I 112th CONGRESS 1st Session H. R. 3048 IN THE HOUSE OF REPRESENTATIVES September 23, 2011 Ms. DeLauro (for herself, Mr. Welch, Mr. Pascrell, Mr. Price of North Carolina, Mr. Fattah, Mr. Hinchey, Mr. Courtney, and Mr. Michaud) 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 provide a look back rule in the case of federally declared disasters for determining earned income for purposes of the child tax credit and the earned income credit, and for other purposes.

1.

Short title

This Act may be cited as the Tax Relief for Victims of Disasters Act of 2011.

2.

Special rule for determining earned income made applicable generally to federally declared disasters

(a)

In general

Section 1400S(d)(2)(A) of the Internal Revenue Code of 1986 is amended— (1)by striking and any and inserting any, and (2)by inserting before the period at the end , and any qualified federally declared disaster individual. (b)

Qualified federally declared disaster individual

Section 1400S(d)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following: (E)

Qualified federally declared disaster individual

The term qualified federally declared disaster individual means with respect to a federally declared disaster occurring after December 31, 2010, and before January 1, 2013, any individual— (i)whose principal place of abode on the applicable date was located in the disaster area and such individual was displaced from such principal place of abode by reason of the federally declared disaster, or (ii)who performed substantially all employment services in the disaster area and was so employed on the applicable date. For purposes of the preceding sentence and paragraph (3)(D), the terms federally declared disaster and disaster area have the meanings given such terms in section 165(h)(3).. (c)

Applicable date

Section 1400S(d)(3) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting , and, and by inserting after subparagraph (C) the following: (D)in the case of a qualified federally declared disaster individual, the date of the federally declared disaster. . (d)

Effective date

The amendments made by this section shall apply with respect to federally declared disasters occurring after December 31, 2010.

3.

Losses attributable to federally declared disasters

(a)

In general

Section 1400S(b) of the Internal Revenue Code of 1986 is amended— (1)by striking and (2)(A) in the matter preceding paragraph (1) and inserting , (2)(A), and (3), (2)by striking or at the end of paragraph (2), (3)by striking the period at the end of paragraph (3) and inserting , or, and (4)by inserting after paragraph (3) the following new paragraph: (4)which arise in the disaster area (as defined in section 165(h)(3)(C)(ii)) and which are attributable to a federally declared disaster (as defined in section 165(h)(3)(C)(i)) occurring after December 31, 2010, and before January 1, 2013. . (b)

Effective date

The amendments made by this section shall apply with respect to federally declared disasters occurring after December 31, 2010.

4.

Additional exemption for housing qualified federally declared disaster displaced individuals

(a)

In general

In the case of taxable years of a natural person beginning in 2011 or 2012, for purposes of the Internal Revenue Code of 1986, taxable income shall be reduced by $500 for each qualified federally declared disaster displaced individual of the taxpayer for the taxable year. (b)

Limitations

(1)

Dollar limitation

The reduction under subsection (a) shall not exceed $2,000, reduced by the amount of the reduction under this section for all prior taxable years. (2)

Individuals taken into account only once

An individual shall not be taken into account under subsection (a) if such individual was taken into account under such subsection by the taxpayer for any prior taxable year. (3)

Identifying information required

An individual shall not be taken into account under subsection (a) for a taxable year unless the taxpayer identification number of such individual is included on the return of the taxpayer for such taxable year. (c)

Qualified federally declared disaster displaced individual

For purposes of this section, the term qualified federally declared disaster displaced individual means, with respect to any taxpayer for any taxable year, any qualified federally declared disaster individual (as defined in section 1400S(d)(2)(E)(i)) if such individual 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. Such term shall not include the spouse or any dependent of the taxpayer. (d)

Compensation for housing

No deduction shall be allowed under this section if the taxpayer receives any rent or other amount (from any source) in connection with the providing of such housing.