[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3215 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 3215

   To amend the Internal Revenue Code of 1986 to allow penalty-free 
 distributions from qualified retirement plans of individuals residing 
  in Presidentially declared disaster areas and to allow relief from 
 certain limitations on the deductibility of casualty losses sustained 
                        in such disaster areas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 3, 1999

  Mr. Sisisky (for himself, Mr. Pickett, Mr. Scott, and Mr. Bateman) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow penalty-free 
 distributions from qualified retirement plans of individuals residing 
  in Presidentially declared disaster areas and to allow relief from 
 certain limitations on the deductibility of casualty losses sustained 
                        in such disaster areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. PENALTY-FREE DISTRIBUTIONS FROM QUALIFIED RETIREMENT PLANS 
              OF INDIVIDUALS RESIDING IN PRESIDENTIALLY DECLARED 
              DISASTER AREAS.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 (relating to exceptions to 10-percent additional tax on early 
distributions) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Distributions for disaster-related 
                expenses.--Distributions which are qualified disaster-
                related distributions.''.
    (b) Qualified Disaster-Related Distributions.--Section 72(t) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(9) Qualified disaster-related distributions.--For 
        purposes of paragraph (2)(G)--
                    ``(A) In general.--The term `qualified disaster-
                related distribution' means any payment or distribution 
                received by an individual who was residing in a 
                disaster area on the date of the determination referred 
                to in subparagraph (B) and who owned property that was 
                damaged in the disaster covered by the determination, 
                to the extent that the payment or distribution is used 
                by such individual within 90 days of the payment or 
                distribution for purposes of repairing or replacing the 
                damaged property. Such term shall only include any 
                payment or distribution which is made during the 1-year 
                period beginning on the date of the determination 
                referred to in subparagraph (B).
                    ``(B) Disaster area.--The term `disaster area' 
                means an area determined by the President to warrant 
                assistance by the Federal Government under the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments and distributions received after July 31, 1999, by 
individuals residing in areas warranting assistance as determined by 
the President after such date.

SEC. 2. CASUALTY LOSS RELIEF.

    (a) Casualty Loss Deduction for Disaster Loss Allowed Whether or 
Not It Exceeds 10 Percent of Adjusted Gross Income.--Subsection (i) of 
section 165 of the Internal Revenue Code of 1986 (relating to disaster 
losses) is amended by adding at the end the following new paragraph:
            ``(5) Adjusted gross income threshold not to apply.--
        Subsection (h)(2) shall not apply to any loss described in 
        paragraph (1), and any such loss shall not be taken into 
        account under that subsection in determining the amount of any 
        personal casualty loss for a taxable year.''.
    (b) Casualty Loss Deduction for Disaster Loss Allowed Whether or 
Not Taxpayer Itemizes Other Deductions.--Subsection (a) of section 62 
of such Code (defining adjusted gross income) is amended by inserting 
after paragraph (17) the following new paragraph:
            ``(18) Disaster losses.--The deduction allowed by section 
        165 for any loss attributable to a disaster occurring in an 
        area subsequently determined by the President to warrant 
        assistance by the Federal Government under the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to losses sustained after July 31, 1999, by individuals residing 
in areas warranting assistance as determined by the President after 
such date.
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