I 111th CONGRESS 2d Session H. R. 5398 IN THE HOUSE OF REPRESENTATIVES May 25, 2010 Mr. Paul introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow the first-time homebuyer credit for the purchase of a principal residence to replace a principal residence damaged or destroyed in a federally declared disaster, and for other purposes.

1.

Short title

This Act may be cited as the Help Disaster Victims Buy a New Home Act of 2010.

2.

Allowance of first-time homebuyer credit for replacing principal residence damaged or destroyed in Federally declared disaster

(a)

In general

Section 36 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h)

Special rules relating to federally declared disasters

(1)

In general

In the case of an individual (and, if married, such individual’s spouse) who purchases a principal residence to replace the principal residence of such individual (and spouse) damaged or destroyed by a federally declared disaster, such individual (and spouse) shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence. (2)

Federally declared disaster

For purposes of this subsection, the term federally declared disaster has the meaning given such term by section 165(h)(3). . (b)

Effective date

The amendment made by this section shall apply to purchases after the date of the enactment of this Act.

3.

Modification of casualty loss rules

(a)

Deduction allowed in computing adjusted gross income

Subsection (a) of section 62 of the Internal Revenue Code of 1986 is amended by inserting before the last sentence the following new paragraph: (22)

Casualty loss due to Federally declared disaster

The deduction allowed by section 165 by reason of subsection (h)(3) thereof. . (b)

Election To take loss in subsequent year

Paragraph (1) of section 165(i) of such Code is amended— (1)in the text by inserting one of the succeeding 5 taxable years immediately following the taxable year in which the disaster occurred before the period, and (2)in the heading by striking for preceding and inserting in a different. (c)

Effective date

The amendments made by this section shall apply to disasters declared in taxable years beginning after the date of the enactment of this Act.

4.

Exclusion of disaster-related unemployment assistance from gross income

(a)

In general

Section 85 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (d)

Exception relating to disasters

Subsection (a) shall not apply to assistance provided under section 410 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5177). . (b)

Effective date

The amendment made by subsection (a) shall apply to amounts received after the date of the enactment of this Act.