header><text>In the case of each calendar year which begins after 2012 and before 2016, the new markets tax credit limitation shall be increased by an amount equal to $500,000,000, to be allocated among qualified community development entities to make qualified low-income community investments within any 2012, 2013, or 2014 federally declared disaster area.</text> </subparagraph><subparagraph id="HD07177C3132943DAA74A5968BCE0DA55"><enum>(B)</enum><header>Allocation of increase</header><text>The amount of the increase in limitation under subparagraph (A) shall be allocated by the Secretary under paragraph (2) to qualified community development entities and shall give priority to such entities with a record of having successfully provided capital or technical assistance to businesses or communities within any 2011 or 2012 federally declared disaster area or areas for which the allocation is requested.</text> </subparagraph><subparagraph id="H15BB9D7DF7F5429790089BA7D19514C2"><enum>(C)</enum><header>Application of carryforward</header><text>Paragraph (3) shall be applied separately with respect to the amount of any increase under subparagraph (A).</text> </subparagraph><subparagraph commented="no" id="HB9D117F7E3B640D7B8015D472A3C1E85"><enum>(D)</enum><header>2012, 2013, or 2014 federally declared disaster area</header><text>For purposes of this paragraph, the term <term>2012, 2013, or 2014 federally declared disaster area</term> means any disaster area resulting from any federally declared disaster occurring after December 31, 2011, and before January 1, 2015. For purposes of the preceding sentence, the terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms in section 165(h)(3).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8B0DFEF38EC042B19BFBD658795A77A3"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years beginning after 2012.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="HC04B3D46A1714CA9AEC97BD690137AA6"><enum>108.</enum><header>Special rules for use of retirement funds in connection with federally declared disasters in 2012, 2013, or 2014</header> <subsection id="HFA24C31FE35C467A979DC533B4C752BD"><enum>(a)</enum><header>Tax-Favored withdrawals from retirement plans</header> <paragraph id="HA013C3A2C7804CD8BE584009C627D578"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="H2C740EC2FA304DE98D282C6E3F17CA50" style="OLC"> <subparagraph id="H48FCA0BCB1BD47309B59854ED3908CF8"><enum>(H)</enum><header>Distributions from retirement plans in connection with federally declared disasters during 2012, 2013, and 2014</header><text>Any qualified 2012, 2013, or 2014 disaster recovery distribution.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HAFD967EFD3AB4F348DC567646FF6D886"><enum>(2)</enum><header>Qualified disaster recovery distribution</header><text>Section 72(t) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HF18967AAF58C4E56AF20A4446E87E462" style="OLC"> <paragraph id="H83B28FD68E4D4C4984A0151B2CBAB128"><enum>(11)</enum><header>Qualified 2012, 2013, or 2014 disaster recovery distribution</header><text>For purposes of paragraph (2)(H)—</text> <subparagraph id="HB0D451B0A5D24B2B9855B5250B6C824B"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>qualified disaster recovery distribution</term> means, with respect to any federally declared disaster occurring during 2012, 2013, or 2014, any distribution from an eligible retirement plan made on or after the applicable disaster date and before January 1, 2015, to an individual whose principal place of abode on the applicable disaster date, is located in the disaster area and who has sustained an economic loss by reason of such federally declared disaster.</text> </subparagraph><subparagraph id="H7F70DB8D3D2F49BDA354D3DCFE7BBC16"><enum>(B)</enum><header>Dollar limitation</header> <clause id="HFA195A6FC1F044DA98C78F8DDA3C42AE"><enum>(i)</enum><header>In general</header><text>For purposes of this subsection, the aggregate amount of distributions received by an individual with respect to any federally declared disaster occurring during 2012, 2013, or 2014 shall not exceed $100,000.</text> </clause><clause id="H733561719E8C4573A024D6BD5A92D06D"><enum>(ii)</enum><header>Treatment of plan distributions</header><text>If a distribution to an individual would (without regard to clause (i)) be a qualified 2012, 2013, or 2014 disaster recovery distribution, a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a qualified 2012, 2013, or 2014 disaster recovery distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual with respect to any federally declared disaster occurring during 2012, 2013, or 2014 exceeds $100,000.</text> </clause><clause id="H70B8AAEC9D49422690A58F504DF4C171"><enum>(iii)</enum><header>Controlled group</header><text>For purposes of clause (ii), the term <term>controlled group</term> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text> </clause></subparagraph><subparagraph id="HDFEDC3ECEA3447ADB592FF43FAC4DAEA"><enum>(C)</enum><header>Amount distributed may be repaid</header> <clause id="H341E198FDEF047BC9538E1520DD54700"><enum>(i)</enum><header>In general</header><text>Any individual who receives a qualified 2012, 2013, or 2014 disaster recovery distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text> </clause><clause id="H528F18D2227C46E1844FA2695B00388C"><enum>(ii)</enum><header>Treatment of repayments of distributions from eligible retirement plans other than IRAs</header><text>For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified 2012, 2013, or 2014 disaster recovery distribution from an eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the qualified 2012, 2013, or 2014 disaster recovery distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </clause><clause id="H94CB2FC4BCE340179D8F0B6DCF14ADD3"><enum>(iii)</enum><header>Treatment of repayments for distributions from IRAs</header><text>For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified 2012, 2013, or 2014 disaster recovery distribution from an individual retirement plan (as defined by section 7701(a)(37)), then, to the extent of the amount of the contribution, the qualified 2012, 2013, or 2014 disaster recovery distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </clause></subparagraph><subparagraph id="H91CB4764F3F34F0697C3F27302304E50"><enum>(D)</enum><header>Income inclusion spread over 3-year period</header> <clause id="H9695F0387311414DA823745642745FB9"><enum>(i)</enum><header>In general</header><text>In the case of any qualified 2012, 2013, or 2014 disaster recovery distribution, unless the taxpayer elects not to have this paragraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable-year period beginning with such taxable year.</text> </clause><clause commented="no" display-inline="no-display-inline" id="H6A159AE7F2AF4CE5A2E0E554124AF16B"><enum>(ii)</enum><header>Special rule</header><text>For purposes of clause (i), rules similar to the rules of subparagraph (E) of section 408A(d)(3) shall apply.</text> </clause></subparagraph><subparagraph id="H69D89294FABA416BB32985C599A34991"><enum>(E)</enum><header>Other definitions</header> <clause id="HD2FF55C011D04E45A8BD37B93132B447"><enum>(i)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </clause><clause id="H38D80D4A746E44B79D6A9D289445A561"><enum>(ii)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text> </clause><clause id="H137F56CB08EB43128A6013D12BBF1E8C"><enum>(iii)</enum><header>Eligible retirement plan</header><text>The term <term>eligible retirement plan</term> shall have the meaning given such term by section 402(c)(8)(B).</text> </clause></subparagraph><subparagraph id="HFD09CBD83D5D45EA955D2CDC1330D2B3"><enum>(F)</enum><header>Special rules</header> <clause id="HB24597BCAB204F9691649BB63A646D9D"><enum>(i)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>For purposes of sections 401(a)(31), 402(f), and 3405, qualified 2012, 2013, or 2014 disaster recovery distributions shall not be treated as eligible rollover distributions.</text> </clause><clause id="H9F62471C4B384EEA92EB15F7114EF357"><enum>(ii)</enum><header>Qualified 2012, 2013, or 2014 disaster recovery distributions treated as meeting plan distribution requirements</header><text>For purposes of this title, a qualified 2012, 2013, or 2014 disaster recovery distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="HE33D5A5E821542B49021C9D5AC830213"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to distributions with respect to disaster declared after December 31, 2011.</text> </paragraph></subsection><subsection id="H69FD17AA7F704DC2B594BD3C1AF5E406"><enum>(b)</enum><header>Loans from qualified plans</header> <paragraph id="H4A44BB9D65354EB4A2E31442C4FE634D"><enum>(1)</enum><header>In general</header><text>Subsection (p) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HA1ACA48ACAD74AC0829A0BEBDC888E0C" style="OLC"> <paragraph id="H02038F1946204718BBF604901A37268B"><enum>(6)</enum><header>Increase in limit on loans not treated as distributions with respect to 2012, 2013, and 2014 disasters</header> <subparagraph id="H47F45489E1464D178F7819D4476B4E2D"><enum>(A)</enum><header>In general</header><text>In the case of any loan from a qualified employer plan to a qualified individual made during the applicable period—</text> <clause id="HA61E86C004D1478EB0EB105403F6613C"><enum>(i)</enum><text>clause (i) of paragraph (2)(A) shall be applied by substituting <quote>$100,000</quote> for <quote>$50,000</quote>, and</text> </clause><clause id="HFEB386724859469CB22E5F77716BC739"><enum>(ii)</enum><text>clause (ii) of such paragraph shall be applied by substituting <quote>the present value of the nonforfeitable accrued benefit of the employee under the plan</quote> for <quote>one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan</quote>.</text> </clause></subparagraph><subparagraph id="HF033BAF92D824A8A97D5E8BC16DA149E"><enum>(B)</enum><header>Delay of repayment</header><text>In the case of a qualified individual with an outstanding loan on or after the applicable disaster date from a qualified employer plan—</text> <clause id="HFF1523AD9F2240ABA605F3B54BA2AE56"><enum>(i)</enum><text>if the due date pursuant to subparagraph (B) or (C) of paragraph (2) for any repayment with respect to such loan occurs during the period beginning on the applicable disaster date and ending on December 31, 2014, such due date shall be delayed for 1 year,</text> </clause><clause id="HA845E6559DB4498A9523DBAD6082AF6B"><enum>(ii)</enum><text>any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under clause (i) and any interest accruing during such delay, and</text> </clause><clause id="H10559D20D13D4C479D4919C9B8D5F192"><enum>(iii)</enum><text>in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of paragraph (2), the period described in clause (i) shall be disregarded.</text> </clause></subparagraph><subparagraph id="H67F418898B19408EBE2B99C6AEA49D9D"><enum>(C)</enum><header>Definitions</header><text>For purposes of this paragraph—</text> <clause id="H6E91374F9FF544AC9B131902AEA4BE75"><enum>(i)</enum><header>Qualified individual</header><text>The term <term>qualified individual</term> means, with respect to any federally declared disaster occurring during 2012, 2013, or 2014, an individual whose principal place of abode on the applicable disaster date is located in the disaster area and who has sustained an economic loss by reason of such federally declared disaster.</text> </clause><clause id="HDB2D93B189C842EE9AAD22020D0F3D5E"><enum>(ii)</enum><header>Applicable period</header><text>The applicable period is the period beginning on the applicable disaster date and ending on December 31, 2014.</text> </clause><clause id="HBD51DAEE279F47B4B507E1D723BACC5C"><enum>(iii)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </clause><clause id="H0E52AF3BC8A7453CBD3FB1EFDF51A1E1"><enum>(iv)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H05B5F0247B5B41DEB292559F23ED6FB1"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to loans made with respect to disaster declared after December 31, 2011.</text> </paragraph></subsection><subsection id="H1D3E7ED5ADBF408BB7C289E0302C8746"><enum>(c)</enum><header>Provisions relating to plan amendments</header> <paragraph id="H77BD6D4494FF4E26B95BEDB069033C26"><enum>(1)</enum><header>In general</header><text>If this subsection applies to any amendment to any plan or annuity contract, such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in paragraph (2)(B)(i).</text> </paragraph><paragraph id="HF1DFF9004D0F4453BABC4CFF96D09467"><enum>(2)</enum><header>Amendments to which subsection applies</header> <subparagraph id="H93414DCED3B649109DAC8990CCABCDFA"><enum>(A)</enum><header>In general</header><text>This subsection shall apply to any amendment to any plan or annuity contract which is made—</text> <clause id="HB7E5134A58394E2E85D9CD974E8F7D03"><enum>(i)</enum><text>pursuant to any provision of, or amendment made by, this section, or pursuant to any regulation issued by the Secretary or the Secretary of Labor under any provision of, or amendment made by, this section, and</text> </clause><clause id="HB8100B6BFE694D6E9F98C12358C7AFBB"><enum>(ii)</enum><text>on or before the last day of the first plan year beginning on or after January 1, 2015, or such later date as the Secretary may prescribe.</text></clause><continuation-text continuation-text-level="subparagraph">In the case of a governmental plan (as defined in section 414(d)), clause (ii) shall be applied by substituting the date which is 2 years after the date otherwise applied under clause (ii).</continuation-text></subparagraph><subparagraph id="HF3CC261C4FD4416184FD309CE970E762"><enum>(B)</enum><header>Conditions</header><text>This subsection shall not apply to any amendment unless—</text> <clause id="HD38621ED19C342E2815B04C4BF5C6AA1"><enum>(i)</enum><text>during the period—</text> <subclause id="H95977A9B8EC54513ACFE016204606F57"><enum>(I)</enum><text>beginning on the date that the provisions of, and amendments made by, this section or the regulation described in subparagraph (A)(i) takes effect (or in the case of a plan or contract amendment not required by the provisions of, or amendments made by, this section or such regulation, the effective date specified by the plan), and</text> </subclause><subclause id="H696C190F7B854D4B815355A499FABDCE"><enum>(II)</enum><text>ending on the date described in subparagraph (A)(ii) (or, if earlier, the date the plan or contract amendment is adopted),</text></subclause><continuation-text continuation-text-level="clause">the plan or contract is operated as if such plan or contract amendment were in effect; and</continuation-text></clause><clause id="H030C992D82B64DA2BE0C0B46B1DF9EEB"><enum>(ii)</enum><text>such plan or contract amendment applies retroactively for such period.</text> </clause></subparagraph></paragraph></subsection></section><section id="H872B826090DC4B8D8C6C4B272879B105"><enum>109.</enum><header>Additional exemption for housing qualified disaster displaced individuals</header> <subsection id="H0C2A7BADC82741C8B622415D2D5BEFEB"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/151">Section 151</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H0EDC78BC630C4D4CA69DE621B0A424BA" style="OLC"> <subsection id="HF012D4460C26495EBD960E30C61C3BC5"><enum>(g)</enum><header>Additional exemption for certain disaster-Displaced individuals</header> <paragraph id="HA543A5FE42644CE3B68C359B21B4C7C5"><enum>(1)</enum><header>In general</header><text>In the case of any taxable year beginning in 2012, 2013, or 2014, there shall be allowed an exemption of $500 for each qualified disaster-displaced individual with respect to the taxpayer for the taxable year.</text> </paragraph><paragraph id="HEEFC5CF5B6094361BEB175E52D3B4E3D"><enum>(2)</enum><header>Limitations</header> <subparagraph id="H8AAE124FEFC240768A811EAEFE4DBF1B"><enum>(A)</enum><header>Dollar limitation</header><text>The exemption under paragraph (1) shall not exceed $2,000, reduced by the amount of the exemption under this subsection for all prior taxable years.</text> </subparagraph><subparagraph id="HCB6B4AFEE7D84863BA5F7EF83DBD7685"><enum>(B)</enum><header>Individuals taken into account only once</header><text>An individual shall not be taken into account under paragraph (1) if such individual was taken into account under this subsection by the taxpayer for any prior taxable year.</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H01561203F1EC4930A65297B0D336FB23"><enum>(C)</enum><header>Identifying information required</header><text>An individual shall not be taken into account under paragraph (1) for a taxable year unless the taxpayer identification number of such individual is included on the return of the taxpayer for such taxable year.</text> </subparagraph></paragraph><paragraph id="H3505F21E9C5E4A0FBA77CDC47E78958D"><enum>(3)</enum><header>Qualified disaster-displaced individual</header> <subparagraph id="H8A33B51A4D1D49BAA1DB5654D3325A76"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <term>qualified disaster-displaced individual</term> means, with respect to any taxpayer for any taxable year, any qualified individual if such individual is provided housing free of charge by the taxpayer in the principal residence of the taxpayer for a period of 60 consecutive days which ends in such taxable year. Such term shall not include the spouse or any dependent of the taxpayer.</text> </subparagraph><subparagraph id="HBFDBF5FDB9414555B689F4CC00548835"><enum>(B)</enum><header>Qualified individual</header><text display-inline="yes-display-inline">The term <term>qualified individual</term> means any individual who—</text> <clause id="H5CEBC05F552F4CBCA59AC403A6A0ED01"><enum>(i)</enum><text display-inline="yes-display-inline">on the date of a federally declared disaster occurring during 2012, 2013, or 2014 maintained such individual's principal place of abode in the disaster area declared with respect to such disaster, and</text> </clause><clause id="HA7EF4EB391E2432CAB57C476D584269C"><enum>(ii)</enum><text display-inline="yes-display-inline">was displaced from such principal place of abode by reason of the federally declared disaster.</text></clause><continuation-text continuation-text-level="subparagraph">For purposes of the preceding sentence, the terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms in section 165(h)(3).</continuation-text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB88FD489EF844FA796026100F90C47F0"><enum>(4)</enum><header>Compensation for housing</header><text>No deduction shall be allowed under this subsection if the taxpayer receives any rent or other amount (from any source) in connection with the providing of such housing.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HCB111A20E6764DB09B262E490EBBA9DB"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2011.</text> </subsection></section><section id="H0B000D5CEC134DDA802CF4852B6D221C"><enum>110.</enum><header>Exclusions of certain cancellations of indebtedness by reason of 2012, 2013, or 2014 disasters</header> <subsection id="H71E129D4D35E42E995BB5879F705C8BA"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/108">Section 108</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H298CC62DD7DC4CB0B656C0386D94FF7D" style="OLC"> <subsection id="HB1031E1A0A5C4BE59E7F3A78B62BD83A"><enum>(j)</enum><header>Discharge of indebtedness for individuals affected by 2012, 2013, and 2014 disasters</header> <paragraph id="H585A125216A946EDBE13502C6D8B41ED"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), gross income shall not include any amount which (but for this subsection) would be includible in gross income by reason of any discharge (in whole or in part) of indebtedness of a natural person described in paragraph (3) by an applicable entity (as defined in section 6050P(c)(1)) during the applicable period.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H54B52DE704A14208A22F40582D58DC90"><enum>(2)</enum><header display-inline="yes-display-inline">Exceptions for business indebtedness</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to any indebtedness incurred in connection with a trade or business.</text> </paragraph><paragraph id="HE77B39BE4C9941B4A1BEB58E91302522"><enum>(3)</enum><header>Persons described</header><text>A natural person is described in this paragraph if the principal place of abode of such person on the applicable disaster date was located in the disaster area with respect to any federally declared disaster occurring during 2012, 2013, or 2014.</text> </paragraph><paragraph id="H4FCE208392CB4C309AE8B79FAE2AEB54"><enum>(4)</enum><header>Applicable period</header><text>For purposes of this subsection, the term <term>applicable period</term> means the period beginning on the applicable disaster date and ending on the date which is 14 months after such date.</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="HEE3D0BB91A744DED84DEB5A450952179"><enum>(5)</enum><header>Other definitions</header><text>For purposes of this subsection—</text> <subparagraph id="HDEF60B3DFF274E9BB20AF1C460885046"><enum>(A)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </subparagraph><subparagraph id="HD107B30226B94ECEBD65159518D18636"><enum>(B)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H9BF605314F0C4BC692FA5E2B46AA6EB5"><enum>(b)</enum><header>Effective date</header><text>This section shall apply to discharges made on or after December 31, 2011.</text> </subsection></section><section id="H7BC367F82A9F41E19DF639FF5B105350"><enum>111.</enum><header>Special rule for determining earned income of individuals affected by federally declared disasters</header> <subsection id="H3DA165A2D7164225A4F7E1E3D45DA885"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/32">Section 32</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HCB355E25F00647BEBF0D666CBB2ABAA7" style="OLC"> <subsection id="H78F87DD5446647569F670C8B6FCBF285"><enum>(n)</enum><header>Special rule for determining earned income of taxpayers affected by federally declared disasters</header> <paragraph id="H0247E31BFE444F708FF47FF055209131"><enum>(1)</enum><header>In general</header><text>In the case of a qualified individual with respect to any federally declared disaster occurring during 2012, 2013, or 2014, if the earned income of the taxpayer for the taxable year which includes the applicable disaster date is less than the earned income of the taxpayer for the preceding taxable year, the credit allowed under this section and section 24(d) may, at the election of the taxpayer, be determined by substituting—</text> <subparagraph id="H7F7AE2602B3944DE917231793C57FAB1"><enum>(A)</enum><text>such earned income for the preceding taxable year, for</text> </subparagraph><subparagraph id="HA797D7500D9C475C91B35573976DD04E"><enum>(B)</enum><text>such earned income for the taxable year which includes the applicable date.</text> </subparagraph></paragraph><paragraph id="H3C4606CC038E40C485E6B2E1706CDA6B"><enum>(2)</enum><header>Qualified individual</header><text>For purposes of this subsection, the term <term>qualified individual</term> means, with respect to any federally declared disaster occurring during 2012, 2013, or 2014, any individual whose principal place of abode on the applicable disaster date, was located—</text> <subparagraph commented="no" id="H96A31D18F1B1410BA0381827A23DD073"><enum>(A)</enum><text>in any portion of a disaster area determined by the President to warrant individual or individual and public assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of the federally declared disaster, or</text> </subparagraph><subparagraph commented="no" id="H9D811F1488B548A3A6A3F9E3868D932E"><enum>(B)</enum><text>in any portion of the disaster area not described in subparagraph (A) and such individual was displaced from such principal place of abode by reason of the federally declared disaster.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE5C639ECAE304F1AA1B533998A0919BE"><enum>(3)</enum><header>Other definitions</header><text>For purposes of this paragraph—</text> <subparagraph id="HDB8A723A54E145BB90CA1E5AD8ABE738"><enum>(A)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </subparagraph><subparagraph id="HB07F5E9E687F4A2F95C3F6FCB8166395"><enum>(B)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text> </subparagraph></paragraph><paragraph id="H40F39C3197EC48B38DAB6260F00EB354"><enum>(4)</enum><header>Special rules</header> <subparagraph id="H5ECE0B436D4A4C43B1ACD85DF0A5C846"><enum>(A)</enum><header>Application to joint returns</header><text>For purposes of paragraph (1), in the case of a joint return for a taxable year which includes the disaster date—</text> <clause id="H17FB67C8CD9A40BBBC7ED77D29DDD2E4"><enum>(i)</enum><text>such paragraph shall apply if either spouse is a qualified individual, and</text> </clause><clause id="H1F2564C5EAE549799CE3A5C3C0CAABA1"><enum>(ii)</enum><text>the earned income of the taxpayer for the preceding taxable year shall be the sum of the earned income of each spouse for such preceding taxable year.</text> </clause></subparagraph><subparagraph id="H150F50A606D34DB1A96D55DAC8DF7528"><enum>(B)</enum><header>Uniform application of election</header><text>Any election made under paragraph (1) shall apply with respect to both sections 24(d) and this section.</text> </subparagraph><subparagraph id="HB18D47AB8ABF49F9A004FFEF04431A52"><enum>(C)</enum><header>Errors treated as mathematical error</header><text>For purposes of section 6213, an incorrect use on a return of earned income pursuant to paragraph (1) shall be treated as a mathematical or clerical error.</text> </subparagraph><subparagraph id="H393B48205F70472B8A531D9B734412F1"><enum>(D)</enum><header>No effect on determination of gross income, etc</header><text>Except as otherwise provided in this subsection, this title shall be applied without regard to any substitution under paragraph (1).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HF1E49E01A04F43ECB26FC1B0D47E5FBD"><enum>(b)</enum><header>Child tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/24">Section 24(d)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HD5053A58D2B7487E89CC0E6E0D3C99C2" style="OLC"> <paragraph id="H8C9048A6685449A293A24236413660B5"><enum>(5)</enum><header>Special rule for determining earned income of taxpayers affected by federally declared disasters</header><text>For election by qualified individuals with respect to certain federally declared disasters to substitute earned income from the preceding taxable year, see section 32(n).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H63AEFB3E09AC4150A7F7BA493C701744"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2011.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="HBAF1A459CAA94F37BC10A2DAD8EA34D4"><enum>112.</enum><header>Increase in rehabilitation credit for buildings in 2012, 2013, and 2014 disaster areas</header> <subsection commented="no" display-inline="no-display-inline" id="HE7D538A4BDD8445D98FB803A4D847E45"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/47">Section 47</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="H8034252D2AEC46DEA63C04B9780E015D" style="OLC"> <subsection commented="no" display-inline="no-display-inline" id="HD83569B67B8D48DE8CDF9694F35268F4"><enum>(e)</enum><header>Special rule for expenditures made in connection with certain disasters</header> <paragraph commented="no" display-inline="no-display-inline" id="H2D44C1DFABE5439CA73B0B06DD13A69E"><enum>(1)</enum><header>In general</header><text>In the case of qualified rehabilitation expenditures paid or incurred during the applicable period with respect to any qualified rehabilitated building or certified historic structure located in a disaster area with respect to any federally declared disaster occurring in 2012, 2013, or 2014, subsection (a) shall be applied—</text> <subparagraph commented="no" display-inline="no-display-inline" id="HE3F21DFE4B624D569A0E6F1033074578"><enum>(A)</enum><text>by substituting <quote>13 percent</quote> for <quote>10 percent</quote> in paragraph (1) thereof, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H634483497D8A4D9C8D6CEB656488C848"><enum>(B)</enum><text>by substituting <quote>26 percent</quote> for <quote>20 percent</quote> in paragraph (2) thereof.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0F373F61835C47EFAE86EDAE7C56DC7F"><enum>(2)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="HDCD547F528724F7E99E5142B2B1042E4"><enum>(A)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </subparagraph><subparagraph id="H70E42A1BFF88467CBC5537E0B3A7F90E"><enum>(B)</enum><header>Applicable period</header><text>The term <term>applicable period</term> means the period beginning on the applicable disaster date and ending on December 31, 2014.</text> </subparagraph><subparagraph id="H6502FE36E73F4FDFA8E95F131468F2A8"><enum>(C)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H8BCAAC5652374F669F45EAEF7C290243"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred after December 31, 2011.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H5CDDA0A6502C48BA896D456C913AEC44"><enum>113.</enum><header>Advanced refundings of certain tax-exempt bonds</header> <subsection commented="no" display-inline="no-display-inline" id="H4825A846EEA04E609453E83347D29C04"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/149">Section 149(d)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating paragraph (7) as paragraph (8) and by inserting after paragraph (6) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H59585E4B47BB4F4DA5A16BA4B0E509F7" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="HCBF5295794CE443EA4C9442D76B8B03D"><enum>(7)</enum><header>Special rule with respect to certain natural disasters</header> <subparagraph id="H920705E5504A400F99BB97171BF51841"><enum>(A)</enum><header>In general</header><text>With respect to a bond described in subparagraph (C), one additional advance refunding after the date of the enactment of this paragraph and before January 1, 2017, shall be allowed under the rules of this subsection if—</text> <clause id="H00E808AB7E424200B831499D6AF76686"><enum>(i)</enum><text>the Governor of the State designates the advance refunding bond for purposes of this subsection, and</text> </clause><clause id="H46B284AA794C4A4F97A22D0E688542E1"><enum>(ii)</enum><text>the requirements of subparagraph (E) are met.</text> </clause></subparagraph><subparagraph id="HFCCDA8D7336F4F8CA7C1CDE366F8EE90"><enum>(B)</enum><header>Certain private activity bonds</header><text>With respect to a bond described in subparagraph (C) which is an exempt facility bond described in paragraph (1) or (2) of section 142(a), one advance refunding after the date of the enactment of this paragraph and before January 1, 2017, shall be allowed under the applicable rules of this subsection (notwithstanding paragraph (2) thereof) if the requirements of clauses (i) and (ii) of subparagraph (A) are met.</text> </subparagraph><subparagraph id="H9E8F75C7BF1C49A0BED81BC8F6028EAD"><enum>(C)</enum><header>Bonds described</header><text>A bond is described in this paragraph if, with respect to any federally declared disaster, such bond—</text> <clause id="H2243F5468CB64CC6B9D02788DE287DCE"><enum>(i)</enum><text>was outstanding on the applicable disaster date, and</text> </clause><clause id="HEEF3FEF874D74589945F0731F34AEAA6"><enum>(ii)</enum><text>is issued by an applicable State or a political subdivision thereof.</text> </clause></subparagraph><subparagraph id="H9B61BB9BFB2E493C93BC9A100C107654"><enum>(D)</enum><header>Aggregate limit</header><text>The maximum aggregate face amount of bonds which may be designated under this subsection by the Governor of a State shall not exceed $4,500,000,000.</text> </subparagraph><subparagraph id="HA807D3F2906C45E196BF6E80243B1218"><enum>(E)</enum><header>Additional requirements</header><text>The requirements of this subparagraph are met with respect to any advance refunding of a bond described in subparagraph (C) if—</text> <clause id="H1E8466DC012E45A6AF12E7C636BCBFFB"><enum>(i)</enum><text>no advance refundings of such bond would be allowed under this title on or after the applicable disaster date,</text> </clause><clause id="H9D1B4A0E49644849893D50B220E6939F"><enum>(ii)</enum><text>the advance refunding bond is the only other outstanding bond with respect to the refunded bond, and</text> </clause><clause id="HEB81FA8C713F4EBF97D7B09BF620DD16"><enum>(iii)</enum><text>the requirements of section 148 are met with respect to all bonds issued under this paragraph.</text> </clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H39E1FC815B0D4E96989534E873203975"><enum>(F)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="HAA6A2751A7FF49879547C39BC7F1CFB8"><enum>(i)</enum><header>Federally declared disaster; disaster area</header><text>The terms <term>federally declared disaster</term> and <term>disaster area</term> have the meanings given such terms under section 165(h)(3)(C).</text> </clause><clause id="HAED35D6790B644FD9BE1F763BF870DBF"><enum>(ii)</enum><header>Applicable disaster date</header><text>The term <term>applicable disaster date</term> means, with respect to any federally declared disaster, the date on which such federally declared disaster occurs.</text> </clause><clause id="H8918C24142364929BBF6790A76123AAC"><enum>(iii)</enum><header>Applicable State</header><text>The term <term>applicable State</term> means, with respect to any federally declared disaster, any State in which a portion of the disaster area is located.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section><section commented="no" id="HEC8CB7D0369D45F7B653CFE476997C33"><enum>114.</enum><header>Qualified disaster area recovery bonds</header> <subsection id="H8F82D28C06A44C268F56A9B0A089660C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart A of part IV of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 146 the following new section:</text> <quoted-block display-inline="no-display-inline" id="H58C578C91C5A4ADC904980415B3C060D" style="OLC"> <section id="H25C9C4A915254BA2963085100EA232BA"><enum>146A.</enum><header>Qualified disaster area recovery bonds</header> <subsection id="HD4EAC09C79164784A5838A146A233ED6"><enum>(a)</enum><header>In general</header><text>For purposes of this title, any qualified disaster area recovery bond shall—</text> <paragraph id="H5AD9078FE9954115888C640E58244A76"><enum>(1)</enum><text>be treated as an exempt facility bond, and</text> </paragraph><paragraph id="H961E0FAE700D4CCCA2AAE8ED4D6132E4"><enum>(2)</enum><text>not be subject to section 146.</text> </paragraph></subsection><subsection id="H50502326E8DA44AB9E9811A95FA2DCD8"><enum>(b)</enum><header>Qualified disaster area recovery bond</header><text>For purposes of this section, the term <term>qualified disaster area recovery bond</term> means any bond issued as part of an issue if—</text> <paragraph id="HB1690FBACB2446F187EC893861A45F2C"><enum>(1)</enum><text>95 percent or more of the net proceeds of such issue are to be used for qualified project costs,</text> </paragraph><paragraph id="H0333A2164C4A41E68B1E2D48AB00CD58"><enum>(2)</enum><text>such bond is issued by a State or any political subdivision thereof any part of which is in a qualified disaster area,</text> </paragraph><paragraph id="HE62E690A11384E4FAF9D05DDD7AF1FC2"><enum>(3)</enum><text>the Governor of the issuing State designates such bond for purposes of this section, and</text> </paragraph><paragraph id="H306C5A24355E4AA3B2277C2A87CD866E"><enum>(4)</enum><text>such bond is issued after the date of the enactment of this section and before January 1, 2016.</text> </paragraph></subsection><subsection commented="no" id="H3679B19740B040F3A9CC7DFA8A2D25C6"><enum>(c)</enum><header>Limitation on amount of bonds</header> <paragraph commented="no" id="H6CE8670699404ED7A02E197F6B506AD9"><enum>(1)</enum><header>In general</header><text>The maximum aggregate face amount of bonds which may be designated under this section by any State shall not exceed $10,000,000,000.</text> </paragraph><paragraph commented="no" id="H75096C18781A4A8BBA5FC96B8D1238AA"><enum>(2)</enum><header>Movable property</header><text display-inline="yes-display-inline">No bonds shall be issued which are to be used for movable fixtures and equipment.</text> </paragraph><paragraph commented="no" id="H63349C9BB0A944518189C3180F7916E2"><enum>(3)</enum><header>Treatment of current refunding bonds</header><text>Paragraph (1) shall not apply to any bond (or series of bonds) issued to refund a qualified disaster area recovery bond, if—</text> <subparagraph commented="no" id="H42704F51089B46CA9D489B1F7F69ECF0"><enum>(A)</enum><text>the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,</text> </subparagraph><subparagraph commented="no" id="HC971A1E6F56F4738A0D38A08520671E1"><enum>(B)</enum><text>the amount of the refunding bond does not exceed the outstanding amount of the refunded bond, and</text> </subparagraph><subparagraph commented="no" id="HC4471FCC141C4CE58DCEEA9ABC54EDE5"><enum>(C)</enum><text>the net proceeds of the refunding bond are used to redeem the refunded bond not later than 90 days after the date of the issuance of the refunding bond.</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">For purposes of subparagraph (A), average maturity shall be determined in accordance with section 147(b)(2)(A).</continuation-text></paragraph></subsection><subsection id="H459D1A3DEB214B2E8656FE145E38CDF5"><enum>(d)</enum><header>Qualified project costs</header><text>For purposes of this section, the term <term>qualified project costs</term> means the cost of acquisition, construction, reconstruction, and renovation of—</text> <paragraph commented="no" id="H60B7B2152BB340A29DE3FBE3657B8C3F"><enum>(1)</enum><text display-inline="yes-display-inline">residential rental property (as defined in section 142(d)),</text> </paragraph><paragraph id="H67A71118F03D41A0857B964DE39D615B"><enum>(2)</enum><text display-inline="yes-display-inline">nonresidential real property (including fixed improvements associated with such property),</text> </paragraph><paragraph id="HD96A295587B940D0AE3063AE7E971651"><enum>(3)</enum><text>a facility described in paragraph (2) or (3) of section 142(a), or</text> </paragraph><paragraph id="H7B193DAAEEE645E1898402C7EF6ACEAB"><enum>(4)</enum><text display-inline="yes-display-inline">public utility property (as defined in section 168(i)(10)),</text></paragraph><continuation-text continuation-text-level="subsection">which is located in a qualified disaster area and was damaged or destroyed by reason of a federally declared disaster.</continuation-text></subsection><subsection id="HECECBEFC91CE49BD90FE231B908F5F34"><enum>(e)</enum><header>Special rules</header><text>In applying this title to any qualified disaster area recovery bond, the following modifications shall apply:</text> <paragraph id="H606265E688EB44CAA72B9E808A951836"><enum>(1)</enum><text>Section 147(d) (relating to acquisition of existing property not permitted) shall be applied by substituting <quote>50 percent</quote> for <quote>15 percent</quote> each place it appears.</text> </paragraph><paragraph id="H290702B8CB44496D9471C2BF4F4069EE"><enum>(2)</enum><text>Section 148(f)(4)(C) (relating to exception from rebate for certain proceeds to be used to finance construction expenditures) shall apply to the available construction proceeds of bonds issued under this section. For purposes of the preceding sentence, the following spending requirements shall apply in lieu of the requirements in clause (ii) of such section:</text> <subparagraph id="H81C89C9E7C4546D5A8A5B4F5AD8E1D50"><enum>(A)</enum><text>40 percent of such available construction proceeds are spent for the governmental purposes of the issue within the 2-year period beginning on the date the bonds are issued,</text> </subparagraph><subparagraph id="HC6E85493607948A2A411EBBB4C5A5A0A"><enum>(B)</enum><text display-inline="yes-display-inline">60 percent of such proceeds are spent for such purposes within the 3-year period beginning on such date,</text> </subparagraph><subparagraph id="H651B3EF1EBDD4864BE5AB3F03189F13D"><enum>(C)</enum><text display-inline="yes-display-inline">80 percent of such proceeds are spent for such purposes within the 4-year period beginning on such date, and</text> </subparagraph><subparagraph id="HC07909F93A4C4D2E89A4838C41183C6E"><enum>(D)</enum><text display-inline="yes-display-inline">100 percent of such proceeds are spent for such purposes within the 5-year period beginning on such date.</text> </subparagraph></paragraph><paragraph id="H89BBC3ABFD494C788AE23265C1F25365"><enum>(3)</enum><text>Repayments of principal on financing provided by the issue—</text> <subparagraph id="H4B96780672DF409BB04C96E4B840044A"><enum>(A)</enum><text>may not be used to provide financing, and</text> </subparagraph><subparagraph id="H4D0CBF7976664F6BA4B73E3667F2210C"><enum>(B)</enum><text>must be used not later than the close of the 1st semiannual period beginning after the date of the repayment to redeem bonds which are part of such issue.</text></subparagraph><continuation-text continuation-text-level="paragraph">The requirement of subparagraph (B) shall be treated as met with respect to amounts received within 5 years after the date of issuance of the issue (or, in the case of a refunding bond, the date of issuance of the original bond) if such amounts are used by the close of such 5 years to redeem bonds which are part of such issue.</continuation-text></paragraph><paragraph id="HAE307E4E31BC447AA11BB453CA6B08FC"><enum>(4)</enum><text>Section 57(a)(5) shall not apply.</text> </paragraph></subsection><subsection id="H660D0D52F98D4079BD256F5CE25F4F5C"><enum>(f)</enum><header>Separate issue treatment of portions of an issue</header><text>This section shall not apply to the portion of an issue which (if issued as a separate issue) would be treated as a qualified bond or as a bond that is not a private activity bond (determined without regard to paragraph (1)), if the issuer elects to so treat such portion.</text> </subsection><subsection id="HFDDD71D9E00D4CF3BFDD8CBBA914289F"><enum>(g)</enum><header>Qualified disaster area; federally declared disaster</header> <paragraph id="HB63FB16E99584F299CDF336B1353D232"><enum>(1)</enum><header>Qualified disaster area</header><text display-inline="yes-display-inline">The term <term>qualified disaster area</term> means any area determined to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of a federally declared disaster occurring during the period beginning after December 31, 2011, and before January 1, 2015.</text> </paragraph><paragraph id="HA6D62CE11AF84F2EB04D540DD013782C"><enum>(2)</enum><header>Federally declared disaster</header><text display-inline="yes-display-inline">The term <term>federally declared disaster</term> has the meaning given to such term under section 165(h)(3)(C).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H5124ADECC6144B3987A4F837246808E8"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 146 the following new item:</text> <quoted-block id="HFCB7AF8857CA465C8EA2840AD2142CCF" style="OLC"> <toc> <toc-entry idref="H25C9C4A915254BA2963085100EA232BA" level="section">Sec. 146A. Qualified disaster area recovery bonds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H0D24EC5D63204E5AB155892A7F120CBB"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.</text> </subsection></section><section commented="no" id="H06B02076A93548278AAA07D2A6FF843A"><enum>115.</enum><header>Additional low-income housing credit allocations</header> <subsection id="H49A6D69185B346E987A0473E9EEAA5F5"><enum>(a)</enum><header>In general</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(h)</external-xref> of the Internal Revenue Code of 1986 (relating to limitation on aggregate credit allowable with respect to projects located in a State) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H5FFE70ACBE5F4CBBB2C61D61183E8BB4" style="OLC"> <subparagraph id="H053DAFB6F4954CEFAF5BB5E3FD44D5FC"><enum>(J)</enum><header>Increase in State housing credit for States damaged by natural disasters</header> <clause id="H3C71BE68F9CB4AB28134608CF9631C09"><enum>(i)</enum><header>In general</header><text>In the case of calendar year 2014, the State housing credit ceiling of each State any portion of which includes any portion of a qualifying disaster area shall be increased by so much of the aggregate housing credit dollar amount as does not exceed the applicable limitation allocated by the State housing credit agency of such State for such calendar year to buildings located in qualifying disaster areas.</text> </clause><clause id="H6A97729EB4774ACD9856249E2AC0A11E"><enum>(ii)</enum><header>Applicable limitation</header><text>For purposes of clause (i), the applicable limitation is the greater of—</text> <subclause id="HB7E1A6F948E547678AF500F73993CF14"><enum>(I)</enum><text>$8 multiplied by the population of the qualifying disaster areas in such State, or</text> </subclause><subclause id="H06A5B539907940779C340A7DDEED40DB"><enum>(II)</enum><text>50 percent of the State housing credit ceiling (determined without regard to this subparagraph) for 2013.</text> </subclause></clause><clause id="HE0F3212082E54EF8AE184369429B5691"><enum>(iii)</enum><header>Applicable percentage</header><text>For purposes of this section, the applicable percentage with respect to any building to which amounts allocated under clause (i) shall be determined under subsection (b)(2), except that subparagraph (A) thereof shall be applied by substituting <quote>January 1, 2015</quote> for <quote>January 1, 2014</quote>.</text> </clause><clause id="HD4A8A408294C4DB6A3E3C41350169B37"><enum>(iv)</enum><header>Allocations treated as made first from additional allocation amount for purposes of determining carryover</header><text>For purposes of determining the unused State housing credit ceiling under subparagraph (C) for any calendar year, any increase in the State housing credit ceiling under clause (i) shall be treated as an amount described in clause (ii) of such subparagraph.</text> </clause><clause id="H00658A801E644266A121A63FCE5983C8"><enum>(v)</enum><header>Qualifying disaster area</header><text>For purposes of this subparagraph, the term <term>qualifying federally declared disaster area</term> means—</text> <subclause id="H23F9D2B67F1B4771A99DF13F0BB6F6BD"><enum>(I)</enum><text>each county which is determined to warrant individual or individual and public assistance from the Federal Government under a qualifying natural disaster declaration described in clause (vi)(I), and</text> </subclause><subclause id="H593AB9A397DB426687A40A167AA99922"><enum>(II)</enum><text>each county not described in subclause (I) which is included in the geographical area covered by a qualifying natural disaster declaration described in subclause (II) or (III) of clause (vi).</text> </subclause></clause><clause id="HAA3F40276270496F88C6E22AB09AB36A"><enum>(vi)</enum><header>Qualifying natural disaster declaration</header><text>For purposes of clause (v), the term <term>qualifying natural disaster declaration</term> means—</text> <subclause id="HA23D290CACA74A498858020EABBACE0D"><enum>(I)</enum><text>a federally declared disaster (as defined in section 165(h)(3)(C)) occurring during the period beginning after December 31, 2011, and before January 1, 2015,</text> </subclause><subclause id="H5DCA3C13232A4EF9B95E2C4F880E4FC0"><enum>(II)</enum><text>a natural disaster declared by the Secretary of Agriculture in 2011 due to damaging weather and other conditions relating to Hurricane Irene or Tropical Storm Lee under section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)), or</text> </subclause><subclause id="HC08FBFC1E62D44AB8A60F4F5792D7B21"><enum>(III)</enum><text>a major disaster or emergency designated by the President in 2011 due to damaging weather and other conditions relating to Hurricane Irene or Tropical Storm Lee under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HF596158BC7BF426DB974C434A7D3302A"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text> </subsection></section><section commented="no" id="H577CD8F497DA4DEF8811F01408B4CAE9"><enum>116.</enum><header>Facilitation of transfer of water leasing and water by mutual ditch or irrigation companies in disaster areas</header> <subsection commented="no" id="HF2A6353A07A6429783FFF26BFBB7F82F"><enum>(a)</enum><header>In general</header><text>Paragraph (12) of <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block id="HE231C0A00E404F08A61A5CD9C0E1225E" style="OLC"> <subparagraph commented="no" id="HD37D6B3740CF420CBE1159CAD99F60A8"><enum>(I)</enum><header>Treatment of mutual ditch or irrigation companies in certain disaster areas</header> <clause commented="no" id="H44A4E3E88B3045458A74D665DF3C8796"><enum>(i)</enum><header>In general</header><text>In the case of a qualified mutual ditch or irrigation company or like organization, subparagraph (A) shall be applied without taking into account any income received or accrued during the applicable period—</text> <subclause commented="no" id="H29683555AF2C4E5B93E28DF5A1AB29E0"><enum>(I)</enum><text>from the sale, lease, or exchange of fee or other interests in real property, including interests in water,</text> </subclause><subclause commented="no" id="H333AE11E471F4ADB94D5F99558187D45"><enum>(II)</enum><text>from the sale or exchange of stock in a mutual ditch or irrigation company or like organization or contract rights for the delivery or use of water,</text> </subclause><subclause commented="no" id="H03D84548AF244F9DA71D1DEDA7BB5BD9"><enum>(III)</enum><text>from the investment of proceeds from sales, leases, or exchanges under subclauses (I) and (II), or</text> </subclause><subclause commented="no" id="H26B5E1B2486541F2A341DA686E4707D1"><enum>(IV)</enum><text>from the United States, or a State or local government, resulting from the federally declared disaster,</text></subclause><continuation-text commented="no" continuation-text-level="clause">except that any income received under subclause (I), (II), (III), or (IV) which is distributed or expended for expenses (other than for operations, maintenance, and capital improvements) of the qualified mutual ditch or irrigation company or like organization shall be treated as nonmember income in the year in which it is distributed or expended.</continuation-text></clause><clause commented="no" id="HD902F5D48F884126A37818361DFF78D7"><enum>(ii)</enum><header>Qualified mutual ditch or irrigation company or like organization</header><text>For purposes of this paragraph—</text> <subclause commented="no" id="H174A65E61F2A431384F920338DC18FFE"><enum>(I)</enum><header>In general</header><text>The term <term>qualified mutual ditch or irrigation company or like organization</term> means any mutual ditch or irrigation company or like organization that diverted, delivered, transported, stored, or used its water for agricultural irrigation purposes on its own or through its shareholders in a qualified disaster area during 2012, 2013, or 2014.</text> </subclause><subclause commented="no" id="HE1FBF57B67CC429B8FDE6407E77D5020"><enum>(II)</enum><header>Qualified asset</header><text>The term <term>qualified asset</term> means any real property or tangible personal property used in the mutual ditch or irrigation company's (or like organization's) system.</text> </subclause><subclause commented="no" id="H5B98E604411544E2ACBE5E6CA70B26C6"><enum>(III)</enum><header>Multiple areas</header><text>Under regulations, if the qualified assets of any mutual ditch or irrigation company or like organization are located in more than 1 qualified disaster area, all such areas shall be treated as 1 area and if more than 1 federally declared disaster is involved, the date on which the last of such disasters occurred shall be the date used for purposes of this paragraph.</text> </subclause></clause><clause commented="no" id="HD2F42C6B065E449D946435E8A54D664A"><enum>(iii)</enum><header>Applicable period</header><text>For purposes of this paragraph, the term <term>applicable period</term> means the taxable year in which the federally declared disaster occurred and the 5 following taxable years.</text> </clause><clause commented="no" id="H7F5C6E3E40484EBEAA20E4F1ED0CEB53"><enum>(iv)</enum><header>Other definitions</header> <subclause id="HF6BA27ECEA694FF4935CA6A5D7862867"><enum>(I)</enum><header>Qualified disaster area</header><text display-inline="yes-display-inline">The term <term>qualified disaster area</term> means any area determined to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of a federally declared disaster occurring during the period beginning on January 1, 2012, and ending on December 31, 2014.</text> </subclause><subclause id="HC093FAE4149B47F8907868E7B4CBCA48"><enum>(II)</enum><header>Federally declared disaster</header><text display-inline="yes-display-inline">The term <term>federally declared disaster</term> has the meaning given to such term under section 165(h)(3)(C).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H6B3E93137B6042E1A35D568D0CDE0EB7"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to taxable years ending after December 31, 2011.</text> </subsection></section><enum>II</enum><header>Other disaster tax relief provisions</header> <section id="HD6646915F760475597D50656CCE8CFA9"><enum>201.</enum><header>Exclusion for disaster mitigation payments received from State and local governments</header> <subsection commented="no" id="H29C5742B8C1041F0874C994EE6899EA2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/139">section 139(g)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>, or any other amount which is paid by a State or local government or agency or instrumentality thereof,</quote> after <quote>(as in effect on such date)</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE20C37D3ACBD44929913BE124C6801B6"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to payments received after the date of the enactment of this Act.</text> </subsection></section><section id="HC25018531A8F4980B271F71703B24EE1"><enum>202.</enum><header>Natural disaster funds</header> <subsection id="H11D87475DA874AB484EF5743DDF0CF33"><enum>(a)</enum><header>Natural disaster fund</header><text>Subpart C of part II of subchapter E of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 468B the following new section:</text> <quoted-block display-inline="no-display-inline" id="H95741E9C665A4DA38E683A3E18C9DFC9" style="OLC"> <section id="H8B2014943B3C45C6A668FCE9CD45D4F8"><enum>468C.</enum><header>Special rules for natural disaster funds</header> <subsection id="HD967DA5605344EFFB9A4ECD291A29009"><enum>(a)</enum><header>In general</header><text>If a qualified taxpayer elects the application of this section, there shall be allowed as a deduction for any taxable year the amount of payments made by the taxpayer to a natural disaster fund during such taxable year.</text> </subsection><subsection id="HCFC5F84AFABE4ADBA5660DE4854CD855"><enum>(b)</enum><header>Natural disaster fund</header><text>The term <term>natural disaster fund</term> means a fund meeting the following requirements:</text> <paragraph id="HE1734E48802E4B779695FA6210185CE7"><enum>(1)</enum><header>Designation</header><text>The taxpayer designates—</text> <subparagraph id="H689E168F582E40D1A6737C6BD2B5EA37"><enum>(A)</enum><text>the fund as a natural disaster fund in the manner prescribed by the Secretary, and</text> </subparagraph><subparagraph id="H9CA502CA539642AF9CBDAB5A1808CD25"><enum>(B)</enum><text>the line or lines of business to which the fund applies.</text> </subparagraph></paragraph><paragraph id="H898CC3A259494CC7855E28B8C317E132"><enum>(2)</enum><header>Segregation</header><text>The assets of the fund are segregated from other assets of the taxpayer.</text> </paragraph><paragraph id="HEBD28D6F7D3C4D4CB383CEFE48381AEE"><enum>(3)</enum><header>Investments</header> <subparagraph id="H79FC20BD57BB4F3E9685119769070FA0"><enum>(A)</enum><text>The assets of the fund are maintained in one or more qualified accounts and are invested only in—</text> <clause id="HA67D7C317D5A495F852EB091F39D4DFB"><enum>(i)</enum><text>deposits with banks whose deposits are insured subject to applicable limits by the Federal Deposit Insurance Corporation, or</text> </clause><clause id="H6F17C9C51EC441F8A1515BF882D807F3"><enum>(ii)</enum><text>in stock or other securities in which the fund would be permitted to invest if it were a capital construction fund subject to the investment limitations of paragraphs (2) and (3) of section 7518(b)(2).</text> </clause></subparagraph><subparagraph id="H579CB4C45D3141B2985DA59F3597C42D"><enum>(B)</enum><text>All investment earnings (including gains and losses) from investments of the fund become part of the fund.</text> </subparagraph></paragraph><paragraph id="HD51AEEE886FB4729B8EF8F37D089885F"><enum>(4)</enum><header>Contributions to the fund</header><text>The fund does not accept any deposits (or other amounts) other than cash payments with respect to which a deduction is allowable under subsection (a) and earnings (including gains and losses) from fund investments.</text> </paragraph><paragraph id="H0B05EB6653394BF28B23671F65EB546B"><enum>(5)</enum><header>Purpose</header><text>The fund is established and maintained for the purposes of covering costs, expenses, and losses (including business interruption losses) resulting from a Federally declared natural disaster to the extent such costs are not covered by insurance.</text> </paragraph><paragraph id="H088490C08656467598D99BF6601D4174"><enum>(6)</enum><header>Maximum balance</header><text>The balance of the fund does not exceed the lesser of—</text> <subparagraph id="H6C99E074BA414D8CB7A0F457E3C8FE4A"><enum>(A)</enum><text>the sum of—</text> <clause id="H97F787D298D5476AA1044888768FE965"><enum>(i)</enum><text>150 percent of the maximum deductible, and</text> </clause><clause id="HC6EDF2457016419DBF2CB85CDCAA2F52"><enum>(ii)</enum><text>100 percent of the maximum co-insurance (to the extent not taken into account in clause (i)),</text></clause><continuation-text continuation-text-level="subparagraph">that, in the case of a Federally declared natural disaster resulting in losses, the taxpayer could be expected to pay with respect to property and business interruption insurance maintained by the taxpayer for the line of business to which the fund applies and that would cover losses resulting from a Federally declared natural disaster, and</continuation-text></subparagraph><subparagraph id="H5880479483E94991BFB1AA8C69B4155E"><enum>(B)</enum><text>the maximum loss under any insurance coverage that the taxpayer could reasonably expect to occur for the line of business in the case of a severe natural disaster.</text> </subparagraph></paragraph><paragraph id="HE734F0EC19F249138CB7262BF0A61BC7"><enum>(7)</enum><header>Financial statements</header><text>The fund or the balance of the fund is recorded in the taxpayer’s financial statements in accordance with generally accepted accounting principles and not as a current asset and the footnotes to the taxpayer’s financial statements include a short description of the fund and its purposes.</text> </paragraph><paragraph id="H60791F3DA93447F7BD75C533F2F517C5"><enum>(8)</enum><header>Insurance</header><text>The taxpayer property insurance maintained by the qualified taxpayer applies to 75 percent or more of the property used—</text> <subparagraph id="HEC5B6A07E7D9469DB53B38E30E006FE9"><enum>(A)</enum><text>in the qualified taxpayer’s line of business to which the fund relates, and</text> </subparagraph><subparagraph id="HED0218C500AE4E319DACE8E0187B29CC"><enum>(B)</enum><text>in the United States.</text> </subparagraph></paragraph></subsection><subsection id="HB5AF27EB8E2541D0AAA1B224BA2655D5"><enum>(c)</enum><header>Qualified taxpayer</header><text>For purposes of this section, the term <term>qualified taxpayer</term> means any taxpayer that—</text> <paragraph id="H1D89B97EF57C4C1191397701A3FD5F7F"><enum>(1)</enum><text>actively conducts a trade or business, and</text> </paragraph><paragraph id="H07450006F59D472F844E29CFB006E2B9"><enum>(2)</enum><text>maintains property insurance with respect to such trade or business that insures against losses in natural disasters.</text> </paragraph></subsection><subsection id="H3825FC81E6EA44F6A92577168B6DA608"><enum>(d)</enum><header>Failure To meet requirements</header><text>If a fund that was a natural disaster fund ceases to meet any of the requirements of subsection (b) or a taxpayer who has a natural disaster fund ceases to meet the requirement of subsection (c), the entire balance of the fund shall be deemed distributed in a nonqualified distribution at the time the fund ceases to meet such requirements.</text> </subsection><subsection id="H8D18F7E7C0A04F809AEF7E82949899E5"><enum>(e)</enum><header>Taxation of fund</header> <paragraph id="HCC7108F652924032915EF9E050F7ADB4"><enum>(1)</enum><header>In general</header><text>The earnings (including gains and losses) from the investment and reinvestment of amounts held in the fund shall not be taken into account in determining the gross income of the taxpayer that owns the fund.</text> </paragraph><paragraph id="HE868ACCA5BA74883A37DFA83917E7919"><enum>(2)</enum><header>Not a separate taxpayer</header><text>A natural disaster fund shall not be considered a separate taxpayer for purposes of this subtitle.</text> </paragraph></subsection><subsection id="H13009B09F78545A0834847575ADDB98A"><enum>(f)</enum><header>Taxation of distributions from the fund</header> <paragraph id="HD3420395E0FB4939BEB5C9EAC342FD30"><enum>(1)</enum><header>Qualified distributions</header><text>For purposes of this chapter, qualified distributions shall be treated in the same manner as proceeds from property or business interruption insurance.</text> </paragraph><paragraph id="H19602EE2FEBA4194ADEF0B342F14BF7E"><enum>(2)</enum><header>Nonqualified distributions</header> <subparagraph id="H3272A352982A4DE7A2218AB4E455897C"><enum>(A)</enum><header>In general</header><text>In the case of any taxable year for which there is a nonqualified distribution—</text> <clause id="H8A8A00FCC08C4DD9B4B4926E0F4AE4FD"><enum>(i)</enum><text>such nonqualified distributions shall be excluded from the gross income of the taxpayer, and</text> </clause><clause id="HC31EC91EEBDB402081E5221875435EA8"><enum>(ii)</enum><text>the tax imposed by this chapter (determined without regard to this subsection) shall be increased by the product of the amount of such nonqualified distribution and the highest rate of tax specified in section 1 (section 11 in the case of a corporation).</text> </clause></subparagraph><subparagraph id="H6445A3A2767E4A3D9DDB0FD3D2AB6F90"><enum>(B)</enum><header>Tax benefit rule; coordination with deduction for net operating losses</header><text>Rules similar to the rules of subparagraphs (B) and (C) of section 7518(g)(6) shall apply for purposes of this paragraph.</text> </subparagraph></paragraph><paragraph id="HA23B3E6E414848D58E6153F32261D1EC"><enum>(3)</enum><header>Additional tax</header><text>The tax imposed by this chapter for any taxable year on any taxpayer that a owns natural disaster fund shall be increased by the greater of—</text> <subparagraph id="H84E0B190BD30494FB50C16452E01DC6D"><enum>(A)</enum><text>20 percent of the amount of any non-qualified distributions from the fund in the taxable year, and</text> </subparagraph><subparagraph id="H6245D83A28754232910FA67BD266757F"><enum>(B)</enum><text>an amount equal to interest, at the underpayment rate established under section 6621, on the nonqualified distribution from the time the amount is added to the fund to the time the amount is distributed.</text> </subparagraph></paragraph><paragraph id="HF94974E32FB2447482CA24E272744DC1"><enum>(4)</enum><header>Interest calculation</header><text>For purposes of calculating interest under paragraph (3)(B)—</text> <subparagraph id="H45DF47DE74A84296B42AF01E44315EDD"><enum>(A)</enum><text>all investment earnings (including gains or losses) in taxable year shall be treated as added to the fund on the last day of the taxable year, and</text> </subparagraph><subparagraph id="H15A1247420DA4D7499879A6461FCD156"><enum>(B)</enum><text>amounts distributed from the fund shall be treated as distributed on a first-in, first-out basis.</text> </subparagraph></paragraph></subsection><subsection id="HAF529A35C2D3465DBC6C07862B1BB6BF"><enum>(g)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph id="H731A0AAA42C34FB6AAFA965C6B48F64D"><enum>(1)</enum><header>Federally declared natural disaster</header><text>The term <term>Federally declared natural disaster</term> means a natural disaster that is determined by Presidential declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act to warrant individual or individual and public assistance under such Act.</text> </paragraph><paragraph id="H2C6EFBD6A28F40B590BFCEB41B2D337B"><enum>(2)</enum><header>Nonqualified distribution</header><text>The term <term>nonqualified distribution</term> means a distribution from a natural disaster fund other than a qualified distribution.</text> </paragraph><paragraph id="H0ADA068081AD494A8B1EA1B0371BC92F"><enum>(3)</enum><header>Qualified account</header><text>The term <term>qualified account</term> means an account with a bank (as defined in section 581) or a brokerage account but only if the investments of such accounts are limited to those permitted by subsection (b)(3) and no investments are made in a related person (as defined in section 465(b)(3)(C)) to the taxpayer.</text> </paragraph><paragraph id="H0D1DFB3AC6814DCCAF1C419F7B198D00"><enum>(4)</enum><header>Qualified distribution</header> <subparagraph id="H8EB54831BFA247E6A3CF4F5B77C777F9"><enum>(A)</enum><header>In general</header><text>The term <term>qualified distribution</term> means with respect to natural disaster fund an amount equal to the excess of—</text> <clause id="H3DFEAAD5742D48D48F7640B57E8B626C"><enum>(i)</enum><text>costs, expenses, and losses (including losses of a type reimbursable by proceeds of business interruption insurance) incurred by the taxpayer as a result of the Federally declared natural disaster with respect to the line or lines of business for which the fund was designated, over</text> </clause><clause id="H3F836EE1A8044D77ADD91072390A6675"><enum>(ii)</enum><text>the proceeds of property and business interruption insurance paid for the benefit of the taxpayer with respect to costs, expenses, and losses described in clause (i).</text> </clause></subparagraph><subparagraph id="H3B9083B8BD1244889025B3FF91959908"><enum>(B)</enum><header>Limitation</header><text>A distribution from a natural disaster fund shall not be treated as a qualified distribution if such distribution is allocated to a Federally declared natural disaster occurring more than 3 years before the date of such distribution.</text> </subparagraph></paragraph></subsection><subsection id="H981DEC515F4A4D7C8373CE3AE4E7AD96"><enum>(h)</enum><header>Special rules</header><text>For purposes of this section—</text> <paragraph id="H8577820FA9A640839C2C79D39635906A"><enum>(1)</enum><header>No double counting</header><text>Any portion of any deductible or coinsurance taken into account under subsection (b)(6) in determining the maximum balance for a natural disaster fund shall not be taken into account in determining the maximum balance for another natural disaster fund.</text> </paragraph><paragraph id="H5E48E5C9F2A1402F86524980FBE8B540"><enum>(2)</enum><header>Excess balance</header> <subparagraph id="HF204B112FA484953808254A47C9F0925"><enum>(A)</enum><header>In general</header><text>If the balance of a natural disaster fund exceeds the maximum balance permitted by subsection (b)(6) by reason of investment earnings or a reduction in the maximum balance, the account shall not cease to be a natural disaster fund as the result of exceeding such limit if the excess is distributed within 120 days of the date that such excess first occurred.</text> </subparagraph><subparagraph id="H69409DCB65D349659C01E8589DC40D26"><enum>(B)</enum><header>Treatment of distributions of excess balance</header><text>In the case of any distribution of the excess balance of a natural disaster fund within 120 days of the date that such excess first occurred—</text> <clause id="H7F792DA04B9F403EA7B9C0DDE25EB87B"><enum>(i)</enum><text>paragraphs (2) and (3) of subsection (f) shall not apply to the distribution of such excess if distributed within such period, and</text> </clause><clause id="H52C7238FB6B5456FBEF2AC19CAB24D3C"><enum>(ii)</enum><text>the amount of such distribution shall be included in the gross income of the taxpayer in the year such distribution was made.</text> </clause></subparagraph><subparagraph id="H9610DAD9C25C4E69910CB560CA10094A"><enum>(C)</enum><header>Anti-abuse rule</header><text>Subparagraph (B) shall not apply in the case of any reduction in the maximum balance resulting from any action of the taxpayer the primary purpose of which was to reduce the maximum balance to enable a distribution that would not be subject to the maximum tax rate calculation or the additional tax.</text> </subparagraph></paragraph><paragraph id="H7A69ACA8CCBC413EAC45824DD5B28412"><enum>(3)</enum><header>Certain asset acquisitions</header><text>The transfer of a natural disaster fund (or the portion of a natural disaster fund) from one person to another person shall not constitute a nonqualified distribution if—</text> <subparagraph id="H0B3436640A9043CCAFCE62A53474AFCB"><enum>(A)</enum><text>such transfer is part of a transaction—</text> <clause id="H0074C3CECDE141BABDA9A2EA824763AF"><enum>(i)</enum><text>to which section 381 applies,</text> </clause><clause id="H81F75966CB554FC59C8DF0FE50FA3F38"><enum>(ii)</enum><text>the transferee acquires substantially all of the assets of the transferor used in the line or lines of business for which the fund was designated,</text> </clause><clause id="H335D311E515040F5A05B604251980EA3"><enum>(iii)</enum><text>the transferee acquires substantially all of the assets of the transferor used in one, but not all, of the lines of business for which the fund was designated, or</text> </clause><clause id="H6255E1AAA33C4FE1B39972CAA74DE53F"><enum>(iv)</enum><text>the transferee acquires substantially all of the transferor’s assets located in a geographical area and used in a line of business for which the fund was designated, and</text> </clause></subparagraph><subparagraph id="H9662D211EF3B4EBEA461C4A483435828"><enum>(B)</enum><text>the transferee elects to treat the acquired natural disaster fund (or portion thereof) as a natural disaster fund for the line of business for which the transferor had previously designated the fund and as a continuation of the fund (or pro rata portion thereof) for purposes of determining the additional tax imposed by subsection (f)(4).</text> </subparagraph></paragraph></subsection><subsection id="HD254A562FEF44B40898F6F93C0D28A91"><enum>(i)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the provisions of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H73FC94B8749D46FAB5CE121F4A8CFB36"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart C of part II of subchapter E of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 468B the following new item:</text> <quoted-block display-inline="no-display-inline" id="HBC199C92A9EC4C588AAD340FE1C32675" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 468C. Special rules for natural disaster funds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id48E97D3F194D466AA251E5D1EA22D3F4"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2014.</text></subsection></section>