[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1705 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1705

 To allow a credit against income tax for providing housing to victims 
of Hurricane Katrina and to amend the Internal Revenue Code of 1986 to 
    waive the limitation on charitable donations by individuals for 
     donations for the relief of the victims of Hurricane Katrina.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 14, 2005

  Mr. Salazar introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To allow a credit against income tax for providing housing to victims 
of Hurricane Katrina and to amend the Internal Revenue Code of 1986 to 
    waive the limitation on charitable donations by individuals for 
     donations for the relief of the victims of Hurricane Katrina.

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

SECTION 1. CREDIT FOR EXPENSES INCURRED FOR HOUSING VICTIMS OF 
              HURRICANE KATRINA.

    (a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by chapter 1 of the 
Internal Revenue Code of 1986 for the taxable year an amount equal to 
$20 for each day the taxpayer houses a Hurricane Katrina evacuee in the 
taxpayer's principal place of abode during the period beginning on 
August 26, 2005, and ending on December 31, 2005.
    (b) Limitations.--
            (1) Dollar limitation.--The credit allowed under subsection 
        (a) shall not exceed--
                    (A) $900 with respect to any Hurricane Katrina 
                evacuee, and
                    (B) $2,000 with respect to any taxpayer.
            (2) Minimum length of stay.--No credit shall be allowed 
        under subsection (a) with respect to any Hurricane Katrina 
        evacuee unless such evacuee is housed at the taxpayer's 
        principal residence for at least 7 consecutive days.
    (c) Hurricane Katrina Evacuee.--For purposes of this section, the 
term ``Hurricane Katrina evacuee'' means any individual--
            (1) whose principal place of abode is within an area--
                    (A) 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
                    (B) 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, and
            (2) who is not able to inhabit such principal place of 
        abode due to damage sustained from Hurricane Katrina.
    (d) Treatment of Credit.--Except as provided in subsection (e), for 
purposes of the Internal Revenue Code of 1986, the credit allowed under 
subsection (a) shall be treated as a credit allowed under subpart A of 
part IV of subchapter A of chapter 1 of such Code.
    (e) Portion of Credit Refundable.--The aggregate credits allowed to 
a taxpayer under subpart C of the Internal Revenue Code of 1986 shall 
be increased by the lesser of--
            (1) the amount of the credit which would be allowed under 
        this section without regard to this subsection and the 
        limitation under section 26(a) of such Code, or
            (2) $500.
The amount of the credit allowed under this subsection shall reduce the 
amount of the credit otherwise allowable under subsection (a) without 
regard to section 26(a) of such Code.

SEC. 2. WAIVER OF LIMIT ON CHARITABLE DONATIONS FOR RELIEF OF VICTIMS 
              OF HURRICANE KATRINA.

    (a) In General.--Paragraph (1) of section 170(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(G) Waiver of limitation for hurricane katrina 
                contributions.--
                            ``(i) In general.--This paragraph shall be 
                        disregarded with respect to the aggregate of 
                        contributions for any taxable year which are 
                        described in clause (ii).
                            ``(ii) Contribution described.--A 
                        contribution is described in this clause if 
                        such contribution is a cash contribution made 
                        before January 1, 2010, for the relief of 
                        victims in areas affected by Hurricane 
                        Katrina.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to contributions made after August 28, 2005.
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