II 109th CONGRESS 1st Session S. 1696 IN THE SENATE OF THE UNITED STATES September 13, 2005 Mr. Grassley (for himself, Mr. Baucus, Mr. Lott, Ms. Landrieu, Mr. Vitter, Mr. Cochran, and Mr. Shelby) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide tax relief for the victims of Hurricane Katrina, to provide incentives for charitable giving, and for other purposes.

1.

Short title; amendment of 1986 Code; table of contents

(a)

Short title

This Act may be cited as the Hurricane Katrina Tax Relief Act of 2005. (b)

Amendment of 1986 Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; amendment of 1986 Code; table of contents. Sec. 2. Hurricane Katrina disaster area. TITLE I—Penalty free use of retirement funds by natural disaster victims Sec. 101. Penalty free withdrawals from retirement plans for victims of federally declared natural disasters. Sec. 102. Income averaging for disaster-relief distributions related to Hurricane Katrina. Sec. 103. Recontributions of withdrawals for home purchases cancelled due to Hurricane Katrina. Sec. 104. Loans from qualified plans to victims of Hurricane Katrina. Sec. 105. Provisions relating to plan amendments. TITLE II—Employment relief Sec. 201. Work opportunity tax credit for Hurricane Katrina employee survivors. Sec. 202. Payroll maintenance tax credit for employers affected by Hurricane Katrina. TITLE III—Charitable Giving Incentives Sec. 301. Temporary increase in limitation on individual and corporate charitable cash contributions. Sec. 302. Tax-free distributions from individual retirement accounts for charitable purposes. Sec. 303. Charitable deduction for contributions of food inventories. Sec. 304. Charitable deduction for contributions of book inventories. Sec. 305. Additional personal exemption amount for Hurricane Katrina houseguest. Sec. 306. Increase in standard mileage rate for charitable use of passenger automobile. TITLE IV—Additional tax relief provisions Sec. 401. Exclusions of certain cancellations of indebtedness for victims of Hurricane Katrina. Sec. 402. Modification to casualty loss rules for victims of Hurricane Katrina. Sec. 403. Required exercise of authority under section 7508A for tax relief for victims of Hurricane Katrina. Sec. 404. Renewal of special mortgage financing rules for residences located in Hurricane Katrina disaster area. Sec. 405. Extension of replacement period for nonrecognition of gain for property located in Hurricane Katrina disaster area. TITLE V—Additional provisions Sec. 501. Disclosure to State officials of proposed actions related to exempt organizations. Sec. 502. Dedication and use of certain fees.

2.

Hurricane Katrina disaster area

For purposes of this Act, the term Hurricane Katrina disaster area means an area— (1)with respect to which a major disaster has been declared by the President before September 14, 2005, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act in connection with Hurricane Katrina, and (2)which is determined by the President before such date to warrant individual assistance, or individual and public assistance, from the Federal Government under such Act.