<enum>I</enum><header>General Tax Relief Provisions</header> <section id="H5790506949234AFE00634B00D66D02D6" section-type="subsequent-section" display-inline="no-display-inline"><enum>101.</enum><header>Extension of replacement period for nonrecognition of gain</header><text display-inline="no-display-inline">Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/1033">section 1033(a)(2)(B)</external-xref> of the Internal Revenue Code of 1986 shall be applied by substituting <quote>5 years</quote> for <quote>2 years</quote> with respect to property which—</text> <paragraph id="HA30CDA65EC3946E58E6E0900AE755066"><enum>(1)</enum><text display-inline="yes-display-inline">is located in an area determined by the President 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 Hurricane Katrina, and</text></paragraph> <paragraph id="HD8CB8FC83FC14C2A9189917451B7FA73"><enum>(2)</enum><text>is compulsorily or involuntarily converted as a result of such hurricane, </text></paragraph><continuation-text continuation-text-level="subsection">but only if substantially all of the use of the replacement property is located in any such area.</continuation-text></section> <section id="H921D5A0D3ABB459EBD4D2149995D2E38" section-type="subsequent-section" display-inline="no-display-inline"><enum>102.</enum><header>Suspension of limitations on charitable contributions for relief efforts related to Hurricane Katrina</header> <subsection id="H1471A90C356040C3971B689E392BC6FB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in subsection (b), qualified disaster contributions shall not be taken into account for purposes of subsections (b) and (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170</external-xref> of the Internal Revenue Code of 1986.</text></subsection> <subsection id="H63061CE5E37F4ADDB3A1C77CAB00EA91"><enum>(b)</enum><header>Treatment of excess contributions</header><text>For purposes of section 170 of such Code—</text> <paragraph id="H04ABB83A585E4EF7935EDC464816C719"><enum>(1)</enum><header>Individuals</header><text>In the case of an individual—</text> <subparagraph id="H4CA1D5DB810E45AF957604809DA4E370"><enum>(A)</enum><header>Limitation</header><text>Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base (as defined in paragraph (1) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.</text></subparagraph> <subparagraph id="HF0DBB0932A074B27A74DB48776566166"><enum>(B)</enum><header>Carryover</header><text display-inline="yes-display-inline">If the aggregate amount of qualified disaster contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of subparagraph (A), such excess shall be added to the excess described in the portion of subparagraph (A) of such section which precedes clause (i) thereof for purposes of applying such section.</text></subparagraph></paragraph> <paragraph id="H56532AECD6BA4EAC88E116997EDB9CFD"><enum>(2)</enum><header>Corporations</header><text>In the case of a corporation—</text> <subparagraph id="H2DE415CB79514E018B537B402BB1D5C4"><enum>(A)</enum><header>Limitation</header><text>Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.</text></subparagraph> <subparagraph id="H1AC41CB5F8294868BF90F128F0F08723"><enum>(B)</enum><header>Carryover</header><text>Rules similar to the rules of paragraph (1)(B) shall apply for purposes of this paragraph.</text></subparagraph></paragraph></subsection> <subsection id="HA32A77A20738475E8307C04F3BB8F1C9" display-inline="no-display-inline"><enum>(c)</enum><header>Exception to overall limitation on itemized deductions</header><text>So much of any deduction allowed under section 170 of such Code as does not exceed the qualified disaster contributions made during the taxable year shall not be treated as an itemized deduction for purposes of section 68 of such Code.</text></subsection> <subsection id="H0DA35212DC544D98A48175E892EF6D43"><enum>(d)</enum><header>Qualified disaster contributions</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified disaster contribution</quote> means any charitable contribution (as defined in section 170(c) of such Code)—</text> <paragraph id="H82485DBF814749C0A72616183CB72ED"><enum>(1)</enum><text>made during the period beginning on August 28, 2005, and ending on December 31, 2005, in cash to an organization described in section 170(b)(1)(A) of such Code (other than an organization described in section 509(a)(3) of such Code) for relief efforts related to Hurricane Katrina, and</text></paragraph> <paragraph id="H6CDF046A74DA4F7CAC386EF4218DB008"><enum>(2)</enum><text>with respect to which the taxpayer has elected the application of this section.</text></paragraph><continuation-text continuation-text-level="subsection">In the case of a partnership or S corporation, the election under paragraph (2) shall be made separately by each partner or shareholder. </continuation-text></subsection></section> <section id="HE8CC6EE6C40A479F90B64D3C6962C685" section-type="subsequent-section" display-inline="no-display-inline"><enum>103.</enum><header>Mileage rate for charitable purposes related to Hurricane Katrina</header> <subsection id="H620BB18DB32F4D9C9F9634C7157205D8"><enum>(a)</enum><header>Mileage rate for charitable purposes related to hurricane Katrina</header><text display-inline="yes-display-inline">Notwithstanding subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170</external-xref> of the Internal Revenue Code of 1986, in the case of the use of a vehicle described in subsection (f)(12)(E)(i) of such section for provision of relief related to Hurricane Katrina, the standard mileage rate for purposes of such section shall be 70 percent of the standard mileage rate for business purposes prescribed by the Secretary for purposes of chapter 1 of such Code which is in effect on the date of the contribution.</text></subsection> <subsection id="H321CA64278444E20B11106E728B909B0"><enum>(b)</enum><header>Application</header><text>Subsection (a) shall apply only with respect to contributions made before January 1, 2007.</text></subsection></section> <section id="HC749AC44B0F248BF9FD5BEE4DBB7F9C1" section-type="subsequent-section" commented="no" display-inline="no-display-inline"><enum>104.</enum><header>Exclusion of certain cancellations of indebtedness</header> <subsection id="H93D8F0E1332D411B84CE45577DB763B9" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code of 1986, gross income shall not include any amount which (but for this section) would be includible in gross income by reason of the discharge (in whole or in part) of qualified nonbusiness debt of a qualified individual by an applicable entity (as defined in section 6050P(c)).</text></subsection> <subsection id="H6ED9A03DBE0F44088151906E06FD00B4"><enum>(b)</enum><header>Qualified nonbusiness debt</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified nonbusiness debt</quote> means any indebtedness other than indebtedness incurred in connection with a trade or business.</text></subsection> <subsection id="H1502CD1A1CC14B36009D10E7F85DAE19"><enum>(c)</enum><header>Qualified individual</header><text>For purposes of this section, the term <quote>qualified individual</quote> means any natural person who was a resident (as of August 28, 2005) of, or who owned real property (as of the date of such discharge) in, any area which is determined by the President 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 Hurricane Katrina. </text></subsection> <subsection id="H99773C7794E4405785A9AE39B508B3E9" commented="no"><enum>(d)</enum><header>Exception for real property outside disaster area</header><text>Subsection (a) shall not apply to any discharge of indebtedness to the extent that real property constituting security for such indebtedness is located outside of the area described in subsection (c).</text></subsection> <subsection id="H6DCF77F3E38040F991D968CA58A468B4"><enum>(e)</enum><header>Denial of double benefit</header><text>The amount excluded from gross income under subsection (a) shall be applied to reduce the tax attributes of the taxpayer as provided in <external-xref legal-doc="usc" parsable-cite="usc/26/108">section 108(b)</external-xref> of the Internal Revenue Code of 1986.</text></subsection> <subsection id="H75E1FD57684141F990C1DEB48EA280F7" commented="no"><enum>(f)</enum><header>Application</header><text>This section shall not apply to discharges after December 31, 2006.</text></subsection></section> <section id="H9455F4D786714567A69D45E0B022F69B"><enum>105.</enum><header>Special rules for mortgage revenue bonds</header> <subsection id="HE7AB0ED40A1C472788AE796D55CEA4C"><enum>(a)</enum><header>In general</header><text>In the case of financing provided with respect to a qualified Hurricane Katrina recovery residence, subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/143">section 143</external-xref> of the Internal Revenue Code of 1986 shall be applied as if such residence were a targeted area residence.</text></subsection> <subsection id="H0F19C93326344FB1B5C4E54EF114EAD"><enum>(b)</enum><header>Qualified Hurricane Katrina recovery residence</header><text>For purposes of this section, the term <quote>qualified Hurricane Katrina recovery residence</quote> means any residence if such residence is located in an area which is determined by the President 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 Hurricane Katrina.</text></subsection> <subsection id="H95D47E4AB4FC4866AA2E926EC987D8C5"><enum>(c)</enum><header>Application</header><text>Subsection (a) shall not apply to financing provided after December 31, 2007.</text></subsection></section> <section id="HA9FA8F1F03A74AF892E008D542BFDB" display-inline="no-display-inline" section-type="subsequent-section"><enum>106.</enum><header>Suspension of certain limitations on personal casualty losses</header><text display-inline="no-display-inline">Paragraphs (1) and (2)(A) of <external-xref legal-doc="usc" parsable-cite="usc/26/165">section 165(h)</external-xref> of the Internal Revenue Code of 1986 shall not apply to losses described in section 165(c)(3) of such Code which are attributable to Hurricane Katrina. In the case of any other losses, section 165(h)(2)(A) of such Code shall be applied without regard to the losses referred to in the preceding sentence.</text></section> <section id="H87A613291A9B4264ADB2D1BDE78416F"><enum>107.</enum><header>Additional exemption for housing Hurricane Katrina displaced individuals</header> <subsection id="H6F3AB738246649838BF4372D4FD55D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of taxable years of a natural person beginning in 2005 and 2006, for purposes of the Internal Revenue Code of 1986, taxable income shall be reduced by $500 for each Hurricane Katrina displaced individual of the taxpayer for the taxable year.</text></subsection> <subsection id="HDC66AC583CE743D299F81D250967B200"><enum>(b)</enum><header>Limitations</header> <paragraph id="H269336E16A1A473A85BEB25C518527BE"><enum>(1)</enum><header>Dollar limitation</header><text>The reduction under subsection (a) shall not exceed $2,000, reduced by the amount of the reduction under this section for all previous taxable years.</text></paragraph> <paragraph id="HD595BA5909524226A5F538BCCBED2316"><enum>(2)</enum><header>Individuals taken into account only once</header><text>An individual shall not be taken into account under subsection (a) if such individual was taken into account under such subsection by the taxpayer in any prior taxable year.</text></paragraph></subsection> <subsection id="H30EDE81FF11040BE87244503911132FE"><enum>(c)</enum><header>Hurricane Katrina displaced individual</header><text>For purposes of this subsection, the term <quote>Hurricane Katrina displaced individual</quote> means, with respect to any taxpayer for any taxable year, a natural person who—</text> <paragraph id="HF84B56C2412C4E4BB7C5358C1CC91DAC"><enum>(1)</enum><text display-inline="yes-display-inline">was (as of August 28, 2005) a resident of any area which is determined by the President 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 Hurricane Katrina,</text></paragraph> <paragraph id="H971C1148A3314AB6A99D99CA387CB774"><enum>(2)</enum><text>is displaced from the person’s residence located in the area described in paragraph (1), and</text></paragraph> <paragraph id="H33D9D0315AD94A9990A25DFB94BEECD7"><enum>(3)</enum><text>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.</text></paragraph><continuation-text continuation-text-level="subsection">Such term shall not include the spouse or any dependent of the taxpayer. </continuation-text></subsection></section> <section id="H1E314DCABFAD45D2A1016F181D7D25BE" section-type="subsequent-section" display-inline="no-display-inline" commented="no"><enum>108.</enum><header>Special rule for determining earned income</header> <subsection id="H80C92CE756DB4C4E879967009837098D" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualified individual, if the earned income of the taxpayer for the taxable year of such taxpayer which includes August 28, 2005, is less than the earned income which is attributable to the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting—</text> <paragraph id="H0FAB9290F88449E189D73C9F18DC3B33" commented="no"><enum>(1)</enum><text>such earned income for the preceding taxable year, for</text></paragraph> <paragraph id="HDB0BE716CA1D4F0C82A97D795EF28C16" commented="no"><enum>(2)</enum><text>such earned income for the taxable year which includes August 28, 2005.</text></paragraph></subsection> <subsection id="H26C1C0E422B940D884EEB583513CA98F" commented="no"><enum>(b)</enum><header>Qualified individual</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified individual</quote> means any individual who was (as of August 28, 2005) a resident of any area which is determined by the President 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 Hurricane Katrina.</text></subsection> <subsection id="H282CD0D5159242589BCB08A2C7677578" commented="no"><enum>(c)</enum><header>Earned income</header><text>For purposes of this section, the term <quote>earned income</quote> has the meaning given such term under section 32(c) of such Code.</text></subsection> <subsection id="H6590A19F919F4977BD70EFFCFF984371" commented="no"><enum>(d)</enum><header>Special rules</header> <paragraph id="HB72AF838C2DF401DBD748CBF79B10069" commented="no"><enum>(1)</enum><header>Application to joint returns</header><text>For purpose of subsection (a), in the case of a joint return for a taxable year which includes August 28, 2005,</text> <subparagraph id="H8A7CF8089D27480399ABBCA36EFEF7E6"><enum>(A)</enum><text>such subsection shall apply if either spouse is a qualified individual,</text></subparagraph> <subparagraph id="H26C5CD775078447389D1F4CCD8000035"><enum>(B)</enum><text>the earned income which is attributable to the taxpayer for the preceding taxable year shall be the sum of the earned income which is attributable to each spouse for such preceding taxable year, and</text></subparagraph> <subparagraph id="H64897C70142F4AD28529979CC71EBD64"><enum>(C)</enum><text>the substitution described in such subsection shall apply only with respect to earned income which is attributable to a spouse who is a qualified individual.</text></subparagraph></paragraph> <paragraph id="H3D1BA9EBAFA24927B76B111916F0B2BD" commented="no"><enum>(2)</enum><header>Uniform application of election</header><text>Any election made under subsection (a) shall apply with respect to both section 24(d) and section 32 of such Code.</text></paragraph> <paragraph id="HA984742343E34792A565AA6DD4AC17F8" commented="no"><enum>(3)</enum><header>Errors treated as mathematical error</header><text>For purposes of section 6213 of such Code, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error.</text></paragraph> <paragraph id="HCCA00FED3F894CC4AF71C19F3C134409" commented="no"><enum>(4)</enum><header>No effect on determination of gross income</header><text>For purposes of the Internal Revenue Code of 1986, gross income shall be determined without regard to any substitution under subsection (a).</text></paragraph></subsection></section> <section id="H70772432C5054A6E83882825CE12CD42" commented="no"><enum>109.</enum><header>Secretarial authority to make adjustments regarding taxpayer and dependency status</header><text display-inline="no-display-inline">With respect to taxable years beginning in 2005 or 2006, the Secretary of the Treasury, or his delegate, may make such adjustments in the application of the internal revenue laws as may be necessary to ensure that taxpayers do not lose dependency exemptions or child credits or experience a change of filing status by reason of temporary relocations after Hurricane Katrina or by reason of the receipt of hurricane relief. Any adjustments made under the preceding sentence shall ensure that an individual is not taken into account by more than one taxpayer with respect to the same tax benefit.</text></section> <section id="H75F34B08BE8041E384C5EFCC45D0C0CB"><enum>110.</enum><header>Work opportunity tax credit for Hurricane Katrina employees</header> <subsection id="H637D76A32C28454DB2C2FF4F1CE4347F"><enum>(a)</enum><header>In general</header><text>For purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/51">section 51</external-xref> of the Internal Revenue Code of 1986, a Hurricane Katrina employee shall be treated as a member of a targeted group.</text></subsection> <subsection id="H2C7A4CC927D34246005B304900A922C"><enum>(b)</enum><header>Hurricane Katrina employee</header><text>For purposes of this section, the term <quote>Hurricane Katrina employee</quote> means any individual who, on August 28, 2005, had a principal place of abode in a Hurricane Katrina disaster area.</text> </subsection> <subsection id="HD3D39704547D4F36A1DA8591261BD93C"><enum>(c)</enum><header>Special rules for determining credit</header><text>For purposes of applying subpart F of part IV of subchapter A of chapter 1 of such Code to wages paid or incurred to any Hurricane Katrina employee—</text> <paragraph id="H53C168C1F29C415F8C00EC5BD29F0106"><enum>(1)</enum><text>section 51(c)(4) of such Code shall not apply, and</text></paragraph> <paragraph id="HA4F376EAF4314D0FA50050E8CE1D7ECC"><enum>(2)</enum><text display-inline="yes-display-inline">except in the case of an employee of the employer (within the meaning of section 51 of such Code) on August 28, 2005, or an employee initially hired after such date, section 51(i)(2) of such Code shall not apply.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H513F4F1197B145DB978C6D39FF129600"><enum>(d)</enum><header>Application of section</header><text>This section shall apply only to wages (within the meaning on section 51(c) of such Code) paid or incurred to any individual who—</text> <paragraph id="HB461C8C12A874D8697B559FB6C018DC2"><enum>(1)</enum><text>is being hired for a position the principal place of employment of which is located in a Hurricane Katrina disaster area, and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HA7D18E0A6D64431CA98B8E59D317FBFA"><enum>(2)</enum><text>who begins work for the employer during the 2-year period beginning on August 29, 2005.</text></paragraph></subsection> <subsection id="HCDAB14FB7C7C4D72880825D5F46811DC" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Hurricane Katrina disaster area</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>Hurricane Katrina disaster area</term> means any area which is determined by the President 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 Hurricane Katrina.</text> </subsection></section>

109 HR 3768 IH: Katrina Emergency Tax Relief Act of 2005 U.S. House of Representatives 2005-09-14 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.

Short title

This Act may be cited as the

Katrina Emergency Tax Relief Act of 2005

Designation as emergency requirement

Any provision of this Act causing an effect on receipts, budget authority, or outlays is designated as an emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress).

<enum>I</enum><header>General Tax Relief Provisions</header> <section id="H5790506949234AFE00634B00D66D02D6" section-type="subsequent-section" display-inline="no-display-inline"><enum>101.</enum><header>Extension of replacement period for nonrecognition of gain</header><text display-inline="no-display-inline">Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/1033">section 1033(a)(2)(B)</external-xref> of the Internal Revenue Code of 1986 shall be applied by substituting <quote>5 years</quote> for <quote>2 years</quote> with respect to property which—</text> <paragraph id="HA30CDA65EC3946E58E6E0900AE755066"><enum>(1)</enum><text display-inline="yes-display-inline">is located in an area determined by the President 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 Hurricane Katrina, and</text></paragraph> <paragraph id="HD8CB8FC83FC14C2A9189917451B7FA73"><enum>(2)</enum><text>is compulsorily or involuntarily converted as a result of such hurricane, </text></paragraph><continuation-text continuation-text-level="subsection">but only if substantially all of the use of the replacement property is located in any such area.</continuation-text></section> <section id="H921D5A0D3ABB459EBD4D2149995D2E38" section-type="subsequent-section" display-inline="no-display-inline"><enum>102.</enum><header>Suspension of limitations on charitable contributions for relief efforts related to Hurricane Katrina</header> <subsection id="H1471A90C356040C3971B689E392BC6FB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in subsection (b), qualified disaster contributions shall not be taken into account for purposes of subsections (b) and (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170</external-xref> of the Internal Revenue Code of 1986.</text></subsection> <subsection id="H63061CE5E37F4ADDB3A1C77CAB00EA91"><enum>(b)</enum><header>Treatment of excess contributions</header><text>For purposes of section 170 of such Code—</text> <paragraph id="H04ABB83A585E4EF7935EDC464816C719"><enum>(1)</enum><header>Individuals</header><text>In the case of an individual—</text> <subparagraph id="H4CA1D5DB810E45AF957604809DA4E370"><enum>(A)</enum><header>Limitation</header><text>Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s contribution base (as defined in paragraph (1) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.</text></subparagraph> <subparagraph id="HF0DBB0932A074B27A74DB48776566166"><enum>(B)</enum><header>Carryover</header><text display-inline="yes-display-inline">If the aggregate amount of qualified disaster contributions made in the contribution year (within the meaning of section 170(d)(1) of such Code) exceeds the limitation of subparagraph (A), such excess shall be added to the excess described in the portion of subparagraph (A) of such section which precedes clause (i) thereof for purposes of applying such section.</text></subparagraph></paragraph> <paragraph id="H56532AECD6BA4EAC88E116997EDB9CFD"><enum>(2)</enum><header>Corporations</header><text>In the case of a corporation—</text> <subparagraph id="H2DE415CB79514E018B537B402BB1D5C4"><enum>(A)</enum><header>Limitation</header><text>Any qualified disaster contribution shall be allowed only to the extent that the aggregate of such contributions does not exceed the excess of the taxpayer’s taxable income (as determined under paragraph (2) of section 170(b) of such Code) over the amount of all other charitable contributions allowed under such paragraph.</text></subparagraph> <subparagraph id="H1AC41CB5F8294868BF90F128F0F08723"><enum>(B)</enum><header>Carryover</header><text>Rules similar to the rules of paragraph (1)(B) shall apply for purposes of this paragraph.</text></subparagraph></paragraph></subsection> <subsection id="HA32A77A20738475E8307C04F3BB8F1C9" display-inline="no-display-inline"><enum>(c)</enum><header>Exception to overall limitation on itemized deductions</header><text>So much of any deduction allowed under section 170 of such Code as does not exceed the qualified disaster contributions made during the taxable year shall not be treated as an itemized deduction for purposes of section 68 of such Code.</text></subsection> <subsection id="H0DA35212DC544D98A48175E892EF6D43"><enum>(d)</enum><header>Qualified disaster contributions</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified disaster contribution</quote> means any charitable contribution (as defined in section 170(c) of such Code)—</text> <paragraph id="H82485DBF814749C0A72616183CB72ED"><enum>(1)</enum><text>made during the period beginning on August 28, 2005, and ending on December 31, 2005, in cash to an organization described in section 170(b)(1)(A) of such Code (other than an organization described in section 509(a)(3) of such Code) for relief efforts related to Hurricane Katrina, and</text></paragraph> <paragraph id="H6CDF046A74DA4F7CAC386EF4218DB008"><enum>(2)</enum><text>with respect to which the taxpayer has elected the application of this section.</text></paragraph><continuation-text continuation-text-level="subsection">In the case of a partnership or S corporation, the election under paragraph (2) shall be made separately by each partner or shareholder. </continuation-text></subsection></section> <section id="HE8CC6EE6C40A479F90B64D3C6962C685" section-type="subsequent-section" display-inline="no-display-inline"><enum>103.</enum><header>Mileage rate for charitable purposes related to Hurricane Katrina</header> <subsection id="H620BB18DB32F4D9C9F9634C7157205D8"><enum>(a)</enum><header>Mileage rate for charitable purposes related to hurricane Katrina</header><text display-inline="yes-display-inline">Notwithstanding subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170</external-xref> of the Internal Revenue Code of 1986, in the case of the use of a vehicle described in subsection (f)(12)(E)(i) of such section for provision of relief related to Hurricane Katrina, the standard mileage rate for purposes of such section shall be 70 percent of the standard mileage rate for business purposes prescribed by the Secretary for purposes of chapter 1 of such Code which is in effect on the date of the contribution.</text></subsection> <subsection id="H321CA64278444E20B11106E728B909B0"><enum>(b)</enum><header>Application</header><text>Subsection (a) shall apply only with respect to contributions made before January 1, 2007.</text></subsection></section> <section id="HC749AC44B0F248BF9FD5BEE4DBB7F9C1" section-type="subsequent-section" commented="no" display-inline="no-display-inline"><enum>104.</enum><header>Exclusion of certain cancellations of indebtedness</header> <subsection id="H93D8F0E1332D411B84CE45577DB763B9" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of the Internal Revenue Code of 1986, gross income shall not include any amount which (but for this section) would be includible in gross income by reason of the discharge (in whole or in part) of qualified nonbusiness debt of a qualified individual by an applicable entity (as defined in section 6050P(c)).</text></subsection> <subsection id="H6ED9A03DBE0F44088151906E06FD00B4"><enum>(b)</enum><header>Qualified nonbusiness debt</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified nonbusiness debt</quote> means any indebtedness other than indebtedness incurred in connection with a trade or business.</text></subsection> <subsection id="H1502CD1A1CC14B36009D10E7F85DAE19"><enum>(c)</enum><header>Qualified individual</header><text>For purposes of this section, the term <quote>qualified individual</quote> means any natural person who was a resident (as of August 28, 2005) of, or who owned real property (as of the date of such discharge) in, any area which is determined by the President 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 Hurricane Katrina. </text></subsection> <subsection id="H99773C7794E4405785A9AE39B508B3E9" commented="no"><enum>(d)</enum><header>Exception for real property outside disaster area</header><text>Subsection (a) shall not apply to any discharge of indebtedness to the extent that real property constituting security for such indebtedness is located outside of the area described in subsection (c).</text></subsection> <subsection id="H6DCF77F3E38040F991D968CA58A468B4"><enum>(e)</enum><header>Denial of double benefit</header><text>The amount excluded from gross income under subsection (a) shall be applied to reduce the tax attributes of the taxpayer as provided in <external-xref legal-doc="usc" parsable-cite="usc/26/108">section 108(b)</external-xref> of the Internal Revenue Code of 1986.</text></subsection> <subsection id="H75E1FD57684141F990C1DEB48EA280F7" commented="no"><enum>(f)</enum><header>Application</header><text>This section shall not apply to discharges after December 31, 2006.</text></subsection></section> <section id="H9455F4D786714567A69D45E0B022F69B"><enum>105.</enum><header>Special rules for mortgage revenue bonds</header> <subsection id="HE7AB0ED40A1C472788AE796D55CEA4C"><enum>(a)</enum><header>In general</header><text>In the case of financing provided with respect to a qualified Hurricane Katrina recovery residence, subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/143">section 143</external-xref> of the Internal Revenue Code of 1986 shall be applied as if such residence were a targeted area residence.</text></subsection> <subsection id="H0F19C93326344FB1B5C4E54EF114EAD"><enum>(b)</enum><header>Qualified Hurricane Katrina recovery residence</header><text>For purposes of this section, the term <quote>qualified Hurricane Katrina recovery residence</quote> means any residence if such residence is located in an area which is determined by the President 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 Hurricane Katrina.</text></subsection> <subsection id="H95D47E4AB4FC4866AA2E926EC987D8C5"><enum>(c)</enum><header>Application</header><text>Subsection (a) shall not apply to financing provided after December 31, 2007.</text></subsection></section> <section id="HA9FA8F1F03A74AF892E008D542BFDB" display-inline="no-display-inline" section-type="subsequent-section"><enum>106.</enum><header>Suspension of certain limitations on personal casualty losses</header><text display-inline="no-display-inline">Paragraphs (1) and (2)(A) of <external-xref legal-doc="usc" parsable-cite="usc/26/165">section 165(h)</external-xref> of the Internal Revenue Code of 1986 shall not apply to losses described in section 165(c)(3) of such Code which are attributable to Hurricane Katrina. In the case of any other losses, section 165(h)(2)(A) of such Code shall be applied without regard to the losses referred to in the preceding sentence.</text></section> <section id="H87A613291A9B4264ADB2D1BDE78416F"><enum>107.</enum><header>Additional exemption for housing Hurricane Katrina displaced individuals</header> <subsection id="H6F3AB738246649838BF4372D4FD55D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of taxable years of a natural person beginning in 2005 and 2006, for purposes of the Internal Revenue Code of 1986, taxable income shall be reduced by $500 for each Hurricane Katrina displaced individual of the taxpayer for the taxable year.</text></subsection> <subsection id="HDC66AC583CE743D299F81D250967B200"><enum>(b)</enum><header>Limitations</header> <paragraph id="H269336E16A1A473A85BEB25C518527BE"><enum>(1)</enum><header>Dollar limitation</header><text>The reduction under subsection (a) shall not exceed $2,000, reduced by the amount of the reduction under this section for all previous taxable years.</text></paragraph> <paragraph id="HD595BA5909524226A5F538BCCBED2316"><enum>(2)</enum><header>Individuals taken into account only once</header><text>An individual shall not be taken into account under subsection (a) if such individual was taken into account under such subsection by the taxpayer in any prior taxable year.</text></paragraph></subsection> <subsection id="H30EDE81FF11040BE87244503911132FE"><enum>(c)</enum><header>Hurricane Katrina displaced individual</header><text>For purposes of this subsection, the term <quote>Hurricane Katrina displaced individual</quote> means, with respect to any taxpayer for any taxable year, a natural person who—</text> <paragraph id="HF84B56C2412C4E4BB7C5358C1CC91DAC"><enum>(1)</enum><text display-inline="yes-display-inline">was (as of August 28, 2005) a resident of any area which is determined by the President 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 Hurricane Katrina,</text></paragraph> <paragraph id="H971C1148A3314AB6A99D99CA387CB774"><enum>(2)</enum><text>is displaced from the person’s residence located in the area described in paragraph (1), and</text></paragraph> <paragraph id="H33D9D0315AD94A9990A25DFB94BEECD7"><enum>(3)</enum><text>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.</text></paragraph><continuation-text continuation-text-level="subsection">Such term shall not include the spouse or any dependent of the taxpayer. </continuation-text></subsection></section> <section id="H1E314DCABFAD45D2A1016F181D7D25BE" section-type="subsequent-section" display-inline="no-display-inline" commented="no"><enum>108.</enum><header>Special rule for determining earned income</header> <subsection id="H80C92CE756DB4C4E879967009837098D" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualified individual, if the earned income of the taxpayer for the taxable year of such taxpayer which includes August 28, 2005, is less than the earned income which is attributable to the taxpayer for the preceding taxable year, the credits allowed under sections 24(d) and 32 of the Internal Revenue Code of 1986 may, at the election of the taxpayer, be determined by substituting—</text> <paragraph id="H0FAB9290F88449E189D73C9F18DC3B33" commented="no"><enum>(1)</enum><text>such earned income for the preceding taxable year, for</text></paragraph> <paragraph id="HDB0BE716CA1D4F0C82A97D795EF28C16" commented="no"><enum>(2)</enum><text>such earned income for the taxable year which includes August 28, 2005.</text></paragraph></subsection> <subsection id="H26C1C0E422B940D884EEB583513CA98F" commented="no"><enum>(b)</enum><header>Qualified individual</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified individual</quote> means any individual who was (as of August 28, 2005) a resident of any area which is determined by the President 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 Hurricane Katrina.</text></subsection> <subsection id="H282CD0D5159242589BCB08A2C7677578" commented="no"><enum>(c)</enum><header>Earned income</header><text>For purposes of this section, the term <quote>earned income</quote> has the meaning given such term under section 32(c) of such Code.</text></subsection> <subsection id="H6590A19F919F4977BD70EFFCFF984371" commented="no"><enum>(d)</enum><header>Special rules</header> <paragraph id="HB72AF838C2DF401DBD748CBF79B10069" commented="no"><enum>(1)</enum><header>Application to joint returns</header><text>For purpose of subsection (a), in the case of a joint return for a taxable year which includes August 28, 2005,</text> <subparagraph id="H8A7CF8089D27480399ABBCA36EFEF7E6"><enum>(A)</enum><text>such subsection shall apply if either spouse is a qualified individual,</text></subparagraph> <subparagraph id="H26C5CD775078447389D1F4CCD8000035"><enum>(B)</enum><text>the earned income which is attributable to the taxpayer for the preceding taxable year shall be the sum of the earned income which is attributable to each spouse for such preceding taxable year, and</text></subparagraph> <subparagraph id="H64897C70142F4AD28529979CC71EBD64"><enum>(C)</enum><text>the substitution described in such subsection shall apply only with respect to earned income which is attributable to a spouse who is a qualified individual.</text></subparagraph></paragraph> <paragraph id="H3D1BA9EBAFA24927B76B111916F0B2BD" commented="no"><enum>(2)</enum><header>Uniform application of election</header><text>Any election made under subsection (a) shall apply with respect to both section 24(d) and section 32 of such Code.</text></paragraph> <paragraph id="HA984742343E34792A565AA6DD4AC17F8" commented="no"><enum>(3)</enum><header>Errors treated as mathematical error</header><text>For purposes of section 6213 of such Code, an incorrect use on a return of earned income pursuant to subsection (a) shall be treated as a mathematical or clerical error.</text></paragraph> <paragraph id="HCCA00FED3F894CC4AF71C19F3C134409" commented="no"><enum>(4)</enum><header>No effect on determination of gross income</header><text>For purposes of the Internal Revenue Code of 1986, gross income shall be determined without regard to any substitution under subsection (a).</text></paragraph></subsection></section> <section id="H70772432C5054A6E83882825CE12CD42" commented="no"><enum>109.</enum><header>Secretarial authority to make adjustments regarding taxpayer and dependency status</header><text display-inline="no-display-inline">With respect to taxable years beginning in 2005 or 2006, the Secretary of the Treasury, or his delegate, may make such adjustments in the application of the internal revenue laws as may be necessary to ensure that taxpayers do not lose dependency exemptions or child credits or experience a change of filing status by reason of temporary relocations after Hurricane Katrina or by reason of the receipt of hurricane relief. Any adjustments made under the preceding sentence shall ensure that an individual is not taken into account by more than one taxpayer with respect to the same tax benefit.</text></section> <section id="H75F34B08BE8041E384C5EFCC45D0C0CB"><enum>110.</enum><header>Work opportunity tax credit for Hurricane Katrina employees</header> <subsection id="H637D76A32C28454DB2C2FF4F1CE4347F"><enum>(a)</enum><header>In general</header><text>For purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/51">section 51</external-xref> of the Internal Revenue Code of 1986, a Hurricane Katrina employee shall be treated as a member of a targeted group.</text></subsection> <subsection id="H2C7A4CC927D34246005B304900A922C"><enum>(b)</enum><header>Hurricane Katrina employee</header><text>For purposes of this section, the term <quote>Hurricane Katrina employee</quote> means any individual who, on August 28, 2005, had a principal place of abode in a Hurricane Katrina disaster area.</text> </subsection> <subsection id="HD3D39704547D4F36A1DA8591261BD93C"><enum>(c)</enum><header>Special rules for determining credit</header><text>For purposes of applying subpart F of part IV of subchapter A of chapter 1 of such Code to wages paid or incurred to any Hurricane Katrina employee—</text> <paragraph id="H53C168C1F29C415F8C00EC5BD29F0106"><enum>(1)</enum><text>section 51(c)(4) of such Code shall not apply, and</text></paragraph> <paragraph id="HA4F376EAF4314D0FA50050E8CE1D7ECC"><enum>(2)</enum><text display-inline="yes-display-inline">except in the case of an employee of the employer (within the meaning of section 51 of such Code) on August 28, 2005, or an employee initially hired after such date, section 51(i)(2) of such Code shall not apply.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H513F4F1197B145DB978C6D39FF129600"><enum>(d)</enum><header>Application of section</header><text>This section shall apply only to wages (within the meaning on section 51(c) of such Code) paid or incurred to any individual who—</text> <paragraph id="HB461C8C12A874D8697B559FB6C018DC2"><enum>(1)</enum><text>is being hired for a position the principal place of employment of which is located in a Hurricane Katrina disaster area, and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HA7D18E0A6D64431CA98B8E59D317FBFA"><enum>(2)</enum><text>who begins work for the employer during the 2-year period beginning on August 29, 2005.</text></paragraph></subsection> <subsection id="HCDAB14FB7C7C4D72880825D5F46811DC" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Hurricane Katrina disaster area</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>Hurricane Katrina disaster area</term> means any area which is determined by the President 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 Hurricane Katrina.</text> </subsection></section> <enum>II</enum><header>Penalty free use of retirement funds in the case of natural disasters</header> <section id="H2FCB3A694AE84891B4F56663E00F99D"><enum>201.</enum><header>Penalty free withdrawals from retirement plans upon federal declaration of natural disaster</header> <subsection id="H902C914B05E64F999744247C7C988BAA"><enum>(a)</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 (relating to 10-percent additional tax on early distributions from qualified retirement plans) is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H0D3484C0A4C84BE48B6BC0A89113E584"> <subparagraph id="H27821E4CA96A4BB3AD291539D79C88ED"><enum>(G)</enum><header>Distributions from retirement plans upon federal declaration of natural disaster</header> <clause id="H2A70D18427DA4E68BF7B2529C4325300"><enum>(i)</enum><header>In general</header><text>Any qualified disaster-relief distribution.</text></clause> <clause id="H25E22FB781C4478C8CA25E26D93B5EB1"><enum>(ii)</enum><header>Aggregate limitation</header><text display-inline="yes-display-inline">The aggregate amount of payments or distributions received by an individual which may be treated as qualified disaster-relief distributions for any taxable year shall not exceed the excess (if any) of—</text> <subclause id="HE3E5DB55BC744B87A84F8759C554B800"><enum>(I)</enum><text>$100,000, over </text></subclause> <subclause id="HD3EBAD66CC1F4179ADE5797437D27C31"><enum>(II)</enum><text>the aggregate amounts treated as qualified disaster-relief distributions with respect to such individual for all prior taxable years. </text></subclause></clause> <clause id="HF411DD62A5484A75A863FE10EF4900C0"><enum>(iii)</enum><header>Amount distributed may be repaid</header> <subclause id="H783076E1CE5E4EF7BCBF3E00D7008D91"><enum>(I)</enum><header>In general</header><text>Any individual who receives a qualified disaster-relief distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was made, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan (as defined in section 402(c)(8)(B)) 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), or 408(d)(3), as the case may be.</text></subclause> <subclause id="HA0871615FDD540E3BAD39EB9DAD6C1F"><enum>(II)</enum><header>Treatment of repayments for distributions from eligible retirement plans other than IRAs</header><text>For purposes of this title, if a contribution is made pursuant to subclause (I) with respect to a qualified disaster-relief distribution from an eligible retirement plan (as so defined) 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 disaster-relief 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></subclause> <subclause id="H06EB5E260E5C41649FDFFF32CB12523F"><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 subclause (I) with respect to a qualified disaster-relief distribution from an individual retirement plan, then, to the extent of the amount of the contribution, the qualified disaster-relief 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></subclause> <subclause commented="no" display-inline="no-display-inline" id="H9AC3A22AAC77413DA584785309C3BC16"><enum>(IV)</enum><header>Application to governmental section 457 plans</header><text>In determining whether any distribution is a qualified disaster-relief distribution for purposes of this clause, an eligible deferred compensation plan (as defined in section 457(b)) maintained by an employer described in section 457(e)(1)(A) shall be treated as a qualified retirement plan.</text></subclause></clause> <clause id="H7B39258E0C64407A882EFC50428EFC6D"><enum>(iv)</enum><header>Qualified disaster-relief distribution</header><text>For purposes of this subparagraph, the term <term>qualified disaster-relief distribution</term> means any distribution—</text> <subclause id="H7BA6BD8E254E401196D43D9432A54D4B" commented="no"><enum>(I)</enum><text>to an individual who has sustained a loss as a result of a major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Katrina and who has a principal place of abode immediately before the declaration in a qualified disaster area, and</text></subclause> <subclause id="HFB7387E4026D4A7DA7152F024BF8D0FA"><enum>(II)</enum><text>which is made during the 1-year period beginning on the date such declaration is made.</text></subclause></clause> <clause id="H607F7BA52C4547BCBF79439192C225D8" commented="no"><enum>(v)</enum><header>Qualified disaster area</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>qualified disaster area</term> means any area which is determined by the President 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 Hurricane Katrina.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HDC02991410D7463D96D92F3C87A8623C"><enum>(b)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>Paragraph (4) of section 402(c) of such Code (relating to eligible rollover distribution) is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by inserting at the end the following new subparagraph:</text> <quoted-block id="H387F7CC7095B4718B5E4BC62CDE4C9C"> <subparagraph id="H4D48DF7EBD7D470CABB1DB05C2A09695"><enum>(D)</enum><text>any qualified disaster-relief distribution (within the meaning of section 72(t)(2)(G)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="HC513DF6FF54243F08FD150A413DBC999"><enum>(c)</enum><header>Conforming amendments</header> <paragraph id="H8B43E0163A3B45C991773638CD19AF80"><enum>(1)</enum><text>Section 401(k)(2)(B)(i) of such Code is amended by striking <quote>or</quote> at the end of subclause (III), by striking <quote>and</quote> at the end of subclause (IV) and inserting <quote>or</quote>, and by inserting after subclause (IV) the following new subclause:</text> <quoted-block id="HA0411B64CB304508966FC2221410DB1D"> <subclause id="HF4568A2A16E7418486CA1E5E9622B7E9"><enum>(V)</enum><text>the date on which a period referred to in section 72(t)(2)(G)(iii)(II) begins (but only to the extent provided in section 72(t)(2)(G)), and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="H0A2C9F756D904F2AB3B652EF5F6A219"><enum>(2)</enum><text>Section 403(b)(7)(A)(ii) of such Code is amended by inserting <quote>sustains a loss as a result of a major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of Hurricane Katrina (but only to the extent provided in section 72(t)(2)(G)),</quote> before <quote>or</quote>.</text></paragraph> <paragraph id="HE8D0A056C30E4BABA7ED1D28F2B6CE8"><enum>(3)</enum><text>Section 403(b)(11) of such Code is amended by striking <quote>or</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, or</quote>, and by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block id="H5128E53DFFD24094A45F95ADF9C6F55F"> <subparagraph id="HFCD7D5846BD246E2B4ED70D4A1EC64D3"><enum>(C)</enum><text>for distributions to which section 72(t)(2)(G) applies.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H066F463D88724E0A8D107C48EEE2F98C"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions received after August 28, 2005.</text></subsection></section> <section commented="no" display-inline="no-display-inline" id="HFB998D659CDA4FBA9E834084F0CD9001"><enum>202.</enum><header>Income averaging for disaster-relief distributions related to Hurricane Katrina</header> <subsection commented="no" display-inline="no-display-inline" id="H67F89D19D47F431389306100972400D"><enum>(a)</enum><header>In general</header><text>In the case of any qualified disaster-relief distribution (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(2)(G)</external-xref> of the Internal Revenue Code of 1986) from a qualified retirement plan (as defined in section 4974(c) of such Code) to a qualified individual, unless the taxpayer elects not to have this section 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></subsection> <subsection commented="no" display-inline="no-display-inline" id="HC66E1D57E764455994EC4F1F4D8CEC10"><enum>(b)</enum><header>Special rules</header> <paragraph commented="no" display-inline="no-display-inline" id="HD0EFF10BF3E8461AA710D2FE529C2222"><enum>(1)</enum><header>Application to governmental section 457 plans</header><text>In determining whether any distribution is a qualified disaster-relief distribution (as so defined) for purposes of this section, an eligible deferred compensation plan (as defined in section 457(b) of such Code) maintained by an employer described in section 457(e)(1)(A) of such Code shall be treated as a qualified retirement plan (as so defined)</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H06F2E1E7F1ED4E01B869D5B54BD3F015"><enum>(2)</enum><header>Certain rules to apply</header><text>Rules similar to the rules of subparagraph (E) of section 408A(d)(3) of such Code shall apply for purposes of this section.</text></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H8C5F7EC896614278B920881B2C58C1B4"><enum>(c)</enum><header>Qualified individual</header><text>For purposes of this section, the term <term>qualified individual</term> means an individual who has sustained a loss as a result of the major disaster declared under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5170">42 U.S.C. 5170</external-xref>) by reason of Hurricane Katrina and who has a principal place of abode immediately before the declaration in a Hurricane Katrina disaster area.</text></subsection> <subsection id="HBF731EEB047B439FBB88D610C8772875" commented="no"><enum>(d)</enum><header>Hurricane Katrina disaster area</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>Hurricane Katrina disaster area</term> means any area which is determined by the President 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 Hurricane Katrina.</text> </subsection></section> <section commented="no" display-inline="no-display-inline" id="H43D76B3CF7824D2EB329D7648675D1CB"><enum>203.</enum><header>Recontributions of withdrawals for home purchases cancelled due to Hurricane Katrina</header> <subsection commented="no" display-inline="no-display-inline" id="HA8DC0999D5474AB30094ED00929546C8"><enum>(a)</enum><header>Recontributions</header> <paragraph commented="no" display-inline="no-display-inline" id="H04CF419E763048BAA4626406D75E3EDA"><enum>(1)</enum><header>In general</header><text>Any individual who received a qualified distribution may, at any time during the 6-month period beginning on the day after the disaster declaration date, make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986) 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) of such Code, as the case may be.</text></paragraph> <paragraph id="HE3A260A032FF4082A98D1E64E0FBC2BF"><enum>(2)</enum><header>Treatment of repayments</header> <subparagraph id="H738A057A0FB340089578086DFCA03834"><enum>(A)</enum><header>Treatment of repayments for distributions from eligible retirement plans other than IRAs</header><text>For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to paragraph (1) with respect to a qualified distribution from an eligible retirement plan (as so defined) other than an individual retirement plan (as defined in section 7701(a)(37) of such Code), then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received the qualified distribution in an eligible rollover distribution (as defined in section 402(c)(4) of such Code) 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></subparagraph> <subparagraph id="H14CEBE77EE70447A98E1DCEF84DB8DF5"><enum>(B)</enum><header>Treatment of repayments for distributions from IRAs</header><text>For purposes of the Internal Revenue Code of 1986, if a contribution is made pursuant to paragraph (1) with respect to a qualified distribution from an individual retirement plan (as so defined), then, to the extent of the amount of the contribution, the qualified distribution shall be treated as a distribution described in section 408(d)(3) of such Code and as having been transferred to the eligible retirement plan (as so defined) in a direct trustee to trustee transfer within 60 days of the distribution.</text></subparagraph></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="HBA4EB2552FE043B6A43F058400DCAD6B"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section—</text> <paragraph commented="no" display-inline="no-display-inline" id="H6A97AFF69768435DB1EF46FAB5003D76"><enum>(1)</enum><header>Qualified distribution</header><text>The term <term>qualified distribution</term> means any distribution—</text> <subparagraph commented="no" display-inline="no-display-inline" id="H636FCF07E5C647BFB486BA3E53CD4ECC"><enum>(A)</enum><text>described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(ii), 403(b)(11)(B), 457(d)(1)(A)(iii), or 72(t)(2)(F) of the Internal Revenue Code of 1986,</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="H393058EE87A04722A6B33657A1ABA024"><enum>(B)</enum><text>received after February 28, 2005, and before August 29, 2005, and</text></subparagraph> <subparagraph commented="no" display-inline="no-display-inline" id="HE033E570080B4239A0006769D3DA7190"><enum>(C)</enum><text>which was to be used to purchase or construct a principal residence in a Hurricane Katrina disaster area, but which was not so purchased or constructed.</text></subparagraph></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H6585610C63E94C499CF19793EE69FA08"><enum>(2)</enum><header>Disaster declaration date</header><text>The term <term>disaster declaration date</term> means the date on which the President designated the area as a Hurricane Katrina disaster area.</text></paragraph> <paragraph id="HCDFE399EEF1348E285511F8D3BCC9714" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Hurricane Katrina disaster area</header><text display-inline="yes-display-inline">The term <term>Hurricane Katrina disaster area</term> means any area which is determined by the President 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 Hurricane Katrina.</text> </paragraph></subsection></section> <section commented="no" display-inline="no-display-inline" id="HA8447B3385864A120043B69630313C5D"><enum>204.</enum><header>Loans from qualified plans in connection with Hurricane Katrina</header> <subsection commented="no" display-inline="no-display-inline" id="H427AC10CDAB544FDBC64A9E36FA6F6D1"><enum>(a)</enum><header>Increase in limit on loans not treated as distributions</header><text>In the case of any loan from a qualified employer plan (as defined under <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)(4)</external-xref> of the Internal Revenue Code of 1986) to a qualified individual (as defined in section 202(c)) made after the date of enactment of this Act and before the date which is 1 year after the disaster declaration date (as defined in section 203(b)(2))—</text> <paragraph commented="no" display-inline="no-display-inline" id="H8DCEE4E13BED4749B4EE004F07EAEED2"><enum>(1)</enum><text>clause (i) of section 72(p)(2)(A) of such Code shall be applied by substituting <quote>$100,000</quote> for <quote>$50,000</quote>, and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="HA5E21DA0B024476A96F2914F3FD7F6AB"><enum>(2)</enum><text>clause (ii) of such section 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></paragraph></subsection> <subsection commented="no" display-inline="no-display-inline" id="H185A637F92B545E083DBD8A26B9CF0DF"><enum>(b)</enum><header>Delay of repayment</header><text>In the case of a qualified individual (as defined in section 202(c)) with an outstanding loan on or after August 26, 2005, from a qualified employer plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(p)(4)</external-xref> of the Internal Revenue Code of 1986)—</text> <paragraph commented="no" display-inline="no-display-inline" id="H2CE3A44C8A6E4F5D93CC29F668737565"><enum>(1)</enum><text>if the due date pursuant to subparagraph (B) or (C) of section 72(p)(2) of such Code for any repayment with respect to such loan occurs during the period beginning after August 29, 2005, and ending before August 30, 2006, such due date shall be delayed for 1 year,</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H3F2773391CE741BC9B3CD007A02C59E1"><enum>(2)</enum><text>any subsequent repayments with respect to any such loan shall be appropriately adjusted to reflect the delay in the due date under paragraph (1) and any interest accruing during such delay, and</text></paragraph> <paragraph commented="no" display-inline="no-display-inline" id="H71F84C5A01B24E0CB578FD6CE8BD9DAE"><enum>(3)</enum><text>in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of section 72(p)(2) of such Code, such period shall be disregarded.</text></paragraph></subsection></section> <section id="HC6702476E7874F249720A100C46BE8E7"><enum>205.</enum><header>Provisions relating to plan amendments</header> <subsection id="H27022FD5ADAD485F8EF354A7C34FA116"><enum>(a)</enum><header>In General</header><text>If this section applies to any plan or contract amendment—</text> <paragraph id="H8873B6D7B8FA4D38B199D5087F3E1312"><enum>(1)</enum><text>such plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A), and</text></paragraph> <paragraph id="H01A1411A2EB3437E00A989C64B1000E0"><enum>(2)</enum><text>except as provided by the Secretary of the Treasury, such plan shall not fail to meet the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/411">section 411(d)(6)</external-xref> of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment.</text></paragraph></subsection> <subsection id="HA184909193164C1E87CD84E089ED564D"><enum>(b)</enum><header>Amendments to which section applies</header> <paragraph id="H2E419678CCB544E7B32183FA9233A804"><enum>(1)</enum><header>In general</header><text>This section shall apply to any amendment to any plan or annuity contract which is made—</text> <subparagraph id="H2CDD2F3A2ADB4FC2B9BDC0EF5732AE11"><enum>(A)</enum><text>pursuant to any amendment made by this title, or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor under this title, and</text></subparagraph> <subparagraph id="H4854A43C418B41B2B3018BEBA8CABCDE"><enum>(B)</enum><text>on or before the last day of the first plan year beginning on or after January 1, 2007, or such later date as the Secretary of the Treasury may prescribe.</text></subparagraph><continuation-text continuation-text-level="paragraph">In the case of a governmental plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986), subparagraph (B) shall be applied by substituting the date which is 2 years after the date otherwise applied under subparagraph (B).</continuation-text></paragraph> <paragraph id="H84F4E81E316543DFAEB71B3E004BD0D7"><enum>(2)</enum><header>Conditions</header><text>This section shall not apply to any amendment unless—</text> <subparagraph id="H66BD4E36B33C44689C7319F714785324"><enum>(A)</enum><text>during the period—</text> <clause id="H6F74D539689D428A8DDBCBAAFEBDC67"><enum>(i)</enum><text>beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan), and</text></clause> <clause id="HC5977518A9B7426C8CC7F9F0C3A747BE"><enum>(ii)</enum><text>ending on the date described in paragraph (1)(B) (or, if earlier, the date the plan or contract amendment is adopted),</text></clause><continuation-text continuation-text-level="subparagraph">the plan or contract is operated as if such plan or contract amendment were in effect; and</continuation-text></subparagraph> <subparagraph id="H7DBBB7BF2C2549A0A4344D21D2FE9CEC"><enum>(B)</enum><text>such plan or contract amendment applies retroactively for such period.</text></subparagraph></paragraph></subsection></section>