[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3322 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3322

 To provide tax relief for the victims of severe storms, tornados, and 
            flooding in the Midwest, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 23, 2008

  Mr. Grassley (for himself, Mr. Harkin, Mr. Roberts, Mr. Durbin, Mr. 
    Coleman, Mr. Bond, Mr. Brownback, Mr. Bayh, Mrs. McCaskill, Ms. 
  Klobuchar, Mr. Obama, and Mr. Lugar) 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 severe storms, tornados, and 
            flooding in the Midwest, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Midwestern Disaster Tax Relief Act 
of 2008''.

SEC. 2. TEMPORARY TAX RELIEF FOR AREAS DAMAGED BY 2008 MIDWESTERN 
              SEVERE STORMS, TORNADOS, AND FLOODING.

    (a) In General.--Subject to the modifications described in this 
section, the following provisions of or relating to the Internal 
Revenue Code of 1986 shall apply to any Midwestern disaster area in 
addition to the areas to which such provisions otherwise apply:
            (1) Go zone benefits.--
                    (A) Section 1400N (relating to tax benefits) other 
                than subsections (b), (i), (j), (m), and (o) thereof.
                    (B) Section 1400O (relating to education tax 
                benefits).
                    (C) Section 1400P (relating to housing tax 
                benefits).
                    (D) Section 1400Q (relating to special rules for 
                use of retirement funds).
                    (E) Section 1400R(a) (relating to employee 
                retention credit for employers).
                    (F) Section 1400S (relating to additional tax 
                relief) other than subsection (d) thereof.
                    (G) Section 1400T (relating to special rules for 
                mortgage revenue bonds).
            (2) Other benefits included in katrina emergency tax relief 
        act of 2005.--Sections 302, 303, 304, 401, and 405 of the 
        Katrina Emergency Tax Relief Act of 2005.
    (b) Use of Amended Income Tax Returns To Take Into Account Receipt 
of Certain Casualty Loss Grants by Disallowing Previously Taken 
Casualty Loss Deductions.--
            (1) In general.--Notwithstanding any other provision of the 
        Internal Revenue Code of 1986, if a taxpayer 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 the severe storms, tornados, or flooding 
        giving rise to any Presidential declaration described in 
        subsection (c)(1)(A) and in a subsequent taxable year receives 
        a grant under any Federal or State program as reimbursement for 
        such loss, 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.
            (2) Time of filing amended return.--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--
                    (A) the due date for filing the tax return for the 
                taxable year in which the taxpayer receives such grant, 
                or
                    (B) the date which is 1 year after the date of the 
                enactment of this Act.
            (3) Waiver of penalties and interest.--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.
    (c) Midwestern Disaster Area.--
            (1) In general.--For purposes of this section and for 
        applying the substitutions described in subsections (e) and 
        (f), the term ``Midwestern disaster area'' means an area--
                    (A) with respect to which a major disaster has been 
                declared by the President on or after May 20, 2008, and 
                before August 1, 2008, under section 401 of the Robert 
                T. Stafford Disaster Relief and Emergency Assistance 
                Act by reason of severe storms, tornados, or flooding 
                occurring in any of the States of Arkansas, Illinois, 
                Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, 
                Nebraska, and Wisconsin, and
                    (B) determined by the President to warrant 
                individual or individual and public assistance from the 
                Federal Government under such Act with respect to 
                damages attributable to such severe storms, tornados, 
                or flooding.
            (2) Certain benefits available to areas eligible only for 
        public assistance.--For purposes of applying this section to 
        benefits under the following provisions, paragraph (1) shall be 
        applied without regard to subparagraph (B):
                    (A) Sections 1400Q, 1400S(b), and 1400S(d) of the 
                Internal Revenue Code of 1986.
                    (B) Sections 302, 401, and 405 of the Katrina 
                Emergency Tax Relief Act of 2005.
    (d) References.--
            (1) Area.--Any reference in such provisions to the 
        Hurricane Katrina disaster area or the Gulf Opportunity Zone 
        shall be treated as a reference to any Midwestern disaster area 
        and any reference to the Hurricane Katrina disaster area or the 
        Gulf Opportunity Zone within a State shall be treated as a 
        reference to all Midwestern disaster areas within the State.
            (2) Items attributable to disaster.--Any reference in such 
        provisions to any loss, damage, or other item attributable to 
        Hurricane Katrina shall be treated as a reference to any loss, 
        damage, or other item attributable to the severe storms, 
        tornados, or flooding giving rise to any Presidential 
        declaration described in subsection (c)(1)(A).
            (3) Applicable disaster date.--For purposes of applying the 
        substitutions described in subsections (e) and (f), the term 
        ``applicable disaster date'' means, with respect to any 
        Midwestern disaster area, the date on which the severe storms, 
        tornados, or flooding giving rise to the Presidential 
        declaration described in subsection (c)(1)(A) occurred.
    (e) Modifications to 1986 Code.--The following provisions of the 
Internal Revenue Code of 1986 shall be applied with the following 
modifications:
            (1) Tax-exempt bond financing.--Section 1400N(a)--
                    (A) by substituting ``qualified Midwestern disaster 
                area bond'' for ``qualified Gulf Opportunity Zone 
                Bond'' each place it appears, except that in 
                determining whether a bond is a qualified Midwestern 
                disaster area bond--
                            (i) paragraph (2)(A)(i) shall be applied by 
                        only treating costs as qualified project costs 
                        if--
                                    (I) in the case of a project 
                                involving a private business use (as 
                                defined in section 141(b)(6)), either 
                                the person using the property suffered 
                                a loss in a trade or business 
                                attributable to the severe storms, 
                                tornados, or flooding giving rise to 
                                any Presidential declaration described 
                                in subsection (c)(1)(A) or is a person 
                                designated for purposes of this section 
                                by the Governor of the State in which 
                                the project is located as a person 
                                carrying on a trade or business 
                                replacing a trade or business with 
                                respect to which another person 
                                suffered such a loss, and
                                    (II) in the case of a project 
                                relating to public utility property, 
                                the project involves repair or 
                                reconstruction of public utility 
                                property damaged by such severe storms, 
                                tornados, or flooding, and
                            (ii) paragraph (2)(A)(ii) shall be applied 
                        by treating an issue as a qualified mortgage 
                        issue only if 95 percent or more of the net 
                        proceeds (as defined in section 150(a)(3)) of 
                        the issue are to be used to provide financing 
                        for mortgagors who suffered damages to their 
                        principal residences attributable to such 
                        severe storms, tornados, or flooding.
                    (B) by substituting ``any State in which a 
                Midwestern disaster area is located'' for ``the State 
                of Alabama, Louisiana, or Mississippi'' in paragraph 
                (2)(B),
                    (C) by substituting ``designated for purposes of 
                this section (on the basis of providing assistance to 
                areas in the order in which such assistance is most 
                needed)'' for ``designated for purposes of this 
                section'' in paragraph (2)(C),
                    (D) by substituting ``January 1, 2013'' for 
                ``January 1, 2011'' in paragraph (2)(D),
                    (E) in paragraph (3)(A)--
                            (i) by substituting ``$1,000'' for 
                        ``$2,500'', and
                            (ii) by substituting ``before the earliest 
                        applicable disaster date for Midwestern 
                        disaster areas within the State'' for ``before 
                        August 28, 2005'',
                    (F) by substituting ``qualified Midwestern disaster 
                area repair or construction'' for ``qualified GO Zone 
                repair or construction'' each place it appears, and
                    (G) by substituting ``after the date of the 
                enactment of the Housing and Economic Recovery Act of 
                2008 and before January 1, 2013'' for ``after the date 
                of the enactment of this paragraph and before January 
                1, 2011'' in paragraph (7)(C).
            (2) Low-income housing credit.--Section 1400N(c)--
                    (A) only with respect to calendar years 2009, 2010, 
                and 2011,
                    (B) by substituting ``Disaster Recovery Assistance 
                housing amount'' for ``Gulf Opportunity housing 
                amount'',
                    (C) in paragraph (1)(B)--
                            (i) by substituting ``$4.00'' for 
                        ``$18.00'', and
                            (ii) by substituting ``before the earliest 
                        applicable disaster date for Midwestern 
                        disaster areas within the State'' for ``before 
                        August 28, 2005'' , and
                    (D) determined without regard to paragraphs (2), 
                (3), (4), (5), and (6) thereof.
            (3) Special allowance for certain property acquired on or 
        after the applicable disaster date.--Section 1400N(d)--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance property'' for ``qualified Gulf Opportunity 
                Zone property'' each place it appears, except that a 
                taxpayer shall be allowed additional bonus depreciation 
                and expensing under such subsection or section 1400N(e) 
                with respect to such property only if--
                            (i) the taxpayer suffered an economic loss 
                        attributable to the severe storms, tornados, or 
                        flooding giving rise to any Presidential 
                        declaration described in subsection (c)(1)(A), 
                        and
                            (ii) such property--
                                    (I) rehabilitates property damaged, 
                                or replaces property destroyed or 
                                condemned, as a result of such severe 
                                storms, tornados, or flooding, except 
                                that, for purposes of this clause, 
                                property shall be treated as replacing 
                                property destroyed or condemned if, as 
                                part of an integrated plan, such 
                                property replaces property which is 
                                included in a continuous area which 
                                includes real property destroyed or 
                                condemned, and
                                    (II) is similar in nature to, and 
                                located in the same county as, the 
                                property being rehabilitated or 
                                replaced,
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' each place it appears,
                    (C) by substituting ``December 31, 2011'' for 
                ``December 31, 2007'' in paragraph (2)(A)(v),
                    (D) by substituting ``December 31, 2012'' for 
                ``December 31, 2008'' in paragraph (2)(A)(v),
                    (E) by substituting ``the day before the applicable 
                disaster date'' for ``August 27, 2005'' in paragraph 
                (3)(A),
                    (F) determined without regard to paragraph (6) 
                thereof, and
                    (G) by not including as qualified Disaster Recovery 
                Assistance property any property to which section 
                168(k) applies.
            (4) Increase in expensing under section 179.--Section 
        1400N(e), by substituting ``qualified section 179 Disaster 
        Recovery Assistance property'' for ``qualified section 179 Gulf 
        Opportunity Zone property'' each place it appears.
            (5) Expensing for certain demolition and clean-up costs.--
        Section 1400N(f)--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance clean-up cost'' for ``qualified Gulf 
                Opportunity Zone clean-up cost'' each place it appears,
                    (B) by substituting ``beginning on the applicable 
                disaster date and ending on December 31, 2010'' for 
                ``beginning on August 28, 2005, and ending on December 
                31, 2007'' in paragraph (2), and
                    (C) by treating costs as qualified Disaster 
                Recovery Assistance clean-up costs only if the removal 
                of debris or demolition of any structure was necessary 
                due to damage attributable to the severe storms, 
                tornados, or flooding giving rise to any Presidential 
                declaration described in subsection (c)(1)(A).
            (6) Extension of expensing for environmental remediation 
        costs.--Section 1400N(g)--
                    (A) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2011'' for 
                ``January 1, 2008'' in paragraph (1),
                    (C) by substituting ``December 31, 2010'' for 
                ``December 31, 2007'' in paragraph (1), and
                    (D) by treating a site as a qualified contaminated 
                site only if the release (or threat of release) or 
                disposal of a hazardous substance at the site was 
                attributable to the severe storms, tornados, or 
                flooding giving rise to any Presidential declaration 
                described in subsection (c)(1)(A).
            (7) Increase in rehabilitation credit.--Section 1400N(h)--
                    (A) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'',
                    (B) by substituting ``January 1, 2011'' for 
                ``January 1, 2008'' in paragraph (1), and
                    (C) by only applying such subsection to qualified 
                rehabilitation expenditures with respect to any 
                building or structure which was damaged or destroyed as 
                a result of the severe storms, tornados, or flooding 
                giving rise to any Presidential declaration described 
                in subsection (c)(1)(A).
            (8) Treatment of net operating losses attributable to 
        disaster losses.--Section 1400N(k)--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance loss'' for ``qualified Gulf Opportunity Zone 
                loss'' each place it appears,
                    (B) by substituting ``after the day before the 
                applicable disaster date, and before January 1, 2011'' 
                for ``after August 27, 2005, and before January 1, 
                2008'' each place it appears,
                    (C) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in paragraph 
                (2)(B)(ii)(I),
                    (D) by substituting ``qualified Disaster Recovery 
                Assistance property'' for ``qualified Gulf Opportunity 
                Zone property'' in paragraph (2)(B)(iv), and
                    (E) by substituting ``qualified Disaster Recovery 
                Assistance casualty loss'' for ``qualified Gulf 
                Opportunity Zone casualty loss'' each place it appears.
            (9) Credit to holders of tax credit bonds.--Section 
        1400N(l)--
                    (A) by substituting ``Midwestern tax credit bond'' 
                for ``Gulf tax credit bond'' each place it appears,
                    (B) by substituting ``any State in which a 
                Midwestern disaster area is located'' for ``the State 
                of Alabama, Louisiana, or Mississippi'' in paragraph 
                (4)(A)(i),
                    (C) by substituting ``after December 31, 2008 and 
                before January 1, 2010'' for ``after December 31, 2005, 
                and before January 1, 2007'',
                    (D) by substituting ``shall not exceed $100,000,000 
                for any State with an aggregate population located in 
                all Midwestern disaster areas within the State of at 
                least 2,000,000, $50,000,000 for any State with an 
                aggregate population located in all Midwestern disaster 
                areas within the State of at least 1,000,000 but less 
                than 2,000,000, and zero for any other State. The 
                population of a State within any area shall be 
                determined on the basis of the most recent census 
                estimate of resident population released by the Bureau 
                of Census before the earliest applicable disaster date 
                for Midwestern disaster areas within the State.'' for 
                ``shall not exceed'' and all that follows in paragraph 
                (4)(C), and
                    (E) by substituting ``the earliest applicable 
                disaster date for Midwestern disaster areas within the 
                State'' for ``August 28, 2005'' in paragraph (5)(A).
            (10) Education tax benefits.--Section 1400O, by 
        substituting ``2008 or 2009'' for ``2005 or 2006''.
            (11) Housing tax benefits.--Section 1400P, by substituting 
        ``the applicable disaster date'' for ``August 28, 2005'' in 
        subsection (c)(1).
            (12) Special rules for use of retirement funds.--Section 
        1400Q--
                    (A) by substituting ``qualified Disaster Recovery 
                Assistance distribution'' for ``qualified hurricane 
                distribution'' each place it appears,
                    (B) by substituting ``on or after the applicable 
                disaster date and before January 1, 2010'' for ``on or 
                after August 25, 2005, and before January 1, 2007'' in 
                subsection (a)(4)(A)(i),
                    (C) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' in subsections 
                (a)(4)(A)(i) and (c)(3)(B),
                    (D) by disregarding clauses (ii) and (iii) of 
                subsection (a)(4)(A) thereof,
                    (E) by substituting ``qualified storm damage 
                distribution'' for ``qualified Katrina distribution'' 
                each place it appears,
                    (F) by substituting ``after the date which is 6 
                months before the applicable disaster date and before 
                the date which is the day after the applicable disaster 
                date'' for ``after February 28, 2005, and before August 
                29, 2005'' in subsection (b)(2)(B)(ii),
                    (G) by substituting ``the Midwestern disaster area, 
                but not so purchased or constructed on account of 
                severe storms, tornados, or flooding giving rise to the 
                designation of the area as a disaster area'' for ``the 
                Hurricane Katrina disaster area, but not so purchased 
                or constructed on account of Hurricane Katrina'' in 
                subsection (b)(2)(B)(iii),
                    (H) by substituting ``beginning on the applicable 
                disaster date and ending on the date which is 5 months 
                after the date of the enactment of the Housing and 
                Economic Recovery Act of 2008'' for ``beginning on 
                August 25, 2005, and ending on February 28, 2006'' in 
                subsection (b)(3)(A),
                    (I) by substituting ``qualified storm damage 
                individual'' for ``qualified Hurricane Katrina 
                individual'' each place it appears,
                    (J) by substituting ``December 31, 2009'' for 
                ``December 31, 2006'' in subsection (c)(2)(A),
                    (K) by substituting ``beginning on the date of the 
                enactment of the Housing and Economic Recovery Act of 
                2008 and ending on December 31, 2009'' for ``beginning 
                on September 24, 2005, and ending on December 31, 
                2006'' in subsection (c)(4)(A)(i),
                    (L) by substituting ``the applicable disaster 
                date'' for ``August 25, 2005'' in subsection 
                (c)(4)(A)(ii), and
                    (M) by substituting ``January 1, 2010'' for 
                ``January 1, 2007'' in subsection (d)(2)(A)(ii).
            (13) Employee retention credit for employers affected by 
        severe storms, tornados, and flooding.--Section 1400R(a)--
                    (A) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' each place it appears,
                    (B) by substituting ``January 1, 2009'' for 
                ``January 1, 2006'' both places it appears, and
                    (C) only with respect to eligible employers who 
                employed an average of not more than 200 employees on 
                business days during the taxable year before the 
                applicable disaster date.
            (14) Temporary suspension of limitations on charitable 
        contributions.--Section 1400S(a), by substituting the following 
        paragraph for paragraph (4) thereof:
            ``(4) Qualified contributions.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified contribution' means any charitable 
                contribution (as defined in section 170(c)) if--
                            ``(i) such contribution--
                                    ``(I) is paid during the period 
                                beginning on the earliest applicable 
                                disaster date for all States and ending 
                                on December 31, 2008, in cash to an 
                                organization described in section 
                                170(b)(1)(A), and
                                    ``(II) is made for relief efforts 
                                in 1 or more Midwestern disaster areas,
                            ``(ii) the taxpayer obtains from such 
                        organization contemporaneous written 
                        acknowledgment (within the meaning of section 
                        170(f)(8)) that such contribution was used (or 
                        is to be used) for relief efforts in 1 or more 
                        Midwestern disaster areas, and
                            ``(iii) the taxpayer has elected the 
                        application of this subsection with respect to 
                        such contribution.
                    ``(B) Exception.--Such term shall not include a 
                contribution by a donor if the contribution is--
                            ``(i) to an organization described in 
                        section 509(a)(3), or
                            ``(ii) for establishment of a new, or 
                        maintenance of an existing, donor advised fund 
                        (as defined in section 4966(d)(2)).
                    ``(C) Application of election to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation, the election under subparagraph (A)(iii) 
                shall be made separately by each partner or 
                shareholder.''.
            (15) Suspension of certain limitations on personal casualty 
        losses.--Section 1400S(b)(1), by substituting ``the applicable 
        disaster date'' for ``August 25, 2005''.
            (16) Special rule for determining earned income.--Section 
        1400S(d)--
                    (A) by treating an individual as a qualified 
                individual if such individual's principal place of 
                abode on the applicable disaster date was located in a 
                Midwestern disaster area,
                    (B) by treating the applicable disaster date with 
                respect to any such individual as the applicable date 
                for purposes of such subsection, and
                    (C) by treating an area as described in paragraph 
                (2)(B)(ii) thereof if the area is a Midwestern disaster 
                area only by reason of subsection (b)(2) of this 
                section (relating to areas eligible only for public 
                assistance).
            (17) Adjustments regarding taxpayer and dependency 
        status.--Section 1400S(e), by substituting ``2008 or 2009'' for 
        ``2005 or 2006''.
    (f) Modifications to Katrina Emergency Tax Relief Act of 2005.--The 
following provisions of the Katrina Emergency Tax Relief Act of 2005 
shall be applied with the following modifications:
            (1) Additional exemption for housing displaced 
        individual.--Section 302--
                    (A) by substituting ``2008 or 2009'' for ``2005 or 
                2006'' in subsection (a) thereof,
                    (B) by substituting ``Midwestern displaced 
                individual'' for ``Hurricane Katrina displaced 
                individual'' each place it appears, and
                    (C) by treating an area as a core disaster area for 
                purposes of applying subsection (c) thereof if the area 
                is a Midwestern disaster area without regard to 
                subsection (b)(2) of this section (relating to areas 
                eligible only for public assistance).
            (2) Increase in standard mileage rate.--Section 303, by 
        substituting ``beginning on the applicable disaster date and 
        ending on December 31, 2008'' for ``beginning on August 25, 
        2005, and ending on December 31, 2006''.
            (3) Mileage reimbursements for charitable volunteers.--
        Section 304--
                    (A) by substituting ``beginning on the applicable 
                disaster date and ending on December 31, 2008'' for 
                ``beginning on August 25, 2005, and ending on December 
                31, 2006'' in subsection (a), and
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 25, 2005'' in subsection (a).
            (4) Exclusion of certain cancellation of indebtedness 
        income.--Section 401--
                    (A) by treating an individual whose principal place 
                of abode on the applicable disaster date was in a 
                Midwestern disaster area (determined without regard to 
                subsection (b)(2) of this section) as an individual 
                described in subsection (b)(1) thereof, and by treating 
                an individual whose principal place of abode on the 
                applicable disaster date was in a Midwestern disaster 
                area solely by reason of subsection (b)(2) of this 
                section as an individual described in subsection (b)(2) 
                thereof,
                    (B) by substituting ``the applicable disaster 
                date'' for ``August 28, 2005'' both places it appears, 
                and
                    (C) by substituting ``January 1, 2010'' for 
                ``January 1, 2007'' in subsection (e).
            (5) Extension of replacement period for nonrecognition of 
        gain.--Section 405, by substituting ``on or after the 
        applicable disaster date'' for ``on or after August 25, 2005''.

SEC. 3. ENHANCED CHARITABLE DEDUCTIONS FOR CONTRIBUTIONS OF FOOD 
              INVENTORY.

    (a) Increased Amount of Deduction.--
            (1) In general.--Clause (iv) of section 170(e)(3)(C) 
        (relating to termination) of the Internal Revenue Code of 1986 
        is amended by striking ``December 31, 2007'' and inserting 
        ``December 31, 2009''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to contributions made after December 31, 2007.
    (b) Temporary Suspension of Limitations on Charitable 
Contributions.--
            (1) In general.--Section 170(b) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(3) Temporary suspension of limitations on charitable 
        contributions.--In the case of a qualified farmer or rancher 
        (as defined in paragraph (1)(E)(v)), any charitable 
        contribution of food--
                    ``(A) to which subsection (e)(3)(C) applies 
                (without regard to clause (ii) thereof), and
                    ``(B) which is made during the period beginning on 
                the date of the enactment of this paragraph and before 
                January 1, 2009,
        shall be treated for purposes of paragraph (1)(E) or (2)(B), 
        whichever is applicable, as if it were a qualified conservation 
        contribution which is made by a qualified farmer or rancher and 
        which otherwise meets the requirements of such paragraph.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.

SEC. 4. EXTENSION OF ENHANCED CHARITABLE DEDUCTION FOR CONTRIBUTIONS OF 
              BOOK INVENTORY.

    (a) Extension.--Clause (iv) of section 170(e)(3)(D) of the Internal 
Revenue Code of 1986 (relating to termination) of the Internal Revenue 
Code of 1986 is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (b) Clerical Amendment.--Clause (iii) of section 170(e)(3)(D) of 
such Code (relating to certification by donee) is amended by inserting 
``of books'' after ``to any contribution''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after December 31, 2007.

SEC. 5. REPORTING REQUIREMENTS RELATING TO DISASTER RELIEF 
              CONTRIBUTIONS.

    (a) In General.--Section 6033(b) of the Internal Revenue Code of 
1986 (relating to returns of certain organizations described in section 
501(c)(3)) is amended by striking ``and'' at the end of paragraph (13), 
by redesignating paragraph (14) as paragraph (15), and by adding after 
paragraph (13) the following new paragraph:
            ``(14) such information as the Secretary may require with 
        respect to disaster relief activities, including the amount and 
        use of qualified contributions to which section 1400S(a) 
        applies, and''.
    (b) Effective Date.--The amendments made by this section shall 
apply to returns the due date for which (determined without regard to 
any extension) occurs after December 31, 2008.
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